CII Annual Report 2013-14

Confederation of Indian IndustryThe Mantosh Sondhi Centre

23, Institutional Area, Lodi Road, New Delhi 110 003 (India)T: 91 11 45771000 / 24629994-7 F: 91 11 24626149

E: [email protected] W: www.cii.in

Reach us via our Membership Helpline: 00-91-11-435 46244 / 00-91-99104 46244CII Helpline Toll free No: 1800-103-1244

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The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the development of India, partnering industry, Government, and civil society, through advisory and consultative processes.CII is a non-government, not-for-profi t, industry-led and industry-managed organization, playing a proactive role in Indias development process. Founded in 1895, Indias premier business association has over 7400 members, from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 100,000 enterprises from around 250 national and regional sectoral industry bodies.

CII charts change by working closely with Government on policy issues, interfacing with thought leaders, and enhancing effi ciency, competitiveness and business opportunities for industry through a range of specialized services and strategic global linkages. It also provides a platform for consensus-building and networking on key issues.

Extending its agenda beyond business, CII assists industry to identify and execute corporate citizenship programmes. Partnerships with civil society organizations carry forward corporate initiatives for integrated and inclusive development across diverse domains including affi rmative action, healthcare, education, livelihood, diversity management, skill development, empowerment of women, and water, to name a few.

The CII theme of Accelerating Growth, Creating Employment for 2014-15 aims to strengthen a growth process that meets the aspirations of todays India. During the year, CII will specially focus on economic growth, education, skill development, manufacturing, investments, ease of doing business, export competitiveness, legal and regulatory architecture, labour law reforms and entrepreneurship as growth enablers.

With 64 offi ces, including 9 Centres of Excellence, in India, and 7 overseas offi ces in Australia, China, Egypt, France, Singapore, UK, and USA, as well as institutional partnerships with 300 counterpart organizations in 106 countries, CII serves as a reference point for Indian industry and the international business community.

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Published byConfederation of Indian Industry

The Mantosh Sondhi Centre23, Institutional Area, Lodi Road

New Delhi-110003, IndiaTel: +91-11-24629994-7

Fax: +91-11-24626149Email: [email protected]: www.cii.in

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ANNUAL REVIEW 2014-15

A c c e l e r a t i n g G r o w t hC r e a t i n g E m p l o y m e n t

2 | CII ANNUAL REVIEW 2014-15222 CII NN 4-15EW 2AL R

Indias GDP growth for 2014-15 is estimated at a robust 7.4 per cent, after two years of subdued pace. During this period, the interplay of global and local, macro and micro economic factors, political pulls and pressures, presented several challenges for the Indian economy. The General Elections of 2014 generated hope and optimism amongst industry and the Indian public, as a majority Government was elected for the fi rst time in three decades.

CII shares the current Governments vision of a developed India and our 2014-15 theme of Accelerating Growth, Creating Employment was in alignment with this. We laid special emphasis on 10 key enablers that we believe are critical to development - Education; Skill Development; Economic Growth; Manufacturing Sector Growth; Investments; Ease of Doing Business; Export Competitiveness; Legal and Regulatory Architecture; Labour Law Reforms and Entrepreneurship. We intensifi ed interaction with the new ministers on all these areas.

Recognizing that Indias demographic dividend could be leveraged with better education and skilling, CII pushed for better Teacher Enhancement Programmes and greater use of Technology for School Education. In Higher Education, CII focused on promoting industry-academia linkages. A special platform; the University-Industry Congress

Looking BackPresidents Review

CII ANNUAL REVIEW 2014-15 | 3

was created this year, and the fi rst Congress was held under the aegis of Knowledgexpo. This is an umbrella brand created by CII for all knowledge-related activities.

The establishment of a new Ministry of Skill Development and Entrepreneurship re-emphasizes the Governments focus on skilling India. CII has been actively working with the Ministry to create a conducive ecosystem for skill development through policy advocacy, research studies, PPP models and CIIs own on-ground training initiatives.

