Ahmedabad Chartered Accountants Journal May, 2023 105 Taking an overall view, the Authority also specifically dealt with other relevant provisions of the Act to conclude that there is no legislative mandate to force the completion of the Project by the Promoter. As such, the Authority noted that it could not remain a mute spectator despite the lack of provision for deregistration in the Act and held that it would become inevitable where a dead lock is created by the inability of the promoter to continue the project and the allottees refusal to exit. Notably, Section 18 of the Act dealing with the failure of the promoter of a real estate project to complete it, does not allow for voluntary refund at the instance of a promoter. However, the Authority held that this provision would not allow allottees to force completion where the promoter is unwilling to continue with the project, such as in the present case. Section 18 of the Act intends to protect the interest of the allottee(s) concerned and to prevent a promoter from singling out any of the allottees. In the facts of the case, the Authority found the change to be inevitable, as (i) 2/3rd of the allottees had acknowledged that the Project would not proceed in the form previously envisaged and agreed to exit the project; (ii) it would not be commercially viable to insist on the Promoter completing the Project as the Promoter might not be able to find new takers for the Project to render it viable; (iii) the Promoter had indicated willingness to refund the amount paid by the allottees along with interest; and (iv) since the allottees did not contend that they were selectively chosen for removal from the project, no malafide intent was alleged. Accordingly, in the facts of the case, the Authority held that de-registration would be appropriate. Having concluded that de-registration would be permissible, the Authority considered the question of the remedy available to the 5 allottees. The Authority observed that the remedy now available to the 5 allottees is to accept payment of refund together with interest. Having said that, given that the adjudication of the issue of termination of the allotment was pending before the Bombay High Court (in the suits filed by these 5 allottees), the Authority held that it would refrain from interfering in this regard. ❉ ❉ ❉ GujRERA Corner submission of reply to show cause notice can’t be a ground for cancellation of registration. Therefore, the petitioner was also entitled for same relief and cancellation of registration order was liable to be set aside. The Court also permitted the petitioner to appear before department along with reply to show cause notice and directed the department to pass a fresh order in accordance with law. [5] Issue: Assessment order passed without hearing opportunity to be quashed for violation of principles of natural justice: HC: Case Law: Senthilkumar V. State Tax Officer [2023] 148 taxmann.com 394 (Mad) Facts: The Petitioner filed writ petition to challenge the assessment order issued by the Adjudicating Authority on the ground that no personal hearing was afforded to the petitioner in the impugned assessment proceedings. It was contended that as per section 75(4) of the CGST Act, 2017, personal hearing ought to have been afforded to the petitioner since an adverse decision had been taken by the Authority. Held: The Hon’ble High Court noted that Section 75(4) of CGST Act, 2017 specifically requires grant of hearing opportunity where adverse decision contemplated against assessee. In the instant case, the impugned order imposed tax liability as well as penalty on the petitioner. However, no personal hearing was afforded to petitioner in impugned assessment proceedings. Therefore, it was held that the impugned assessment order was to be quashed on ground of violation of principles of natural justice and matter remanded for fresh consideration on merits and in accordance with law. ❉ ❉ ❉ Continued from page 96 GST and VAT - Judgements and Updates
106 Ahmedabad Chartered Accountants Journal May, 2023 Summary: RBI maintained the repo rates in the April policy meeting. The retail inflation also eased in April which should reflect favorably on RBI’s decision on rates on next MPC meeting also.The global banking crisis, that started in March, saw failure of one more large US bank, however it increasingly looks that the crisis has been contained. Despite of the ongoing turbulences in the global market, The Indian Stock markets have gained strength. Sensex and Nifty 50 improved by almost 3.60% to close at 61,112.44 and 4.06% to close at 18,605.00 respectively. Key Private Equity and M&A deals include Temasek buying 59% controlling stake in Manipal Health Enterprises, which is till date the largest healthcare deal in India and Fortis Healthcare Limited acquiring Manesar Unit of Medeor Hospitals Limited. Economic Update: - RBI, in its April 2023 policy meeting, opted to maintain the status quo on repo rates at 6.5%. CA. Karan Vora [email protected] - Retail inflation eased to an 18-month low of 4.7% in April from 5.66% in the preceding month. Inflation numbers were in line with the expectation and benefitted with a favorable base effect. - Favorable base effect is due to Russia-Ukraine crisis which started affecting prices in last April. - Food and beverage inflation also softened at 4.22% in April due to above average rainfall in April which kept vegetable prices in control. - Softening inflation should reflect favorably on the decision of RBI in the next MPC meeting, which again may hold the rates. - The International Monetary Fund (IMF) expects India to grow by 5.9% by FY24 and by an average rate of 6.1% over the next five years. - The Reserve Bank of India’s Foreign exchange reserves jumped to USD 7.2 Billion to an 11 month high of USD 595.98 Billion in the week ending on May 5, 2023. Global Banking Crisis: J P Morgan Chase acquires first Republic Bank. Transaction First Republic · First Republic’s demise marked the third bank · In 2020, San Francisco based First Republic became failure in 2023, along with Silicon Valley Bank the 14th largest U.S. bank with an enterprise value of and Signature Bank. $19 billion. · JPMorgan Chase acquired the substantial majority · First Republic operated 93 offices in 11 states, of assets and assumed the deposits of First primarily in New York, California, Massachusetts, and Republic for $10.6 billion. Florida. Reasons for Collapse Status of Crisis · First Republic’s failure was due to a run on · Banking Crisis started in March 2023, with the deposits following the collapse of Silicon Valley collapse of SVB, Signature Bank, and takeover of Bank and Signature Bank. Credit Suisse. · In total, the failed banks had combined $548.5 billion in assets, more than the total assets for all the failed banks in 2008. · However, chances of banking crisis deepening seem remote now as Fedsare expected to halt the rise in interest rates.
