Leveraging New Age Economy Opportunities for Company Secretaries

Pavan Kumar Vijay, Managing Director

Recalling my last visit…

I came Calcutta to discuss

Segment wise role of a Company Secretary

But

In this

New Age Economy

Is it all about???

“In this fast changing world…

opportunities are unlimited …,

and future belongs to those …

who grasp these opportunities before they become a

necessity.”

New Age

Economy

New Age Economy

Simplified Lawe- Governance

Globalization

Single window

Interface

Common Law

Globalization

What is Globalization

IntegrationInteraction

LawsCompaniesBusinessPeople

Thus, it is a process driven by international trade and investment

and aided by information technology

Impact of Globalization

In WTO regime, Globalization will lead to

Commonality of Law

And

Common Law will lead to

Global Competition

Globalized Scenario

Corporate Governance

Common Regulatory Framework

Global Outsourcing of services

Global work culture

Quality of Competition

Globalization Challenges

Quality of Service

Time Commitment

International Operational Infrastructure

High degree of competition among professionals

Adherence to International standards

e- Governance

What is e-governance?

For increasing

Efficiency

For Simplification

of Laws

Use of Information Technology

Service DeliveryUniformity &

Transparency

Impact of e- Governance

Simplified Laws IT Driven Services

Simplified Laws

IT Driven Services

Shift of Focus

Procedural Compliances

Strategical Planning

e-governance & IT Scenario

Seamless Integration of International Markets and all Market

Participant enabling trading

From anywhere – Small village to big cities

At anytime – Early morning to midnight.

In any manner – Internet, Mobile, PDA, etc

24 X 7 Online Services

Real-time Due Diligence, Rating and Compliances

Global Data Banks

IT Driven regulatory procedures

Minimization of procedural steps

IT Driven compliance services

Global services

Minimization of Non-compliances

Strategic Role of all professionals

Impact of e-governance

Single –window Interface

Single window interface

implies

All services under one

umbrella

Single Window interface call for Synergy of

Brand

Knowledge

Capital

Infrastructure

Collaboration is the buzz word …

Quality

of

Service

Corporate

LawsEconomic

LawsTaxation

Laws

WTO & IPR

International

Trade Law

IT & BPO

Management

Consulting

Finance and

Accounting

Commerce

Brand

Synergy

Infrastructure

Synergy

Capital

Synergy

Collaborative Commerce

Single

Window

Interface

Knowledge

Synergy

Global

Presence

Growing

Revenues

Growing

Customers

Growing

Nations

CS + CA +

CWA + MBA

+ LLB

“Problems becomes opportunities,

when right people come together …”

Enhanced Capability to compete with Global giants

Global Reach

Brand leverage

Wider Area of Expertise

Risk Minimization

Active Networking and Public Relations

Attraction of best talent

Advantages Collaborative Commerce

In the emerging scenario of ..

Globalization,

Common Law,

e-governance,

Simplification of Laws &

Single Window interface …

“Opportunities are unlimited …”

“And

Success will come only when

preparation meets opportunity…”

New Age Economy

Globalization of business

Many opportunities but severely competitive

New skills / competencies involved

Technology impact on business

Reshapes value chains

Consolidation of services

Business process integrity

Legal & Regulatory Environment

Change in Existing Laws

Enactment of new Laws

Corporate Environment

Forms of Business

Concepts of Business

How do Professionals see this New Age Economy?

Threat

Thre

at

Thre

at

Threat

Pessimist Perception

Threat of Invasion of Service Sector by Foreign Giants

Opportunity

Op

po

rtun

ity

Op

po

rtu

nity

Opportunity

Optimist Perception

Decide your Way

My Way

No Way

“I can do it … I can’t do it

Both are right”

- Henry Ford

Its all a matter of Attitude

Attitude is a small thing that can make

Big Difference

Only 10 % of

the Iceberg is

seen above

the surface

90% of an

iceberg is

below sea

level

Only 10 % of

your

positivity is

seen above

the surface

90% of an

positivity is

below the

surface…

How much do you see of an iceberg?

