WOMEN RISE & protect yourself from Rape… Don’t expect anything.

Pornography followed with sex discussion are the now the most demanding phenomena to join in any group particularly within the range of 12 to 50. My readers might not agree with the age bracket but when we travel in bus or train, we all witness this is the most common way of gestures. Smart phones have opened the doors of nudity to new heights as videos of pornography are often travelling in openly.  In my recent observation its being found that discussing about sex and sharing videos of pornography are the growing culture of the society. Media has also played a dignified role while displaying nudity in Television and Indian cinema’s.   Well it’s very easy to copy different cultures but very hard to paste the same in the Indian closed society system.

The time has come where its being proved that our political candidates and our social hero’s needs to be well educated and understand that today’s population is not under educated and smart phone has expedited the shape of media awareness.  Then recent historic growth of rape in India and across the globe makes it very clear that “No place on earth is safe for women”. But the rates at which the rapes and murders are happening women of this decade and in the coming decade’s women are going to carry weapons in their bags while travelling. When government and police is not able to provide security and Indian legal system is not structured enough for the speedy process of the punishment about rape-in that case women have to carry weapons.  As its being found that after rape no clue or no proper culprit identification is not possible are criminals are smart enough hence women would also become smart enough when they will shoot or kill someone who will try to rape or behave in such manner and no clues will be left by them. The government is forgetting that once common man picks up law in their hand and become animals like the ones who does rape then the expectation from government about proper justice would not be required any more. Before one does rape he is either shot or is being stabbed by the women.   The government inactions and words of the politicians are asking indirectly that women save yourself of your won.

In the recent incidents in West Bengal and in UP we find that both ministers are trying to compete for rape or either making statement that being big state rape is too small. Do his words want to convey that every house in UP one must have a rape victim?

Statistics says many things and will also speak in the future but are we listening. I am not giving any statistical presentation on rapes in different states and making a comparison regarding the same. I am only showing the growth of vulgarism against women. Further it shows that government of individual states is still sleeping like the CM of Karnataka.

·  Uttar Pradesh has recorded a steep rise in the number of rape cases in 2013 as compared to the previous year.

·    As per data tabled in the Rajya Sabha by Minister of State for Home Affairs Kiren Rijiju, while answering a question by Ramdas Athawale, as many as 3,050 cases of rape were reported in Uttar Pradesh in 2013 as against 1,963 in 2012, an increase of above 55 per cent. In 2011, the number stood at 2,042.

·        National Crime Records Bureau (NCRB), every day 93 women are being raped in the country.

·       According to NCRB data, there is a gradual increase in the number of rapes reported in India - from 24,923 in 2012 to 33,707 in 2013.

·      The number of rapes in Delhi has almost doubled from 585 in 2012 to 1,441 in 2013. Delhi is followed by Mumbai (391), Jaipur (192) and Pune (171) among the top unsafe cities in the country.

·         It is also revealed that most victims are aged between 18 and 30 years (15,556) and 14 and 18 years (8,877).

Well every state has rapes and no state is bothered to make a clean environment for the same.

The recent words of Trinamool Congress MP Mr. Tapas Pal, where he clearly said that he will send his TMC party members to go into each house and do rape. Please find the video of the same where he openly promotes rape. https://www.youtube.com/watch?v=16sDknXjD2E. In another video you will find  comparison of rape number growth  by UP Ex-CM and Currently His son is the CM of the State. https://www.youtube.com/watch?v=phZUkDFAtRE

 If these are our political choices then obviously we should not expect them to understand the pains of rape and the values of women. It’s not about who said what but it about the thought process of these politicians and their lookout towards the rape. We seek justice from these people. Do we really get justice.

The question is not about how many rapes are happening in India and across the world and giving an elaborate statistical comparison. The point is that if India could fight for 90 years to get independence then why not stop rape and form stringent legal punishment against rapists. Why can’t we control the pornography?  Why can’t West Bengal or UP don’t become rape free states. Or the state governments is satisfying and promoting rape for their party workers so that get boosted up and do all illegal works which will help these political candidates to win their position back again.