Ahmedabad Chartered Accountants Journal May, 2023 107 Secondary Market Update: - The momentum in the equity markets started to normalize with Nifty and Sensex gaining by 4.06% and 3.60% respectively over theprevious month. - Foreign Portfolio investors made their highest buying of 2023 in April to the tune of Rs. 11,631 Crores in Indian Equities. This would be the second consecutive month where FPIs are buyers. Whereas, FPIs are net sellers in a hybrid market with an outflow of Rs 126 Crores. Capital Markets - Strong Q4 results were announced by banking and auto companies that have boosted the morale of FIIs and DIIs leading to both ending up as net buyers. - The big reason for shift towards more positive FPI flows was due to RBI MPC decision to hold rates at 6.5%. Leading to a lot of FPI inflows into the rate sensitive sectors like banks, NBFCs and auto. Equity Markets March-23 April-23 % Change BSE Sensex 58,991.52 61,112.44 3.60% Nifty 50 17,359.75 18,065.00 4.06% BSE 500 23,160.01 24,209.37 4.53% BSE Healthcare 21,883.50 23,033.93 5.26% BSE IT 28,478.99 27,503.49 -3.43% BSE FMCG 16,487.02 17,238.74 4.56% BSE Metal 19,184.87 20,134.69 4.95% Primary Market Update: - There were 2 main board IPOs in April, 2023 of Avalon Technologies Limited, and Uday shivakumar infra Limited against 2 main board IPOs in March, 2023. However there were 3 SME IPOs in April, 2023 as against 13 SME IPOs in March, 2023.
108 Ahmedabad Chartered Accountants Journal May, 2023 Avalon Technologies Limited About Incorporated in 1999, Avalon Technologies Limited is a leading fully integrated Electronic Manufacturing Services company. The company is one of the leaders in the segment in India in terms of revenue in FY22 with revenue of Rs 841 Crores. Funds From the net proceeds of the fresh Utilization equity shares issue, ATL will spend Rs. 145.00 cr. for repayment/ prepayment of certain borrowings, Rs. 90.00 cr. for working capital and the rest for general corporate purposes. IPO The company came with a revised IPO Performance size of Rs. 865 Crores, consisting of a fresh equity issue worth Rs. 320.00 Crores and an offer for sale of Rs. 545.00 Crores. With a price band of Rs. 415 - Rs. 436 for an equity share of Rs. 2 face value. The issue was fully subscribed. The issue constitutes 30.39% of the post-IPO paid-up capital of the company. Udayshivakumar Infra Limited About Incorporated in 2019, Uday shivakumar Infra is engaged in the business of construction of various road projects, including national and state highways, district roads and smart roads under PM’s smart city mission projects etc. Funds The proceeds from the IPO will be Utilization used towards funding the incremental working capital requirements and General Corporate Purposes. IPO The IPO size was of Rs 66 Crores with Performance a fixed price band of Rs 33-35. The stock made a debut at Rs 30 on NSE against the IPO price of Rs 35. The initial share sale received a strong response from investors with the issue getting subscribed a massive 30 times. However, the stock listed at a discount of 14%. Funds Mobilization by Corporates (In Crore Rs.) Particulars Jan-23 Feb-23 I. Equity Issues 1,951 21,374 a. IPOs (i+ii) 478 85 i. Main Board 323 0 ii. SME Platform 155 85 b. FPOs 0 0 c. Equity Rights Issues 644 485 d. QIPs/IPPs 0 0 e. Preferential Allotments 829 20,804 II. Debt Issues 67,529 94,046 a. Debt Public Issues 1,863 188 b. Private Placement of Debt 65,666 93,859 Total Funds Mobilized (I+II) 69,480 1,15,421 Mergers and Acquisitions (M&A) and Private Equity (PE) key deals PE: Temasek buys 59% controlling stake in Manipal Health Enterprises Transaction: - Sheares Healthcare, a unit of Singapore’s Temasek, has agreed to buy a controlling stake in Manipal Health Enterprises, raising its ownership from 18% to close to 59% for about Rs. 16,400 Crores. - The National Investment and Infrastructure Fund (NIIF) will sell its entire 8% stake, they said, while Sheares Healthcare will acquire the remaining stake from the holding entity backed by Ranjan Pai. About Manipal Health Enterprises: - Established in 1991, the first branch of Manipal Hospitals was started in Bangalore. The branch is a 600-bed quaternary care facility and houses over 60 specialties. - Manipal currently has 8,300 beds in 29 hospitals spread in 16 cities, making them the second largest hospital chain in India. About Temasek: - Founded in 1974, Temasek is a global investment company headquartered in Singapore, has portfolio value as at 31st March 2022 of 403 billion USD. - Temasek’s recent investments include HealthKart for over Rs 1,100 Crores, Molbio Diagnostics for over Rs 690 Crore, DeHaat for Rs 486 Crores, Country Delight for Rs 185 Crore, Eye care chain Dr Agarwal’s for Rs 1,050 Crores. Capital Markets