Do you Know??

Change you Attitude

Break the Boundaries & See the Opportunities

Opportunities in new Age Economy

Corporate Compliance

Management

Corporate Governance

Setting up Business India

Globe

Limited Liability Partnership - LLP

Competition Commission of

India -CCI

Valuation

JV Agreement

SEZ

Carbon Credit

Derivatives

Forex Future

But

These Opportunities are not available to

Company Secretaries.

These are available to CS Professionals.

Not Company Secretaries…

But, CS Professionals …

What is the difference???

Who is a PROFESSIONAL?

Business/ Products of Organisation

Legal Constitution

Applicable Laws

Mu

ltid

iscip

lin

ary

Kn

ow

led

ge

Organisation Structures

Specialty of Organisation/Industry

Business Scenario Domestic/ Int’l

Privileges and Exemptions

Integrity

Independence

Innovation

Excellence Pro

fessio

na

lism

Today‟s is the World of Specialization…

And We Require Industry Specialized Professionals

For this a CS Professional is the

most suitable person

Why ???

Information

Technology

Marketing

Production

And operations

Human

Resources

Corporate

Communication

Finance and

Accounts

Legal

Corporate

Planning

Law + Management

Knowledge of …

CS

Professional

Corporate Laws

Commercial Laws

Taxation Laws

Accounting Laws

Securities Laws

Corporate Restructuring &

Insolvency Laws

Economic & Labour Laws

Financial, Treasury &

Forex Management

Strategic

Management,

Alliances &

International Trade

Governance, Business

Ethics & Sustainability

Due Diligence &

Corporate

Compliance

management

Law + Management

Lets have a look at Course Curriculum …

Corporate Compliance Management

Corporate Compliance Management

is nothing but the

Opportunity

Lying in

„Compliance of All applicable laws‟

Present Status of Compliance Services

•Company LawHigh

• Listing Agreement & Securities Laws

Medium

•All other LawsLow

Applicability of Laws

General application of laws

Sectoral applications

Industry / Segment applications

Geographical applications

Number of Employees

Transaction applications

Corporate Governance

“CORPORATE GOVERNANCE

is creation of a culture of

consciousness, transparency and openness.

It refers to combination of laws, rules, regulations, procedures and

voluntary practices to enable the companies to maximize the long-term

shareholders value, customer satisfaction and wealth.”

Significance of CG

Transparency in

operations

Consciousness to

adopt best

practices

Confidence of

domestic &

international investors

Easier Access to

capital (FII, VCF,

Foreign Markets)

Entry of Best

Talent & Skill

International

Tie-ups

Widened

opportunities of

services

GLOBAL

GROWTH

Creation of Brand

Image

Higher Valuation

corporategovernance@SATYAM

Business Set-Up

Incorporation – India & International

New forms of Business Entities

Explore Tax Heavens

International Tax Planning

International Listing

LLP – Limited Liability Partnership

LLP provides corporate organization to compete internationally on

level playing field.

Best suitable for knowledge based enterprises and other small and

medium enterprises.

Provides enhanced risk taking capability

Provides enhanced reach.

CCI – Competition Commission of India

Advisory in M&A transactions, JV Agreement.

Representation before Competition Commission of India on behalf of Complainant,

Defendant

VALUATION

M & A

BUSINESS VALUATION

FOREX DEALS VALUATIONS

ESOP VALUATIONS

Valuation

SEZ

Establish New parks in Tier II & III cities

Leverage Government resources to create the necessary infrastructure

Attract new industries.

- Duty-free imports of capital goods and inputs for production for Export

- Liberal access to foreign exchange

- Encouragement to FDI

- Simplified, “one-stop” approvals

- Generous tax concessions esp. in early years

- Flexible Labour Laws

- Limitations on sales within the country

- Better Infrastructure (Power, Transport & Communications)

Carbon Credit

Carbon credits accrue from range of sectors…

Clean coal

technologies

Combined cycle

natural gas

Renewable

energy

Municipal solid

wastes

Energy efficiency

Waste to Energy

projects Small hydro

Fuel switch in

transportation

India

Derivatives

Types of derivatives.