Well all I see is that politician are busy to satisfy the sexual demand of their party members through rape. But they are forgetting that a time will come when their own fruits will be consumed by themselves. Women rise and protect you.

Opportunity for the Consultants in India for European SME

When the global economy says that the European economy is growing and is out of the recession I have several doubts on the same. SME segment of any economy is the backbone and real growth of an economy comes when this segment grows. But with the financial meltdown of 2010-2012 the situation of this segment is critical in term of getting funds from the Banks. In my research I find that as India plans for a GDP growth of 8% above over the next 3 years and plans to bring down the fiscal deficit I find there is a substantial opportunity to entering into JV with Euro zone SME segment to enhance and strengthen the lucrative business opportunities of the Euro Zone. Even after capitalizing banks this segment is still struggling to get credit and this place where private equity and all other alternative source of capital come into play. SMEs in Euro-zone account for two-thirds of employment across Europe and their health is central to the region’s development of economic growth. But the higher cost of credit and the contraction of its availability are reducing the growth prospects.

A quick look at the Bank rejection and opportunity ahead:

·         In total about one third of the SMEs surveyed did not manage to get the full bank loan financing they had planned for during 2013.

·         13% of their loan applications were rejected and 16% of companies received less than they applied for.

·         The highest rejection rate was among micro companies employing fewer than 10 people (18%) and among SMEs which had been active for less than 2 years (28%).

·         In comparison, only 3% of loan applications from large enterprises (those with 250 or more employees) were rejected problem by 40% of SMEs in Cyprus, 32% in Greece, 23% in Spain and Croatia, 22% in Slovenia, 20% in Ireland, Italy and the Netherlands, compared with 7% in Austria, 8% in Germany or 9% in Poland.

·         Rejection rates for loan applications were also highest in Greece and the Netherlands (31%), followed by Lithuania (24%). Ireland (16%), Greece and Cyprus (15%).

·         Half of the loans obtained in the last two years were for less than € 100 000. SMEs are still strongly dependent on bank financing. 85% of loans in the past two years were provided by banks.

·         SMEs perceived difficulty to access to finance differently from 40% of SMEs in Cyprus, 32% in Greece, 23% in Spain and Croatia, 22% in Slovenia, 20% in Ireland, Italy and the Netherlands to just 7% in Austria or 8% in Germany and 9% in Poland.

·         Now as banks are rejecting the credit off take private segment finds a substantial opportunity.

·         Equity financing was more likely among larger SMEs (rising from 4% among those with only 1-9 employees to 7.5% among those with 50-249 employees).

·         Those with the highest revenue levels (11% for SMEs with more than euro 50 million). It was also more likely among SMEs that have been established for at least 10 years (9%) and SMEs in the trade sector (15%).

·         Not surprisingly it was most common among SMEs partly owned by venture capital or business angels (21%).

Now the biggest problem for these companies to get is that they are not getting clients for their business and this problem is increasing day by day. Stringent austerity measures in their own economy has resulted significant drop in consumption and lack of opportunity. Hence it’s a huge opportunity for the consultants in India to get these SME good platforms in India in term of clients in the form of JV and partnership and also getting them capital. Currently India is going to be in the path of significant roller coaster ride of GDP growth hence expansion and development of the business across all industries is the demand of the future. So help out these SME’s and develop strong business opportunity for India as well as for the European SME. The graphic chart shows the trend of problems being faced by the European SME and the opportunity in those areas. On the other hand if you observe you will find that there is a substantial growth in other external financing and subsequent growth in the Bank but banks are unable to full fill the business opportunities. The proportion of SMEs in the EU applying for bank loans or trade credit in 2013 was similar to 2011 levels, but application levels for other external financing has risen from 10% in 2011 to 14% in 2013.Small and medium-sized businesses in the peripheral euro-zone are being “starved” of credit, paying interest rates on bank loans up to three times higher than German SMEs.

In my research I find that SMEs fund requirement in the form of fixed investment and inventory and working capital as the main source of their increased financial needs, while the opposite was true for Germany. At the same time, euro area SMEs also reported, on balance, a somewhat higher need for external financing resulting from insufficient availability of internal funds (5%, up from 3%). At country level, the highest net percentages of SMEs reporting an increase in their need for bank loans were again recorded in Greece (30%) and – to a much lesser extent – Italy (14%) and France (12%). Hence it’s well clear that India has got substantial business opportunities to get Euro zone business to form JV in India and develop and market products. Price negotiation and competitive business opportunities are the key trigger for entering into JV based upon the current situation.