Ahmedabad Chartered Accountants Journal May, 2023 109 Rationale: - The additional 41% stake is brought by Temasek at Rs 16,400 Crores, valuing the hospital at Rs 40,000 Crores, this is the largest health sector deal in India. Stakeholders Previous stake New stake Temasek 18% 59% Pai Family 52% 30% TPG Capital and 21% 11% other stakeholders - Manipal has been expanding across India, In March 2023, Manipal acquired the Kolkata-based AMRI Hospitals, in a deal worth Rs. 2400 Crores (subject to approval from the West Bengal government), In June 2021, Vikram Hospital for around Rs 350 Crores, and In 2020, it acquired Colombia Asia for Rs 2,100 Crores. - Chairman of Manipal Hospital Dr. Pai commented that the valuation of the hospital is reflective of long term potential of the healthcare service segment of India. - Pai further commented that consolidation will continue in healthcare space and lot more PE Funds will continue to invest large checks in this area. M&A: Fortis to acquire 350 bedded Manesar unit of Medeor Hospital for Rs 225 Crores. Transaction: - Fortis Healthcare Limited announced that it has signed definitive agreements with the VPS Group for the acquisition of its Medeor Hospital in Manesar, Gurugram with potential bed capacity of 350 beds for an overall purchase consideration of INR 225 Crore. - The transaction will be funded through a mix of debt and internal accruals. About Fortis Healthcare Limited: - Incorporated in 1996, Fortis Healthcare’s first facility became operational in Mohali, Punjab in 2001. - Currently, Fortis operates 27 healthcare facilities (including JVs and O&M facilities). The Hospital’s network comprises approximately 4,300 operational beds and 400 diagnostics centres. - On February 15, 2018, the shareholding of the erstwhile promoters, Mr.Malvinder Mohan Singh and Mr.Shivinder Mohan Singh, reduced to less than 1% after the Supreme Court allowed lenders to invoke the pledge against shares of FHL held as security. - Thereafter, the bids were invited from investors. And, IHH became the new promoter, investing around Rs 4,000 Crore in the company against fresh issuance of around 31.1% stake. About Medeor Hospitals Limited: - Incorporated in 2004, Medeor Hospital Limited formerly named Rockland Hospitals. - In 2016, the hospital got acquired by VPS healthcare group, Dubai, an integrated healthcare service provider with 24 operational hospitals, over 125 health centres, and medical support services spread across the Middle East, Europe, and India. - Medeor Hospitals is a chain of multi-specialty hospitals strategically located in Delhi NCR at Qutab, Dwarka, and Manesar (Gurugram). Rationale: - This acquisition will make Fortis the second largest healthcare services provider in Gurugram with over 850 beds, including their ongoing brownfield bed additions in Fortis Memorial Research Institute (FMRI). - The transaction entails the purchase of land, building and movable assets of the Hospital in Manesar, Gurugram, and is expected to close by end of July 2023, subject to the completion of certain conditions precedent as stipulated in the definitive agreements. - FHL’s consolidated operating revenue rose by 42% to Rs 5,718 Crore on-year in FY22. This was driven by 37% growth in hospital business to Rs 4,264 Crores & 55% growth in diagnostics business to Rs 1,605 Crores. - In FY22, the revenue growth in hospital business was owing to higher occupancy level at 63% and higher ARPOB at Rs 1.80 Crores. Acknowledgements: RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bse.com ❉ ❉ ❉ Capital Markets
110 Ahmedabad Chartered Accountants Journal May, 2023 Revenue Recognition - Annual Report -2021-2022 Transpek Industry Limited Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company assesses promises in the contract that are separate performance obligations to which a portion of transaction price is allocated. Sale of Goods :Revenue from the sale of goods is recognised at a point in time when control of the asset is transferred to the customer, generally on the delivery of the goods. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the Company considers the effects of variable consideration, the existence of significant financing component and consideration payable to the customer like return and trade discounts. Sales are disclosed excluding net of sales returns and Goods and Service Tax (GST). Conversion Charges : Income is recorded on accrual basis on dispatch of material and as per terms of agreement. Income from Wind Operated Power Generators: Income from Sale of Wind Operated Power is accounted on accrual basis on confirmation of units generated and supplied to the State Electricity Board as per the agreement. Sale of Scrap: Revenue from sale of scrap is recognised as and when scrap is sold. Tiger Logistics (India) Limited i) Sales: Sales comprise sale of services. Revenue from sale of services (freight & forwarding) is recognized on accrual basis on completion of job ii) Dividend & Other Income: Dividend income from investments is recognized when the shareholder’s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably). Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. Uttam Sugar Mills Limited Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and revenue can be reliably measured. The Company recognizes sale of goods when the significant risks and rewards of ownership are transferred to the Buyer, usually on delivery of goods. Revenue is measured at the fair value of the consideration received / receivable taking into account contractually defined terms of payment net of discounts, volume rebates and excluding taxes or duties collected on behalf of the Government. Revenue from sale of power is recognized when the units generated are transmitted to the pooling station, in accordance with the terms and conditions of the power purchase agreement entered into by the Company with the purchasing parties. CA. Pamil H. Shah [email protected] From Published Accounts