To boost economic growth and promote the Manufacturing sector, the Government launched the ambitious Make in India programme and CII contributed as a key partner through various initiatives. We prepared an Agenda on Manufacturing Reforms, published reports on Ease of Doing Business and offered several recommendations to State Governments. CII has suggested comprehensive reforms such as single window clearance systems, online submission of forms, revising the Land Acquisition and Rehabilitation Bill, as well as submitted several proposals for facilitating economic growth.

During the year CII intensifi ed its efforts to bring about policy reforms in Labour Laws and the Regulatory Architecture. This will help in creating a business friendly environment that would increase effi ciency, attract investment and generate jobs. In addition, CII undertook several initiatives in conjunction with the Governments other fl agship programmes such as Swachh Bharat, Digital India and Clean Energy.

It has been a very busy year for all of us, and accomplishing so much in so many areas would not have been possible without the sincere and dedicated efforts of each and every CII Member. I deeply appreciate the contribution of all the Council and Committee Chairpersons, and also our Regional Chairpersons. I would especially like to thank Sumit and Naushad for their leadership and contribution. I would like to sincerely thank Mr. Chandrajit Banerjee and his team, for the excellent work done during the year. I wish them well in their efforts of taking CII to greater heights, and continue contributing to nation building.

Ajay S ShriramPresident, CII


In many ways 2014 has been a turning point: the year saw a change in the political and socio-economic landscape of India and the way the world perceived India. While several of the challenges that the country faceddeclining investments, slow growth, lack of employment opportunities, policy-related issues and weak business sentimentremained, India showed promise and potential, and could well become a key player in the new economic order.

With the launch of the Make in India initiative, a range of steps have been taken to invite investments, facilitate the business climate, invite FDI, and boost innovation. CII complemented the Governments efforts through several initiatives, particularly on Ease of Doing Business. We also made recommendations for the two Budgets during the year with special emphasis on clarity, stability and predictability of taxation. Opening of FDI limits in defence manufacturing offers a chance for greater private sector participation in defence production, and CII welcomes the new policies in this regard. The Insurance Bill, aimed at raising the FDI limit in insurance, has been another signifi cant positive development.

A key CII campaign launched during the year was the ZED movement for promoting Zero Defect, Zero Effect, a call by Prime Minister Modi to industry to enhance competitiveness with zero negative effect on the environment. This is a comprehensive advisory, training and learning programme to be

Looking AheadPresident Designates Report


carried out by most of CII Centres of Excellence, and we are confi dent it would contribute meaningfully to the national manufacturing endeavour.

CII has always believed that active private sector participation in Agriculture could change the growth trajectory of this sector. During the year, we advocated the creation of investment opportunities for the private sector through a range of policy reforms in areas like agri marketing, food grain management, fertilizer subsidy etc.

Indias infrastructure has suffered due to delays in projects and hurdles in land acquisition, among others. CII took up urgent issues of infrastructure fi nancing, effi cient regulation, development of an institutional framework for Public-Private Partnership projects and a Dispute Resolution Mechanism that would help this sector play an enabling role in accelerating economic growth.

Energy security is critically important to attract investment and this also requires attention to mining and resource allocation. CII presented suggestions to the Ministry of Coal to ensure a level playing fi eld for the private sector and advocated reforms in mining laws. The Coal Mines Special Provisions Bill, passed recently by the Parliament, is indeed a welcome move.

India, as we know, is blessed with abundant mineral reserves. We are the worlds third largest exporter of iron ore, but even then, we have barely scratched the surface of our true potential. The Mines & Minerals Development and Regulation (MMDR) Bill a matter of sincere lobbying by CII over the yeas is a very promising development.

The salience of the MSME sectors has grown as it is recognized as a critical generator of employment as well as entrepreneurship. The CII MSME Council has been advocating for a change in the defi nition of the MSME framework, adequate access to fi nance and amendment to the MSME Development Act for revival and exit of fi rms. Other areas CII took up included public procurement from MSME and technology acquisition. We also released a report titled The New Wave Indian MSME: An Action Agenda for Growth which was well received.

This year too, these and other equally important issues will remain high on the CII agenda and I look forward to pursuing these in my new role and with my new team members as CII continues its efforts to create a vibrant India.