Fiscal Deficit & Cost Audit Report Negligence

Well India has presented its Budget and billions of analysis has been already executed. Well I find that this budget would be finding a hard place to land due to the recent COST AUDIT & COSTING METHODS abolishment.  Now my readers my say that extrapolating and trying to mix cost audit in everything I write. The point is this that abolishment of cost audit and costing accounting would be having a longer affect and slow poising affect on the Indian economy which may not be visible in the shorter times frames.   We need to figure out where COST AUDIT Report and COSTING METHODS have not been applied and where the previous government failed to realize the benefits as well the affects of the failures on the Indian industries and Economy. In short I have portrayed the picture of the government to make the COST AUDIT report to be economy developing & Industry developing blueprint.

 Fiscal deficit has become huge problem and going forward there would be more problem. Government did not use the COST AUDIT reports at any point of time otherwise this catastrophic level of fiscal deficit would not have come. COST AUDIT Report helps the government to find which industries need to focus more on domestic resources rather than import. Its well clear that today the LED TV which we have in our homes are imported items and we Indians don’t manufacture them. The Phones which we use and the spare parts related to that are imported items and not domestic manufactured. Now if government should have utilized the COST AUDIT reports then we should have created another Japan in India in terms of hardware technology. This should have created immense job and direct tax & indirect tax revenue for the government. Now the affect of this negligence is that I find that currently companies from these industries   in infrastructure, construction space, irrigation, fertilizer sectors expected payment on their receivables due from government. Moreover with the fiscal deficit target, worries continue to remain as burden on all these companies from these industries.

The profession of COST ACCOUNTANCY is dual profession which helps the Government to build a sustainable economy as well as to the corporate who justify their costing in parallel to the global standards. The level of negligence the Indian government has done to the COST AUDIT Report and COSTING METHODS benefit is that 70% of aggregated balance sheet debt of BSE 500 corporates  (excluding banking and financial services) belongs to net importers. These net importers are also responsible for 76% of aggregated foreign currency (FC) debt of BSE 500 corporate. So the rupee level of 68 is now very much clear.

Now if COST AUDIT REPORT is really used judiciously for an industry this sharp depreciation of the rupee should have been huge advantage for the Indian corporate as well as for the Indian government.   The foreign currency importers companies EBITDA (in INR terms) detoraite by 1.3% for 1% depreciation in the Indian rupee against the US dollar. The challenge for these net FC spenders is aggravated since 17% of their aggregated debt is foreign currency debt, which also accounts for 76% of aggregated FC debt of the BSE 500 corporates. On the other hand 47 % of BSE 500 corporate are net FC earners and they are estimated to enjoy a 1.6% increase in EBITDA (in INR terms) for 1% INR depreciation.

On the other side the government is well aware that inflation might not come down hence corporate would find difficult to manage their cost of capital for expansion. Hence the smartest move was   to extend withholding tax at the rate of 5% on all bonds issued by Indian corporate as well as liberalizing the procedure for ADR/GDR issuances supports the endeavor to attract foreign capital. Now with the removal of COST AUDIT and COSTING Methods it would be quite difficult in the long term to use a standardized costing methods as well as in countries where ADR and GDR would be raised they are having cost and management accounting reports as their best practices in the financial segment. Now lack of uniform methods would lead to confusion about the process of treating various cost and expense leading difficulty for the corporate to raise capital in the long term.

Now the most interesting part of my research is that COST AUDIT Removal and COSTING METHODS have been abolished are the ones who will are currently suffering pains and going forwards would find more pains. The below data shows the As of FY13, 221 of the BSE 500 corporate have negative sensitivity. Their operating margins are likely to suffer in the event of sustained rupee depreciation. These corporate account for 70% of the aggregated balance sheet debt of the BSE-500 corporate.