Ahmedabad Chartered Accountants Journal May, 2023 111 Income from sale of REC is recognized on delivery of REC to the customers ‘account. Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the “effective interest rate” that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s gross carrying amount. Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims. All other incomes are accounted for on accrual basis. Dollar Industries Limited Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the Government. a) Sale of Goods: Sale of goods is recognised at the point in time when control of the goods is transferred to the customer. The revenue is measured on the basis of the consideration defined in the contract with a customer, including variable consideration, such as discounts, volume rebates, or other contractual reductions. As the period between the date on which the Company transfers the promised goods to thecustomer and the date on which the customer pays for these goods is generally one year or less, no financing components are taken into account. Certain contracts provide a customer with a right to return the goods within a specified period. The company uses the expected value method to estimate the goods that will not be returned because this method best predicts the amount of variable consideration to which the company will be entitled. The requirements in Ind AS 115 on constraining estimates of variable consideration are also applied in order to determine the amount of variable consideration that can be included in the transaction price for goods that are expected to be returned instead of revenue the Company recognises a refund liability. A right of return asset and corresponding adjustment to change in inventory is also recognised for the right to recover products from a customer. b) Sale of Services : In contracts involving the rendering of services, revenue is measured using the completed service method. c) Other Operating Revenue : Export incentive and subsidies are recognized when there is reasonable assurance that the Company will comply with the conditions and the incentive will be received. Insurance & other claims, where quantum of accruals cannot be ascertained with reasonable certainty are recognized as income only when revenue is virtually certain which generally coincides with receipt/acceptance. d) Interest Income: For all financial instruments measured at amortized cost, Interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash receipts over the expected lift of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. e) Dividend Income: Dividend Income from investments is recognized when the Company’s right to receive payment has been established. Shreyas Shipping and Logistics Limited Revenue is recognised upon transfer of control of promised services to customer at an amount that reflects the consideration expected to be received in exchange for those services. (i) Revenue from logistics service operations a) Ocean freight and charter hire income from transportation of cargo by inland and international waterways respectively is recognised following the proportionate completion method on time basis. b) In case of end-to-end logistics service under multimodal transport, the revenue is recognised following the proportionate completion method on time basis for each mode. From Published Accounts
112 Ahmedabad Chartered Accountants Journal May, 2023 c) Other operating income in the nature of documentation charges is recognised upon delivery of such services to the customers. d) The Company earns revenue from time charter. Time Charter hire earnings are accrued on time proportion basis. The consideration is determined based on the price specified in the contract. (ii) Dividend income Dividend income from investments is recognised when the shareholder’s right to receive payment has been established, provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. 110 (iii) Interest income Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. Sequent Scientific Limited a) Sale of products Revenue from sale of products is presented in the income statement within revenue from operations. The Company presents revenue net of indirect taxes in its standalone statement of profit and loss. Sale of products comprise revenue from sales of products, net of sales returns, rebates, incentives and customer discounts. Revenue is recognized when the Company transfers control over the product to the customers; control of a product refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from that asset. Performance obligations are satisfied at one point in time, typically on delivery.The majority of revenue earned by the Company is derived from the satisfaction of a single performance obligation for each contract which is the sale of products. Sales are measured at the fair value of consideration received or receivable. The amounts of rebates / incentives is estimated and accrued on each of the underlying sales transactions recognised. Returns and customer discounts are recognized in the period in which the underlying sales are recognized based on an estimate basis. The amount of sales returns is calculated on the basis of management’s best estimate of the amount of product that will ultimately be returned by customers. Contract assets A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the said earned consideration. Contract liabilities A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is received from customer or due, whichever is earlier. Contract liabilities are recognised as revenue when the Company performs under the contract. b) Services Income is recognised when the services are completed as per the terms of the agreement and when no significant uncertainty as to its determination or realisation exists. c) Export entitlements income Export entitlements from Government authorities are recognised in the standalone statement of profit and loss when the right to receive credit as per the terms of the scheme is established in respect of the exports made by the Company, and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds. d) Interest and dividend income Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a timely basis, by reference to the principal outstanding and at the effective interest rate applicable. Dividend income from investments is recognised when the Company’s right to receive payment has been established. ❉ ❉ ❉ From Published Accounts