Sumit MazumderPresident Designate, CII

Sumit Mazumder


Reaching OutVice Presidents Comments

Over the decades CII has proactively worked to bring about positive changes in Indias socio-economic landscape as it works closely with its diverse stakeholders industry, Government and civil society.

Policy advocacy continues to be one of the most important pillars of CIIs work, and CII continually interacts with Industry through its various Councils and Committees to deliberate upon issues and evolve policy recommendations. In 2014-15 too, as the new Government took over in May 2014, CII presented Issues and Recommendations across sectors for the Governments consideration. We also stepped up partnership with State Governments on issues as diverse as land acquisition, Goods and Services Tax, Manufacturing Policy, and others.

CII continued to connect with its diverse stakeholders through its events which serve as excellent platforms for discussions that shape the business environment. The Knowledgexpo, IETF, and The Partnership Summit as well as other events draw Industrys best to interact with the Government and share concerns and issues with the aim of fi nding solutions. Our online business resource portal, www.mycii.in, serves as a valuable reservoir of information for industry and facilitates business and networking. I would urge Members to actively use this portal for your needs.


Our Centres of Excellence continue to lead industry by way of consultancy, advisory and training programmes, enabling them to meet the challenges posed by a rapidly globalizing economy. Our efforts to enhance competitiveness in areas such as manufacturing, sustainability, logistics, green business, and leadership are bringing world-class standards to industry to enable them to enhance their competitiveness with minimal negative impact on the environment. We are now working on devising standards for an Indian quality system.

On CSR, the CII Foundation continues to strengthen industrys engagement with the community through on-ground projects across the country. We pledged to work intensely on sanitation and cleanliness, particularly in schools, and launched Mission SoS Sanitation of Schools. On gender empowerment, CII has emerged as an industry leader and we remain active in facilitating security and safety for women. CII also continued to work on mainstreaming the specially-abled through a dedicated job portal and job fairs. I am especially happy that during the fl oods in Jammu & Kashmir, CII and the CII Foundation could quickly activate the Disaster Management programme to provide relief and follow this up with rehabilitation projects.

CII publications have, over the years, become a platform to connect and share views. Economy Matters offers deep insights and perspectives on the state of the Indian economy, while Policy Watch highlights issues and showcases CIIs policy advocacy to bring about policy changes. A plethora of reports and studies have been released through the year to disseminate information.

We strengthened our engagement with our Members through various platforms, offering them a range of services that would make their association with CII more valuable. Throughout the year, Membership Meets, Road Shows and direct contact meetings took place which helped us better understand the issues Members face.

CIIs sustained industry-specifi c efforts have helped Indian industry to stay competitive and I look forward to the coming year where we will continue our efforts to create an India that is economically and socially strong.

Dr. Naushad ForbesVice President, CII

8 | CII ANNUAL REVIEW 2014-15

PolicyAdvocacy

International andBusiness Development

Competitive Solutionsand NurturingCompetitiveness

Connectingwith Society

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CII in theRegions

MembershipServices

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Policy Advocacy ECONOMIC POLICY AND TAXATION EASE OF DOING BUSINESS CORPORATE GOVERNANCE AND REGULATORY AFFAIRS

FINANCIAL REPORTING AND NFCG ETHICS IN BUSINESS AND SOCIETY PUBLIC POLICY

12 | CII ANNUAL REVIEW 2014-1511 | C AN 014-15VIEWUAL

ECONOMIC POLICY AND TAXATION

From L to R: Rajiv Memani, Chairman, CII National Committee on Taxation and Chairman - India Region, Ernst & Young LLP; Chandrajit Banerjee, Director General, CII; Shaktikanta Das, Revenue Secretary, Ministry of Finance, Government of India; R Seshasayee, Past President, CII and Executive Vice Chairman, Hinduja Group and Kaushal Srivastava, Chairman CBEC, Ministry of Finance, Government of India releasing the publication on Enabling Make in India through effective tax reforms at the 2nd Global Tax Summit in New Delhi

Policy Advocacy In pursuance of its policy advocacy efforts, CII continuously engaged with the Government to articulate suggestions to boost demand and bring the economy back on the path of sustained growth. For addressing structural bottlenecks, CII brought out a nine point agenda titled Agenda for Economic Revival, containing a mix of administrative and policy recommendations.