Now lets us map the industries where COST AUDIT report have been abolished with the long term affect of the Industries related to the fiscal deficit, rupee depreciation and negligence form the government to understand the benefits of the COST AUDIT report. Well the problems would aggravate more in the long term by removing the COST AUDIT completely.

Consumer Durable: These sector corporate flows have been consistently deficit since FY07. The corporate deficit reduced in FY13 to INR45bn from INR58.4bn in FY12 driven by a 20% reduction in total outflows in FY13. Majority of the outflows are on account of imports by companies such as Voltas Ltd (finished goods, components, spares), Whirlpool Ltd (import of components like compressors) accounting for 92%-96% of the total FC outflows. Now these companies are India is assembling plants and Indian government gave less focus to domestic manufacturing of these spare parts etc. This is the place where the government failed to adopt the results of the COST AUDIT Reports. The sensitivity change ranges from -2.6 to -3 for FY12-FY13.

FMCG: This sector is largely immune to foreign exchange volatility mainly due to sector„s proportion of forex revenues to total revenues and proportion of foreign expenditure to total expenditure is very low. Hindustan Unilever Ltd (HUL), ITC Ltd and Nestle Ltd together contributed between 72.1%-72.9% during FY11-FY13. ITC recorded nearly 47% yoy increase in outflows in FY12, driven by an increase in the import of capital goods (INR7.05bn). While HUL posted a 27% yoy decrease in outflows in FY12, Nestle‟s outflows more than doubled (increase by 104% mainly on account of increase in the import of capital goods to INR7.2bn from INR1.1bn) yoy in the same year. Now ignorance of COST AUDIT report has resulted import of capital goods into the country which could have been domestically manufactured strengthening the Indian economy in engineering industry.

Auto Suppliers: has seen consistent net deficits since FY07. Over the years the deficit has widened to INR67bn in FY13 from INR15bn in FY07. Imports account for around 84%-85% of the outflows in FY11-FY13. Hence its very well clear that India is an assembling plant and not an base of manufacturing spare parts are still being imported and even the replacement market import of automobile spare parts still increases at a compounding rate. Now at the same time application of efficient costing methods and cost audit followed with own base of manufacturing  auto suppliers  like Balkrishna Industries, Bharat Forge Ltd, Cummins India Ltd, Sundaram fasteners Ltd stand to benefit in the event of rupee depreciation, due to their revenue and cost structure.

Chemicals & Chemical Products: This sector has been in overall deficit since FY07 consistently as India economy is still dependent largely on importing chemical goods in large quantities. The foreign currency outflows have grown at a CAGR of 20.8% since FY07. The deficit was INR55bn in FY13 and has grown at a CAGR of 32% since FY07. The top four most sensitive corporate in this sector include Astral Poly Technik Ltd., BASF India Ltd. Finolex Industries Ltd. and Gulf Oil Corporation Ltd. On the other hand companies which adopted costing methods judiciously and cost audit Atul Ltd, Gujarat Fluorochemicals Ltd, and Jai Corp Ltd because of their revenue and cost structure.

The import dependency nature of the Indian economy is reflected FC expense of its largest corporate. Further the ratio of FC expense as a proportion of overall expense is around twice the ratio of FC revenue to total revenue. Now obviously in these situations debt profile of the Indian economy is bound to increase. Digging further I have found the respective deficit industry specific wise and it clearly shows about the ignorance of COST AUDIT Report and its suggestion negligence.

Since 2007, the export of goods has contributed 69%-74% of the total FC inflow while the remaining portion was from non-good revenue in foreign currency. Well COST AUDIT Report negligence and adoption is equally divided within the Corporate India.   

Removal of the COSTING System from the above industries would create havoc trouble for the economy as they going to end up more with imports and hence Indian manufacturing would be slowly come to an end. As a journalist I would only say that it’s a process towards making India to be importing hub rather than maximizing it  export oriented country. Soon we might be living in India but using Chinese products as they would become more cheap due to efficient costing compared to Indian goods which will become expensive without adopting costing.

AFFECT OF REMOVAL OF COST AUDIT IN VARIOUS INDUSTRIES.

A special thanks to CMA Vijendra Sharma and CMA Amit Apte for their support and inputs on the same. Without their help I should have been able to write the same.