Ahmedabad Chartered Accountants Journal May, 2023 113 CA. Kunal A. Shah [email protected] From the Government CA. Ashwin H. Shah [email protected] portals for taxpayers with aggregate turnover greater than or equal to 100 crores by three months. The next date of implementation will be shared with you in due course of time. (GST updates dated 06/05/2023) 3) Advisory on Bank Account Validation GSTN is pleased to inform you that the functionality for bank account validation is now integrated with the GST System. This feature is introduced to ensure that the bank accounts provided by the Tax Payer is correct. The bank account validation status can be seen under the Dashboard’!My Profile’!Bank Account Status tab in the FO portal. Tax Payers will also receive the bank account status detail on registered email and mobile number immediately after the validation is performed for his declared bank account. (GST updates dated 24/04/2023) ❉ ❉ ❉ GOODS AND SERVICE TAX 1) Notification regarding GST E-Invoice limit reduced The Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 196(E), dated 21st March, 2020, namely: In the said notification, in the first paragraph, with effect from the 1st day of August, 2023, for the words ¯ten crore rupees , the words ¯five crore rupees shall be substituted. (Notification No 10/2023, dated 10/05/2023) 2) Deferment of Implementation of Time Limit on Reporting Old e-Invoices It has been decided by the competent authority to defer the imposition of time limit of 7 days on reporting old e-invoices on the e-invoice IRP
114 Ahmedabad Chartered Accountants Journal May, 2023 How is Artificial Intelligence used in Finance Industry now? The financial services sector consistently embraces emerging technologies, and the integration of AI models and algorithms is no exception. While the specific approach to AI integration may vary based on the firm’s nature and services, the applications of AI in finance are extensive and continuously evolving, with a wide range of relevant use cases. AI offers numerous advantages to financial services firms, including improved efficiency and enhanced business intelligence. Each sector within the industry has identified specific AI use cases tailored to its distinct business requirements. As AI technology continues to advance, the adoption of AI in finance will become more prevalent. Here are some use cases on how AI can be used in the finance sector: AI for Loan Underwriting Traditional loan underwriting processes in banks have been labour-intensive and time-consuming. To ensure due diligence and manage risks, banks must verify applicants’ information, such as income, assets, property ownership, and debt. This requires sifting through various documents and data from multiple sources, which takes significant time. However, AI has revolutionised the loan underwriting process for banks. By leveraging AI’s capabilities, banks can efficiently process vast amounts of information, surpassing human speed. AI also aids in complex tasks like due diligence and risk management, helping lenders assess success or default. CA. Rushabh Shah [email protected] As a result, AI enables banks to save valuable time and resources by automating and optimising loan underwriting. AI for Credit Scoring A person’s credit score is crucial for financial institutions to assess their creditworthiness. Maintaining a healthy risk profile is vital for firms. Traditional credit scores may only reflect up-to-date information. However, AI in finance can provide real-time insights into a customer’s creditworthiness. By utilising AI models, banks can accurately and frequently score a customer’s credit, leading to improved credit decisions. AI algorithms analyse historical financial behaviour, previous loan applications, outstanding debt, and more to create a precise understanding of a customer’s impact on the firm’s risk profile. The use of AI in the finance industry benefits loan applicants. Banks can process more data and information using AI, resulting in a more holistic credit history and creditworthiness evaluation. This thorough vetting process increases the chances for customers with previously disqualified credit scores. AI models can also analyse alternative data, such as employment history or spending patterns, further enhancing the evaluation process. AI for Predictive Analysis Financial services firms aspire to predict the future, and advancements in AI bring them closer to this goal. Predictive analysis is a valuable tool for risk management and well-informed credit decisions.
