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Present Scenario of Economic Activities and Growth in Corporate Affairs Sector: At a Glance

Undoubtedly ! Credit plays an important and vital role in improving agricultural production, productivity and thus, mitigating the distress of the Indian farmers. Since, the Coop­erative Credit Societies (CCS) have been an important sources of credit to the farmers. The Commercial Bank have been active in giving credit to the farmers, which has led to increase in rural bank branches. The Govern­ment of India has adopted a ‘Policy of Multi-Agency Approach’ in agricul­tural credit. Presently, primary Agri­cultural Cooperative Societies; Land Development Banks; Commercial Banks; Regional Rural Banks etc. are financing agriculture. NABARD (National Bank for Agriculture and Rural Development-established on 12th July, 1982 has been playing a key role in promoting agriculture sector, through various financial schemes; so as to promote agriculture and income of the farmers. Presently, KCC (Kisan Credit Card) Scheme introduced in August, 1988 for short and medium term loans; Warehouse Infrastructure Fund (WIF)—loans to Public and Private Sectors for construction of warehouses, silos, cold storage and other cold-chain infrastructure; Special Project Unit-Kisan Credit Card (SPU-KCC)-set-up in January, 2013 by the NABARD for encourag­ing Cooperative Banks and Regional Rural Banks across the country to issue KCC Debit Cards, International Co-operation etc., for which Ministry of Cooperative Affairs (GOI) plays a significant in coordinating and orga­nizing interactions with other coun­tries etc. are an important components of the Ministry of Corporate Affairs (MCA, GOI).

Based on the Annual Report 2014-15 of the Ministry of Corporate Affairs      (MCA—Government          of

India—GOI), several achievements were made through various pro­grammes and activities during the year, those can be highlighted in brief as—

Major Achievements

  • Organizational Set-up/Infra- structure and Functional Activi­ties of the Ministry of Corporate Affairs (MCA-Government of India—GOI.)

Under the Ministry of Corporate Affairs (GOI), the supreme post is of 1-Secretary and under the Secretary, several posts namely— Additional Secretary, Joint Secretary, Directors, Additional Director etc. works accordingly as per the norms and conditions of the MCA.

[1] [2] Functional Activities—Admini­stration of the Companies Act, 1956; Dissemination of Official Statistics related to the Corporate sector; Implementation of e- Governance in MCA; Protection

Facts : At a Glance

Corporate Affairs Related
Activities and Achievements

and Investors awareness, edu­cational programmes etc. and with the Mission—responsive in business environment, suitably formulate, modify Corporate Laws and Regulations from time to time and Vision to facilitate Corporate growth and enligh­tened regulation etc. activities.

-► Composition of Active Com­panies—Broad            Sector-wise—

The economic activity-wise distribution of active Companies as on 31st March, 2004 was remained 61% Service, 36% Industry and 3% Agriculture.

  • During the year 2014-15, Com­position of active Companies- (detailed Sectorwise)—w.e.f.

1957 to 2014 (58 years), Com­panies numbers are increasing in the economic development of India continuously and playing an active role, those can be expressed as—

Allied Sector was registered. Since, Agriculture is the source of about 70% of rural population. Therefore, theje is a dire need to increase agriculture and allied sector’s share in 21st Century. During the year 2013-14, the total foodgrains production was achieved highest ever i.e., 265-04 million tonnes v/s 252-68 in 2014- 15, which reduced 1-5% (|) due to Rabi season rainfall. In future, agricultural based industrial sector needs emphasis e.g., dal/ besan chakki establishment, oil industry, grain flour mills; vege­tables/ flowers/ fruits industry. -* Neem based industry-Oil and Cakes; so as to provide labour employment and finally for improving their socio-economic status. Since, Neem (Azadirachta indica) is the origin of India— ‘Neem Year 2005’ celebrated, which can be used for bio-insecti­cides formulation from all 5 plant parts-roots, stem, leaves, flowers and fruits/seeds in agriculture- pest control.

“» Growth of Corporate Sector in India—The Corporate Sector has played its active role alongwith continuous growth of companies numbers in the country w.e.f.

1957 to 2014 (as on Dec. 31, 2014) within about 58 years, those can be expressed as—

Year/Item Companies No.’s (Limited through share)
1957 29,357
1977 45,866
1987 1,40,670
1997 4,50,950
2010 8,35,860
2011 7,14,555
2012 8,00,760
2013 9,52,433
2014 10,07,637

 

(Companies No’s)
Above figures clearly indicate that within about 58 years of the country, the companies large numbers have been increased in Corporate Sector at National level, providing labour employ­ment through ‘Companies Act, 1956’ and its administration. Indian Institute of Corporate Affairs (IICA)—Registered as a Society in 2008 under the ‘Societies Registration Act, 1§60’. It is an autonomous , Institute under the aegis of the Ministry of
Activity, upto Dec. 31, 2014