Till date we are asking for our rights but now the time has come to let the world know that what this profession of COST ACCOUNTING and COST AUDIT has been doing for the Indian economy. The time has come to raise the values and the benefits the COST AUDIT and COST ACCOUNTING profession provides to the Indian economy. The recent draft of the Cost Audit rules and regulations have abolished cost audit across all prime industries. I am going to explicitly cover the areas where cost audit have been abolished and its affect on the Indian economy in the coming days. There might be some business houses that might have supported abolishment but all these happened under the UPAII regime. This policy have been framed under the UPA-II regime and its clearly depicts that through this new COAST AUDIT Rules and Regulation Applicability would make Indian economy to collapse over the long term. The low cost tag line of Indian economy which is the key tool of competitiveness globally is going to be lost over the long term. It’s not about the 500000 students and 65000 members but it’s for the journey of the Indian economy from an underdeveloped to a Developed economy.

I have found that many people have said that Cost Audit practice is being done by only a small number of members but we forget that there are thousands employed as cost accountants in various industries and over the past 6 decades we have been catering to the growth path of the Indian economy.

I know that every one is busy with the Indian Budget which is going to held on 10 of July 2014 but what about the budget of 2015-16 and afterwards since after the abolishment of COST AUDIT there would be no way to measure the cost associated with any business. The adverse affect of the abolishment of COST AUDIT is going to be severe on the Indian economy in the coming days. This is act which was created deliberately by the UPAII to make the situation worse for the present government. With the new cost audit rules and regulation FDI investments would be declining and further government will be losing billions of money in the form of Indirect Taxes in the long term. When the Indian economy is planning for becoming one of the fastest economies of the world the recent abolishment of COST Audit across several industries would place significant slow down for the economy.

More RBI, World Bank, Asian Development Bank, would not be able to measure and ascertain the proper costing for all these industries and hence inflation and inflow of FDI capital would decline in the coming years. Moreover by making cost audit abolished fully or partially all these industries there are other ancillary industries linked with these who will be equally damaged in the long run. I am confident that all readers would be proud to be and become a Cost Accountant. We are building the nation over the last 5 decades.

The Industries where COST AUDIT has been abolished fully or partially are as follows:

1.        Energy subsidy & Gas Price pooling- We all know that Indian economy goes through tough phase regarding management of energy subsidies. The fiscal deficit of the Indian government is primarily due to high energy subsidy. On the other hand cost audit have been abolished for gas price pooling where currently the current population of India is reeling under high gas prices. Recently the gas a price have been hiked and if cost audit where cost analysis and cost management is being used is abolished then in the near future there will be no process of cost estimation and gas prices would only increase to abnormal levels. So Indian economy and its population will face higher gas prices and high levels of subsidy burdens which will bring down the growth prospects of the Indian economy. By abolishing cost audit every industry there will be no proper costing methods and every business from this industry would follow different methods of costing and pricing of their products.
2. .       Cement & Construction equipment- India needs $1 trillion of infrastructure investments. This investment is only going to come when the pricing and cost of construction is competitive enough. India's potential in infrastructure is huge. The country is expected to become the world's third largest construction market by 2025, adding 11.5 million homes a year to become a US$ 1 trillion a year market, according to a study by Global Construction Perspectives and Oxford Economics. Well for that we need cost audit and cost analysis to decide the competitiveness for bringing investments in this segment. Now after cost audit being abolished, every cement and Construction Company would follow different cost estimation and analysis techniques which will not be uniform. Price of the projects would increase and improper costing methods would lead to significant loss for the government revenue under PPP model and revenue of the Indian government through taxes would decline since everyone will hike their prices resulting less profit and less tax on these projects. Down the line these projects would become so expensive that FDI investments would decline and the quality of Infrastructure would be poor. The cement industry of India is the second largest producer in the world. The production of cement has increased at a compound annual growth rate (CAGR) of 9.7 per cent to reach 272 million tons (MT) during FY 06–13. . According to data released by the Department of Industrial Policy and Promotion (DIPP), cement and gypsum products attracted foreign direct investment (FDI) worth Rs 13,370.32 crore (US$ 2.24 billion) between April 2000 and February 2014. Now if cost audit and costing methods was not their then this industry should not have grown and should not have dreamt to grow like this. Moreover the government would find later on that imported cement is much cheaper as compared to the domestic prices and import would begin.
3. .       Electronic products- India is now the growing hub for electronic products. FDI companies have opened up their shops of manufacturing in India since the cost of production is attractive. Now with no COST Audit for this industry would lead to no uniform method of cost estimation and prices would increase. Increased prices would lead to increase of inflation and loss for the government revenue since every industry would inflate prices and government will not be able to access the correct prices.  FDI investments would decline once the prices increases and import of foreign products would turn out to be cheap. This will increase the Fiscal deficit of the Indian government in the coming days and our domestic manufactures would be unemployed down the line next 5 years.
4. .       Food Processing Industry - technology up gradation, modernization, establishment, Vegetables, Fruits and Nuts, Poultry and Related Products etc- Cost audit have been abolished for these industries and hence there will be no uniform costing methods for theses industries.  How RBI and the Ministry of Finance would find the prices pattern and cost pattern of these industries. More over with no cost audit being applicable for the Food Processing Industry there will be loss of government revenue since every company would discard at their own wish their plants and machineries and would establish modernization of their plans  to save taxes for several years since these cost are capitalized for several years. At the end Indian government would hardly get any revenue from these industries and even the prices of the food items etc would increase and inflation would be out of control. The food processing industry is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. The Indian food industry which presently stands at close to US$ 135 billion with a CAGR of 10 per cent is expected to touch US$ 200 billion by 2015. The food processing industry in India attracted foreign direct investments (FDI) worth US$ 5,793.95 million during the period April 2000–March 2014, according to data published by Department of Industrial Policy and Promotion (DIPP). After cost audit is being abolished how RBI will measure the real price hikes and its causes. Moreover imported plant and machinery would be used for technological up gradation which would increase the fiscal deficit of the Indian government. Moreover domestic plant and machinery manufactures would be closing down their business since no records of proper cost audit is being maintained.
5.     Drugs and Pharmaceuticals & Bio-technology industry- India currently is the growing hub for low cost drugs and low cost health facility. Every country across the globe is extensively jealous on this low cost healthcare and biotechnology expansions of India. With the abolishment of COST AUDIT and making it partially  for these industries there will no uniform costing methods and hence prices would escalate and Indian healthcare and biotechnology industry would not remain competitive and low cost for a very long period. According to data released by the Department of Industrial Policy and Promotion (DIPP), hospital and diagnostic centers attracted foreign direct investment (FDI) worth Rs 11,272.32 crore (US$ 1.87 billion) between April 2000 and February 2014. The allowance of foreign direct investment (FDI) in India’s Parma sector was well received by foreign investors. The cumulative drugs and pharmaceuticals sector attracted FDI worth US$ 11,588.42 million in the period April 2000–February 2014, according to data published by Department of Industrial Policy and Promotion (DIPP) India is the king of low cost generic drug segment but with the abolishment of cost audit India will not remain destination of low cost. For this long journey of the growth of this industry COST AUDIT was the prime factor which clearly depicted the true cost values which made this industry attractive for India and also for global investments. Indian biotechnology sector is divided into five major segments – pharmacy, services, agri, industrial, and informatics. The bio-pharmaceutical sector accounted for the largest share of the biotech industry, with a share of 64 per cent in total revenues in FY 13, followed by bio-services (18 per cent), bio-agri (14 per cent), bio-industrial (3 per cent) and bio-informatics (1 per cent).Revenue from bio-pharmacy exports contributes more than 64.5 per cent to total export revenues in the biotech industry; exports from this segment grew by 25 per cent to reach US$ 1.4 billion in FY 13.But now COST AUDIT being abolished this industry would become slowly unattractive. FDI investments would also decline since profitability is the key parameter for them to enter into any economy.  