Ahmedabad Chartered Accountants Journal May, 2023 115 Financial AI models continuously monitor customer behaviours and emerging information, offering real-time insights into future behaviours and trends. By analysing historical data, AI models and algorithms can identify patterns and forecast future actions and events. This capability has significant implications for improved fraud detection and accurately assessing customer creditworthiness. Predictive analysis enhances business intelligence, empowering firms to make better decisions. Claims Management and Fraud Detection AI Insurance companies face significant financial losses due to fraudulent claims, estimated at around $80 billion annually. Processing large daily claims is challenging and tedious for claims processors who manually review them. Given the sheer number of claims, it is impractical for humans to identify patterns and quickly determine fraudulent claims. AI in finance, with its predictive analytics capabilities and continuous monitoring of emerging data and claims, is aiding insurance firms in fighting fraud. AI models employ natural language processing to evaluate transcripts and machine learning algorithms to detect patterns and flag suspicious claims for further investigation. This application of AI saves time and resources for fraud detection in insurance claims. AI for Quantitative Trading In today’s competitive and volatile market, investors face high stakes. Keeping up with the constant flow of information and making informed investment decisions through traditional means takes time and effort. However, AI-based algorithmic trading offers a solution by enabling investors to execute profitable trades more efficiently. AI-powered quantitative trading identifies and capitalises on arbitrage opportunities using advanced algorithms and models. In fast-paced markets, trade timing can make the difference between profit and loss, often changing in milliseconds. This poses a significant challenge for human traders alone. While traders remain essential, AI models are increasingly employed to help investors stay competitive and enhance their trading outcomes. Conclusion Integrating emerging technology and AI transforms the finance industry, improving efficiencies and valuable business intelligence. AI’s role in finance is increasingly recognised by various firms, including banks, investment firms, and insurance companies, as they leverage AI to enhance their workflows and operations. Given the impact of rising competition and technological advancements on financial professionals, embracing AI is no longer optional but necessary to stay relevant and competitive in the industry. It is about time that we take this as an ample opportunity for us as professionals. ❉ ❉ ❉ IT Corner
116 Ahmedabad Chartered Accountants Journal May, 2023 72nd Annual General Meeting 1 At the 72nd Annual General Meeting of the members of the Chartered Accountants Association Ahmedabad held on Saturday, 6th May 2023 at Shantinath Hall, Ahmedabad, the following Office Bearers and Executive Committee Members have been declared elected for the year 2023-24. Office Bearers 1 CA. Shivang Chokshi President 2 CA. Riken J. Patel Vice - President 3 CA. Mayur H. Modha Hon. Secretary 4 CA. Prakash B. Nandola Hon. Secretary Executive Committee Members 1 CA. Darshan Parikh 2 CA. Dipam Patel 3 CA. Hiten Parikh 4 CA. Jignesh Shah 5 CA. Karan Shah 6 CA. Kushal Talati 7 CA. Rajni Shah 8 CA. Samir Shah 9 CA. Vartik Choksi The following prizes and Medals were declared: Best Article in Ahmedabad Chartered Accountant Journal Name of the Trophy Name of the Recipient Name of the Article published in the Journal Shri U. R. Shah Memorial CA. Chintan N. Patel “Demystifying Amendments in Funds Trophy for Best Article on Schedule III” Corporate and Other Laws. Shri Gatorbhai Patel Shiva Pharma CA. Jay Sharma “Income vs. Capital Receipt under Foundation Trophy for Best Article Income Tax Act, 1961” on Direct Taxes (Taxation) Champaben Chandulal Shah CA. Punit Prajapati “Search and Seizure under GST” Memorial Trophy Best Study Circle Meeting Leader Sr. Name of the Trophy Name of the Recipient Name of the Study Circle Meeting 1 Shri Dwarkadas B. Shah Adv. Tej Shah “Effect of the Supreme Court Judgment Memorial Trophy for the Best Lead and consequential issue of notices u/s Study Circle Meeting 148A of the Income Tax“ in 2022-23 CA. Mayur H. Modha Hon. Secretary CA. Prakash B. Nandola Hon. Secretary Association News
Ahmedabad Chartered Accountants Journal May, 2023 117 List of students, whose names have been declared for Medals / Prizes for the exams held in May 2022 and November 2022 Sr. Medal Name Award for Final Exam Attempt Name of the Recipent 1 Avinash J. Buddhdev CA Final Exams MAY 2022 Priyank Pushkarbhai Shah Memorial CA Student Topper Award (Cash Prize CA Final Exams NOV 2022 Vedant Manishkumar Kshatriya Rs. 11,000) Topper 2 Kantilal V. Patel Best Student in MAY 2022 Priyank Pushkarbhai Shah Memorial Medal (MAY 2022) A'bad 3 Mahendra M. Patel Best Student in (NOV NOV 2022 Vedant Manishkumar Kshatriya Memorial Medal 2022) Ahmedabad 4 H. V. Vasa Best Student in MAY 2022 Priyank Pushkarbhai Shah Memorial Medal Ahmedabad NOV 2022 Vedant Manishkumar Kshatriya 5 A. M. Thaker Best Lady Student MAY 2022 Riddhi Subhash Baghmar Memorial Medal in Ahmedabad NOV 2022 Arpita Anilbhai Sharma 6 Chandulal M. Shah Highest marks in MAY 2022 Om Chandrakant Akhani Memorial Medal Paper 1 – NOV 2022 Vedant Manishkumar Kshatriya Financial Reporting 7 VNS & BNS Social Highest marks in MAY 2022 Dhvanil Mehul Shah Welfare Medal Paper 2 – Strategic Financial NOV 2022 Yash Deepal Vashisth Management 8 Dhirubhai B. Shah Highest marks in MAY 2022 Priyank Pushkarbhai Shah Memorial Medal Paper 3 – Advanced Auditing and NOV 2022 