Sector %age
Agriculture and Allied Activities 1-8
Mining & Quarrying 0-6
Manufacturing 10-1
Electricity, Gas & Water Companies 0-6
Construction 11-7
Trading 10-8
Transport, Storage and Communication 2-0
Finance/Insurance and Real Estate & Business Services 53-7
Community, Personal & Social Services 8-7

 

Corporate Affairs (GOI), estab­lished as a ‘think tank’, action research services delivery and capacity building Institute to serve the Ministry as well as local communities for effective contri­bution towards sustainable growth and development. A Cooperation Agreement is to be signed sortly between Indian Institute of Corporate Affairs (IICA) and International Finance Corporation (IFC) for streng­thening Corporate Governance in identified companies in the country.

Investor Education and Protec­tion Fund—The Investor Educa­tion and Protection Fund (IEPE)- set-up under ‘Sector 205 C of the Companies Act, 1956’ for sup­porting activities related to inves­tor education, awareness and protection. Under the Com­panies Act, 2013, the Investor Education and Protection Fund Authority will be set-up to administer the fund of the MCA (GOI).

Limited Liability Partnership (LLP) Act, 2008 related activi­ties—The role ‘LLP Act, 2008’ is

to create a facilitating environ­ment for entrepreneurs, service providers and professionals to meet the challenges of global competition. The ‘first LLPs’ was registered on April 2, 2009. The Economic activity-wise classifica­tion of LLP-as on 31st Dec., 2014 reveals that service sector account for over 83% LLPs, which can be expressed as—

(LLPs Registered by Economic

Above figures on economic activity-wise classification of LLPs as on Dec. 31, 2014 reveals that Finance, Insurance, Real Estate & Business Services accounts about 54%.

One Person Company—Under Companies Act, 2013, during 2014-15 (upto Dec. 31, 2014), a total of 1,403 one Person Com­panies were registered with collective authorized capital of ? 31-13 crore, which are working for economic activity 1-5% com­panies in Agriculture and Allied activities, 55-3% in Business services (maximum) etc. sectors. Companies (Donation to National Funds) Act, 1951 Activities—The National Gandhi Memorial Fund (NGME) and the Sardar Vallabhbai Patel National Memorial Fund (SVBPNMF) have been approved by the GOI, making them eligible to receive donations. The Act-enacted in 1951, enables any company, not withstanding anything contained in the Companies Act to make donations for charitable purpose as approved by GOI. On 31st Oct; Birth Anniversary of SVB Patel and Nation observed ‘Rashtriya Ekta Diwas’ were celebrated.

  • Other activities of the Ministry of Corporate Affairs (MCA)—
  • * Rashtra-Bhasha—The MCA (GOI) continues to enhance its efforts for promoting the use of Hindi in officialiwork. During the year 2014-15, ‘Hindi Fort­night’ w.e.f. Sept. 12-26, 2014 was celebrated through many com­petitions Hindi workshops, (June 2, 2014) Hindi speaking officers/employees etc. activities. International Cooperation— ‘IICA’ (Indian Institute of Corpo­rate Affairs, GOI) and Institute of Directors (IOD), U.K. entered into an MoU to promote objec­tives of improving Corporate Governance of India, so as to leveraging the expertise of IOD. The Cooperative Agreement bet­ween IICA and IFC (Inter­national Finance Corporation) will be signed shortly for stren­gthening Corporate Governance in identified companies in the country.

 

Objective Questions

-♦ Investor Awareness and Pro­tection—A large number of Investor Awareness Programmes were conducted during 2012-13 e.g., 1985 programmes in 2012-13 and 2900 programmes in 2013-14 with the partnership of 3 profes­sional Institutes i.e., ICAI (Institue of Chartered Accoun­tants of India); ICSI (Institute of Company Secretaries of India) and ICAI (Institute of Cost Accounts of India), so as to educate investors, including young investors.

Statistics Division—It looks after issues relating to improvements of Corporate Statistics, generated from the MCA-21 Portal (includ­ing in XBRL mode, shares statistical information on the Corporate Sector with CSO, RBI, SEBI and others, as and when necessary.

Summary

Based upon the several activities done in the field of Corporate Affairs during the year 2014-15 by the Ministry of Corporate Affairs (MCA- GOI), it can, thus, safely be summ­arized in nutshell as—

  1. IICA (Indian Institute of Cor­porate Affairs) Manesar Campus (Gurgaon, Haryana) estd-April 13, 2012 under the Ministry of Corporate Affairs (MCA-GOI) headed by D.G. is playing a vital role to serve as a ‘Holistic- Think-Tank’ and Capacity Building, Service Delivery Institution through Synergized Knowledge Management. ‘IICA’ is also helping in continuous improvement of Service Delivery Mechanisms in diverse areas like; MCA-21, investor education and protection etc.
  2. LLPs (Limited Liability Partner­ship) Registered by Economic Activity, 2009-2014 (6 years duration) reveals that service sector accounts for over 75% LLPs, however, Agriculture and Allied Sector Activities remains
  • 8% only, which needs to improve through agricultural based industrial sector-i.e., on fruits, vegetables, flowers, cereals, pulses, oilseeds, medi­cinal, aromatic plants cultivation,
    biopesticides etc; so as to improve socio-economic status of farmers.
  1. The economic activity wise dis­tribution of active companies as on Dec. 31, 2014 indicates the 2-5% Agriculture Composition of active companies as broad sector- wise needs to improve V/S 61% service and 36% industry sector. Besides these, there are other several achievements made during the year.