Futures

Forwards

Options

Swap

Forex Future

Trading on the basis of fluctuations in foreign Exchange Prices

24-hour forex trading

Superior liquidity

100:1 Leverage in forex trading

Lower transaction costs

Equal profit potential in both rising and falling markets

Another unrealized fact …

In the New Age Economy,

all opportunities will be leveraged only

through

Information Technology

Technology initiatives ….

The challenge - Requires unique blend of Legal and Technological aptitude

One time investment adds significant value

Increased efficiencies possible

“Shared services concept”

Centralised infrastructure with decentralised operations possible

“Adopt technology to defeat technology”

is the latest survival mantra ….

Go IT …

Go IT …

Reduce time consumption in repetitive tasks.

Devote more time on Strategic analysis, value additions and

planning.

Use on-line regulatory services.

Make use of exhaustive databases, checklists, research papers

available online.

Manage multiple tasks through IT.

Use IT for public relations and branding.

Example

Its not just words, It is now reality …

A hottest start – up

(Business Model)

Learning

The 80:20 Theory

80%

20%

Filing forms & Applications

Registers & Returns

Checklists

Strategy

Management

Research

Present Focus of Services

Focus of services in emerging Scenario

20%

80%

Filing forms & Applications

Registers & Returns

Checklists

Strategy

Management

Research

Shifted Perception about CS

• Filling and Filing of Forms

• Drafting of Notices, Minutes

• Preparation of Checklists

Secretary

• Compliances of Company and Securities Laws

• Follow-up and Co-ordination with Regulatory Authorities

Compliance officer

• Business Planning

• Management

• Research

• Innovation

Strategic Planner

Need of the Hour …S

kill

Develo

pm

ent

Career Progression

Always think big

There is no price for dreaming Big or Small

So, why not dream Big

And all your dreams will come true

If you have the courage to pursue them

The story about the tiny frogs....

There once was a bunch of tiny frogs,...

... who arranged a running competition.

The goal was to reach the top of a very high tower.

A big crowd had gathered

around the tower to see

the race and cheer on the contestants...

The race began...

Honestly:

No one in crowd really believed that the

tiny frogs would reach the top of the tower.

You heard statements such as:

"Oh, WAY too difficult!!

They will NEVER make it to the top."

or:

"Not a chance that they will succeed.

The tower is too high!"

The tiny frogs began collapsing. One by one...

... Except for those who in a fresh tempo

were climbing higher and higher...

The crowd continued to yell

"It is too difficult!!! No one will make it!"

More tiny frogs got tired and gave up...

...But ONE continued higher and higher and higher...

This one wouldn't give up!

At the end everyone else had

given up climbing the tower.

Except for the one tiny frog who after a big effort

was the only one who reached the top!

THEN all of the other tiny frogs naturally

wanted to know how this one frog managed to do it?

Contestant asked the tiny frog how the one

who succeeded had found the

strength to reach the goal?

It turned out...

That the winner was DEAF!!!!

It turned out...

That the winner was DEAF!!!!

The wisdom of this story is:

Never listen to other people's tendencies to be

negative or pessimistic...

...cause they take your most wonderful dreams and

wishes away from you....

The ones you have in your heart!

Always think of the power words have.

Because everything you hear and read

will affect your actions!

Therefore: ALWAYS be...

POSITIVE!

And above all:

Be DEAF when people tell YOU that

YOU can not fulfil YOUR dreams!

Always think:

I CAN DO THIS!

Problems can either Make You or Break You

The hammer that can break glass can shape steel

Its up to you to be Glass or Steel

Have the willpower of Steel and the vision of Glass

Last Fact …

In this New Age Economy

It is not the Strongest and the most Intelligent person

survive,

But the one who is responsive to “Changes” will

survive.

Finally,

Opportunities have knocked your door …

But still …

You have to get off from your seat and open

the door….”

… and if Opportunity does not knock your

door….”

First of all, build the door….”

Thank You …