Vedant Manishkumar Kshatriya Professional Ethics 9 Mansukhbhai J. Highest marks in MAY 2022 Saxar Bimalkumar Chauhan Shah Medal Paper 4 – Corporate and Economic Laws NOV 2022 Yash Deepal Vashisth 10 Madhuben Prafulbhai Highest marks in MAY 2022 Dhvanil Mehul Shah Trivedi Memorial Paper 5 - Strategic Medal Cost Management NOV 2022 Vedant Manishkumar Kshatriya and Performance Evaluation 11 VNS & BNS Social Highest marks in MAY 2022 Om Chandrakant Akhani Welfare Medal Paper 6 – Elective Paper NOV 2022 Yash Kamalkumar Jain 12 A. M. Gang Highest marks in MAY 2022 Ruchit Kalpesh Vakharia Memorial Medal Paper 7 – Direct Taxes Laws & NOV 2022 Vedant Manishkumar Kshatriya International Taxation 13 C. F. Patel Highest marks in MAY 2022 Ruchit Kalpesh Vakharia Memorial Medal Paper 7 – Direct Taxes Laws & NOV 2022 Vedant Manishkumar Kshatriya International Taxation Association News
118 Ahmedabad Chartered Accountants Journal May, 2023 Sr. Medal Name Award for Final Exam Attempt Name of the Recipent 14 Jagrutiben K. Shah Highest marks in MAY 2022 Om Chandrakant Akhani Memorial Medal Paper 8 – Indirect Taxes Laws NOV 2022 Vedant Manishkumar Kshatriya 15 Sandesh Mundra Best Student for the MAY 2022 Om Chandrakant Akhani Memorial Medal year 2020-21 - Paper 8 – Indirect Taxes Laws 16 Shri K. T. Thakore Best Student in MAY 2022 Parth Shah Memorial Medal Ahmedabad 17 Rameshchandra S. Best Student in NOV 2022 Nimish Gautam Shah Shah Memorial Medal Ahmedabad 18 B. S. Soni Best Student in MAY 2022 Parth Shah Memorial Medal Ahmedabad NOV 2022 Nimish Gautam Shah 19 Hasmukhbhai J. Patel Highest marks in MAY 2022 Sagar bhai Jodhbhai Desai Memorial Medal Paper 1 – Accounting NOV 2022 Nimish Gautam Shah 20 Shri V. R. Shah Best Student in MAY 2022 Priyal Pramod Jain Memorial Medal Ahmedabad for Paper 2 – Corporate & Other Laws 21 Lalita Khanchand Highest marks in MAY 2022 Parth Shah Tekwani Memorial Paper 3 – Cost and Medal Management NOV 2022 Haresh Himanshubhai Sonara Accounting 22 VNS & BNS Social Highest marks in MAY 2022 Parth Shah Welfare Medal Paper 4 – Taxation NOV 2022 Nimish Gautam Shah 23 Rameshchandra S. Highest marks in MAY 2022 Sagar bhai Jodhbhai Desai Shah Memorial Medal Paper 5 – Advanced Accounting NOV 2022 Vijay Narendra Ahuja 24 Nikhil M. Patel Highest marks in MAY 2022 Parth Shah Memorial Medal Paper 6 – Auditing and Assurance NOV 2022 Nimish Gautam Shah 25 Mansukhbhai J. Shah Highest marks in MAY 2022 Priyal Pramod Jain Medal Paper 7 – Enterprise Information Systems NOV 2022 Manish Bharatkumar Jain & Strategic Management 26 Office Bearers Highest marks in MAY 2022 Parth Shah 2018-19 (CAMS) Paper 8 – Financial Medal Management & NOV 2022 Nimish Gautam Shah Economics For Finance 2. M/s V M. Vaghashiya & Co., Chartered Accountants, are appointed as Auditors of the Association for the financial year 2023-2024. 3. The 1st Executive Committee Meeting: At the 1st Executive Committee Meeting held on 6th May 2023, three senior members of the Association namely (a) CA. Chandrakant H. Pamnani, (b) CA. Yamal Vyas, and (c) CA. Kaushik Patel have been co-opted as the members of the Executive Committee for the year 2023-24. The Immediate Past President CA. Sarju Mehta shall also be a part of the Executive Committee for the year 2023-2024. Association News
Ahmedabad Chartered Accountants Journal May, 2023 119 The following Sub-Committees were formed: Designation Name of the Member Journal Committee Chairman Shah Rajni Mangaldas Convener Kataria Ashok Chhugamal E. C. Representative Shah Karan Dhirenbhai Past President Sheth Prakash Bharatkumar Member Shah Rutvij Pankajkumar Member Desai Maulik Sharadbhai Member Choksi Nirav Rameshbhai Member Shah Jignesh Jaswantlal Member Shah Rushabh Mayank Residential Refresher Course Committee Chairman Shah Atul Ramendralal Convener Choksi Nirav Rameshbhai E. C. Representative Shah Samir Dwarkadas Past President Sharma Anand Satyadeo Member Patel Hemang Vinodkumar Member Shah Hirak Prarthan Member Pomal Hitesh Manharlal Member Khandwala Ronak Mukeshbhai Member Shah Rutvij Pankajkumar Member Patni Shaleen Suresh Brain Trust Cum Workshop Committee Chairman Pavagadhi Palak Bhaskerbhai Convener Sharma Ashish Ajaykrishna E. C. Representative Parikh Hiten M. Past President Khandwala Mukesh M. Member Shah Paurav Pareshbhai Member Patni Shaleen Suresh Member Jain Pratik Jitendra Care 4U Committee Chairman Shah Monish Suketubhai Convener Patel Hemang Vinodkumar E. C. Representative Parikh Darshan Bakul Past President Doshi Chintan Mukundbhai Member Shah Rajni Mangaldas Member Shah Rutvij Pankajkumar Member Shah Rushabh Mayank Member Merchant Kuntal Rajen Member Shah Mehul Sudhirbhai Member Vashi Diti Bharat Member Sharma Ashish Ajaykrishna Legal And Representation (Direct Taxes) Committee Chairman Sadhwani Satyapal K. Convener Shah Ajitkumar Chandulal E. C. Representative Pamnani Chandrakant H. Past President Shah Sanjay Rasiklal Member Purswani Hardik Member Valecha Abhinav Brijkishore Legal & Representation (Indirect Taxes) Committee Chairman Jain Nitesh Jayantilal Convener Sheth Devam Sanjaykumar E. C. Representative Talati Kushal Umesh Past President Shah Monish Suketubhai Member Prajapati Punit Rasiklal Member Patel Rahul Premjibhai Member Pathak Hiren B Member Vidhwani Jaykishan Kanaiyalal Information Technology Committee Chairman Shah Rushabh Mayank Convener Shah Tarun Bharatbhai E. C. Representative Patel Dipam Arpit Past President Mistry Ketan Ganpatbhai Member Jain Abhishek Jivanlal Member Shah Tarak Rajeshbhai Member Doshi Margik Hitendra Member Mehta Chhayank Shyamsunder Member Ruparelia Tapas Nareshbhai Member Shah Vaibhav Member Mulchandani Homesh Rakeshkumar Publication Committee Chairman Khandwala Mukesh M. Convener Shah Rutvij Pankajkumar E. C. Representative Patel Kaushik C. Past President Shah Shailesh Chandrakant Member Shah Rajni Mangaldas Member Sharedalal Jayesh C. Member Kataria Ashok Chhugamal Association News