Memorable Points: Related
to Corporate Affairs-
National & International
Cooperation Initiatives

 

decisions of CCI (Competition Commission of India), was established on October 14—

  • 2002 (B) 2003

(C) 2004            (D) 2005

  1. As per the composition of Active Companies : Economic Sector- wise, the share of Agriculture & Allied Activities is—
  • 2-5% (B)     4-0%

(C)    5-0%         (D)    Above 5-0%

  1. In Economic Sector, the maxi­

mum share of Business Services with regard to composition of active companies is (about)…. %.

  • 25-7 (B)     30-0

(C)    32-0          (D)    35-0

  1. In India, the percentage of Indus­

trial units of Small and Medium Enterprises (SMEs)—working under the Ministry of Corporate Affairs-MCA, GOI) is about—

  • 75% (B)     80%

(C)    90%          (D)    95%

Answers

  1. (D) 2. (B) 3. (A) 4. (A) 5. (D)
  2. (D) P.Darpan

Continued from Page 101

In a paper released this week in the journal Nature Materials, a Canadian team of researchers des­cribe how tiny scaffolds, made up of 3D-printed layers of a biodegradable and biocompatible polymer known as POMaC[3] [4], provide the architecture for miniature versions of real-life hearts and livers.

Each chip, about the size of a thumbnail, is perforated with micro­scopic channels that, once the whole thing is submerged in a bath of living cells, act as the mini-organ’s internal blood vessels. In time, the heart or liver cells latch onto the structure and grow and eventually behave in the same way they would in the human body. Injected with clinically relevant drugs through their network of blood vessels, the Angio Chips were shown to process drugs in the same way organs would in the actual human body. Like puzzle pieces, the Angio Chips and their vessels can also be attached to each other, effectively creating a tiny model of an inter­linked lung and heart.

  • ‘Cost and Works Accountants Act, 1959’—Changed now as Cost and Works Accountants (Amendments) Act, 2011—the Institute of Cost Accountants of India (ICWAI)
  • ‘Indian Partnership Act, 1932’—for Registration of Firms with Income Tax Act.
  • The ‘Company Secretaries Act’ was

enacted in 1980 to regulate and develop profession of Companies Secretaries as well as to establish Institute of Company Secretaries of India.

  • Societies Registration Act—1860 for registration of literary, scientific & charitable societies to improve their legal status.

[2]    The Companies (Donation to National Funds) Act—enacted in 1951.

  • GNMF (Gandhi National Memorial Fund) and SVBPNMF (Sardar Vallabh Bhai Patel National Memo­rial Fund)—approved by GOI mak­ing them eligible to receive dona­tions.
  • MCA—(Ministry of Corporate Affairs-GOI) Hq. New Delhi (est. in 1956)-Celebrated its 58th foundation year in 2014 (March 31).
  • 7-Regional Directors’ Offices of MCA (GOl)-Ahmedabad; Chennai; Guwahati (Presently functioning at Shillong); Kolkata; Hyderabad; Mumbai and NOIDA-functioning properly.
  • ‘MCA-21’-an e-Governance Project entered its Second Cycle in Jan., 2013 for which, Infosys-as new service provider and MCA launched its pioneering e-Governance initia­tive MCA-21 in January 2007.
  • Competitive Appellate Tribunal (COMAT)-under ‘Competition Act, 2002’-est. on Oct. 14., 2003.
  • IICA (Indian Institute of Corporate Affairs, GOI)-a Registered Society in 2008-Serve as ‘a Holistic Think- Tank’ & Capacity Building Service Delivery Institution, Manesar (Har- yana)-working for the Corporate Growth.

[4]       LLP (Limited Liability Partnership) Act, 2008-notified on January 9, 2009 First LLP-registered on April 2, 2009.

  1. The Central Coordination and Monitoring Committee (CCMC) under the MCA (Ministry of Cooperate Affairs, GOI) & SEBI (Securities & Exchange Board of India) was set-up in—
  • 1990 (B) 1991

(C) 1992            (D) 1999

  1. The Competition Appellate Tribunal (COMPAT)—functio­ning under the ‘Competition Act, 2002’, with powers to entertain appeals against directions

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