Just calculate about the loss the government would face once the cost audit is abolished or made partially in this segment.
6.        White good (domestic refrigerators, domestic dishwashing machines- Well prices of these products would increase and down the line with no proper cost audit and costing methods FDI investments in India would decline slowly. After abolishment of cost audit for this industry pricing of raw material and ancillary industries prices would also increase which would make price of the products expensive in term of domestic production. Then we would find later on that imports of these products are being made in India and domestic manufactures are unemployed.
7. .       Water supply and sanitation, Social welfare and nutrition, Urban Development, Family welfare- These are industries where government spends its tax payers money for the development of the society and also of the economy. This is another industry where India gets huge billions of money from WORLD BANK & Asian Development Bank. Now if their no cost audit and costing methods for this industries and segment will WORLD BANK and Asian Development Bank would provide funds. Moreover how government would measure the proper utilization of funds and results there to.   If cost audit is abolished then high level of inefficient resources and funds will be practiced and government would not be able to measure and detect the same.
8. .       Component parts and accessories of automobiles & - India is the growing hub of small car manufacturers. FDI investments have been ruling the Indian markets over the last decade. The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry during the period April 2000 to January 2014 was recorded at US$ 9,344 million, as per data published by Department of Industrial Policy and Promotion (DIPP), Government of India. The Indian auto component industry is estimated to have a US$ 66 billion turnover by 2015–16 and is expected to grow at a 14 per cent compound annual growth rate (CAGR) by 2013–2021, according to Automotive Component Manufacturers’ Association of India (ACMA) – the nodal agency for the Indian auto component industry. In addition, industry exports are estimated to reach US$ 12 billion by 2015–16. Now with abolishment of cost audit every company under this industry would adopt different methods of cost audit which would result to increase in prices and later on this industry would lose the competitiveness. FDI investments would start declining and over the next 5 years India would not be low cost Auto Component industry in India. Ancillary industries would also find an exit option from Indian market.
9. .       Textile machinery & cotton and woolen textiles - India is the one of the world's largest producers of textiles and garments. Abundant availability of raw materials such as cotton, wool, silk and jute as well as skilled workforce have made the country a sourcing hub. It is the world's second largest producer of textiles and garments. The Indian textiles industry accounts for about 24 per cent of the world’s spindle capacity and 8 per cent of global rotor capacity. The potential size of the Indian textiles and apparel industry is expected to reach US$ 223 billion by 2021, according to a report by Technopak Advisors.  The industry (including dyed and printed) attracted foreign direct investment (FDI) worth Rs 6,710.94crore (US$ 1.11 billion) during April 2000 to February 2014. Now with the abolishment of the cost audit for this industry domestic machineries would hardly find any space and most of the machineries would be imported and the cost of the same would be capitalized over long period of time and government tax revenues from this industry would decline. Without costing how the government would assess whether a specified company would require replacements of its machineries.
10. .   Tea, Coffee, Plantation Structural Infirmities, Plantations, Food Storage and Warehousing, Spices, Rubber-1.   Information and broadcasting- The Indian information and broadcasting industry over the last 14 years - The industry has evolved over the last decade against the backdrop of shifting consumer preferences toward niche content and digital delivery platforms, growing business models, hyper-competition with the entry of local and global players, and changing regulations. The adaptation of digital media from analog broadcasting has generated business avenues for OEMs and related hardware and software partners. The Indian broadcast and cable TV industry estimated at Rs. 38,500 crore in 2011-12 is projected to grow at a CAGR of 12 percent to reach Rs. 54,720 crore by 2014. Cost Audit has been abolished after this staggering growth the industry. I have nothing to repeat that in the long term this industry would lose its competiveness.
11. .   All PPP projects- The biggest blunder which has been done is that removing cost audit for all the PPP model projects. How these projects would be competitive would be the biggest point of discussion.  FDI investments would only come when the ROI and ROE is much higher compared to their won Country PPP model of business. Now for making this ROI and ROE higher proper and efficient cost management and cost audit is required. Hence in the long term these projects would become unviable once the prices and ROE and ROI declines.

Well this is my first part of the damages of the various industries and of the Indian economy in the long-term through abolishment of cost audit. I am yet to cover many other industries which I would cover in the 2^nd series. All I can find is that if COST AUDIT is abolished then Indian competitiveness in the Global Platform is being planned to bring down. Well be proud to be a cost accountants we are building the nation over the last 5 decades.