120 Ahmedabad Chartered Accountants Journal May, 2023 Cultural and Entertainment Committee Chairman Shah Raju Chandrakant Convener Pujara Mihir Harshadkumar E. C. Representative Choksi Vartik Rohit Past President Pamnani Chandrakant H. Member Jodhani Dilip Umashanker Member Gandhi Amar Rameshbhai Member Shah Uday Indravadan Member Doctor Devang Anilkumar Member Thakkar Deep Kanubhai Member Patel Ashish Manilal Member Rajvaidya Manish Mahendrabhai Member Parikh Mukesh O. Membership Development Committee Chairman Thakkar Deep Kanubhai Convener Shah Hardik Hemendrabhai E. C. Representative Patel Dipam Arpit Past President Shah Kunal Ashwinbhai Member Bhoti Kairav Pankajkumar Member Manchhani Amit Samandas Member Patel Hardik Member Ranka Karan Ramesh Sports Committee Chairman Parekh Jay Bharat Convener Dharwal Sachin Kumarpal E. C. Representative Talati Kushal Umesh Past President Shah Ajitkumar Chandulal Member Desai Maulik Sharadbhai Member Shah Uday Indravadan Member Shah Hirak Prarthan Member Malaviya Abhinav Anandkumar Member Chaudhary Samirkumar Sajjankumar Member Vyas Kashyap Jayendrabhai Member Manchhani Amit Samandas Member Sharma Ashish Ajaykrishna Member Padshah Sulabh Ureshkumar Member Patel Hemang Vinodkumar Study Circle (Direct Tax) Committee Chairman Hirani Utsav Bharat Convener Sharma Jay Dharmendrakumar E. C. Representative Shah Jignesh Jaswantlal Past President Sharedalal Jayesh C. Member Balani Mohit Rajendra Member Dixit Dipesh Dipakkumar Study Circle (Indirect Tax) Committee Chairman Shah Bishan Rameshchandra Convener Vithalani Akshat Suryakantbhai E. C. Representative Parikh Darshan B. Past President Shah Ashwinkumar Himatlal Member Joshi Parth Rajan Member Ruparelia Tapas Nareshbhai Member Shah Jainman Member Agarwal Neerav Atulkumar Member Shah Labdhi Niravbhai Member Chhajed Hem Mahesh Member Shah Parshva Satishkumar Member Kothari Tarang Ramniklal Member Shah Priyam Rameshbhai Member Vaja Rashmin Shashikant Member Shah Gunjan Himanshu Member Soni Jitendra R. Professional Development Committee Chairman Vora Karan Pravinbhai Convener Khandwala Ronak Mukeshbhai E. C. Representative Shah Karan Dhirenbhai Past President Nanavaty Asutosh P. Member Shah Darshan Arun Member Shah Rajni Mangaldas Member Shah Priyam Rameshbhai Member Shah Vivek Samir Member Parikh Ankit Benevolent Fund Committee Chairman Shah Ajitkumar Chandulal Convener Sheth Prakash Bharatkumar E. C. Representative Pamnani Chandrakant H. Past President Choksi Gaurang Mahendrabhai Member Shah Shailesh Chandrakant Mofussil Committee Chairman Shah Tarun Bharatbhai Convener Shah Vaibhav Mayurbhai E. C. Representative Shah Samir Dwarkadas Past President Shah Ajitkumar Chandulal Member Patel Rujul Manilal Member Shah Monish Suketubhai IBC / Bank /Allied Laws Committee Chairman Patel Trupal Jayantilal Convener Shah Sanjay Jitendra E. C. Representative Parikh Hiten M. Past President Vyas Yamal Ashwinbhai Member Shah Sudhir Sureshchandra Member Shah Maitreya Chandrakant Association News
Ahmedabad Chartered Accountants Journal May, 2023 121 4. Forthcoming Programmes: Time Program Speaker Venue 23rd June 2023, Friday 53rd Residential Refresher CA. Manthan Khokhani, Redisson Hotel, Redisson Hotel, Nathdwara from ADV. CA Mehul Patel, Nathdwara 23rd June 2023 to 25th June 2023 CA Vishal Doshi, CA Jayesh Sharedalal, CA Mukesh Khandwala, CA. Kshitij Patel Association News Office Bearers of Chartered Accountants Association for the year 2023-2024. Glimpses of concluded Events Best Article in Ahmedabad Chartered Accountants Journal
Ahmedabad Chartered Accountants Journal May, 2023 123 Association News
124 Ahmedabad Chartered Accountants Journal May, 2023 Across 1. Its always, slow and _______ wins the race. 2. As per Supreme Court judgment in case of Mansukh Dyeing, the word ____________ in section 45(4) takes into its sweep not only the cases of dissolution for firm but also subsisting partners transferring assets in favour of retiring partners. 3. Retail _________ has eased to an 18 month low of 4.7% in April - 2023. ACAJ Crossword Contest - 24 ❉ ❉ ❉ Notes: 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. 3. The contest is open only for the members of Chartered Accountants Association and no member is allowed to submit more than one entry. 4. Members may submit their reply either physically at the office of the Association or by email at [email protected] on or before 20-06-2023. 5. The decision of Journal Committee shall be final and binding. Prize Courtesy Winners of ACAJ Crossword Contest – 23 1. CA. Yash Shah 2. CA. Nilpa Shah ACAJ Crossword Contest 23 - Solution Across: Down: 1. Promoter 4. Economic 2. New Delhi 5. Interest 3. Quasi 6. Robotic Down 4. The subsidized deduction made by the company from the employees who are availing ___ in factory / office would not be considered as ‘supply’. 5. 53rd RRC of the Association is to be held in this city. 6. A Housing society shall be required to pay GST on monthly subscription / contribution charged from its members if such subscription is more than ________ thousand five hundred rupees. 5 1 5 2 3 4 6