Further, CII continuously interacted with policy makers, both at the Central and State Government levels, for addressing regulatory bottlenecks which would assist in reviving the investment climate and expediting implementation of stalled projects. In this context, CII organised a Round Table Meeting with the Finance and Economic Affairs Secretary, Government of India wherein discussions veered around the evolving investment climate, infrastructure fi nancing and the role played by fi nancial markets, among others.

Continuing its focus on reviving investments, which in turn would unleash the latent growth potential of the economy, CII worked extensively on estimating the investment requirements of the economy in the medium term. A detailed study titled Investment Requirements in India: 2014/15 to 2018/19 estimating the investment requirements of the economy for the next fi ve years, was also undertaken. According to the study for achieving an average annual growth of 7% over the next 5 years, an investment of Rs. 280 lakh crore (USD 4.7 trillion) will be needed, which is nearly double the value invested in the last 5 years. The study also charted out a roadmap for investment and identifi ed possible sources of funding so as to help in aligning our policies to meet the target in a time-bound manner.

Among the other policy advocacy measures, CII provided valuable inputs and reactions to the media on pertinent issues such as industrial growth, infl ation, monetary policies, Ease of Doing Business etc. Pre-Budget and Post-Budget Memorandum covering policy, direct and indirect

In 2014-15 CII focused on Economic Revival and made a fervent pitch for initiating structural reforms which would turn the early stirrings of economic revival, currently underway, into a fi rm recovery story.


From L to R: Sudhir Kapadia, Partner & National Tax Leader, Ernst & Young, India; Archie Parnell, Vice Chairman, BIAC Tax Committee & Managing Director, Goldman Sachs; Akhilesh Ranjan, Joint Secretary, Ministry of Finance; Neeru Ahuja, Chairperson, CII Sub Group on BEPS & Partner, Deloitte Haskins & Sells; Vikkas Mohan, Senior Director, CII; John Staples, Senior Policy Adviser, Corporate Tax Strategy, HM Treasury, UK at the Conference on Base Erosion and Profi t Shifting (BEPS)- Impact on Indian Tax Landscape in New Delhi

taxation and tax administration issues based on Members suggestions were also submitted. Many of CIIs recommendations have found a place in Government policies.

PublicationsThe Economy Matters, CII's fl agship publication, besides tracking economic developments on domestic and global fronts, also provides detailed analysis on important policy issues. A number of new topics, for example, analysis of investment trends, viewpoints of sectoral experts etc., were added during the year.

CII's Business Outlook Survey is a widely read and quoted survey pertaining to current and future economic conditions prevailing in the country. Owing to a sizeable membership base a large number of responses are gathered, which in turn help in obtaining near accurate survey results.

TaxationDuring the year, the CII Taxation framework focused on facilitating the creation of a conducive tax environment for the industry by making suggestions to the Government on bringing in a fair, transparent and business friendly tax regime. MNEs use a wide range of cross border tax planning techniques that result in little or no tax liability such results are referred to as Base Erosion and Profi t Shifting (BEPS), which is in the offi ng and the Rules are just months away. Amongst the various BEPS related initiatives of

CII was a Conference on Base Erosion and Profi t Shifting Impact on Indian Tax Landscape, to familiarise industry with the changes in the tax legislation. Offi cials from OECD and British High Commission interacted with over 200 delegates who attended the conference. A thought leadership publication was unveiled at the event. The conference echoed the growing voices of MNCs and Indian corporates alike for a stable, certain and less litigious tax environment to ensure that investors in the Indian economy are well positioned to plan their investments and estimate tax outcomes in a reasonable and consistent manner, which would facilitate understanding the evolving tax landscape around the world and in India.

Continuing its efforts to help industry voice its concerns to the Government, CII organised the Global Tax Summit in New Delhi. It provided a forum for policy makers from the Government and industry as well as tax experts to deliberate on issues of importance in taxation. A thought leadership publication was also released at the event.

With a view to represent the industrys views on important aspects of GST, CII has constituted a Core Group on GST, with a focus on issues of immediate relevance as well as those pertaining to the Constitutional amendment. The Core Group deliberated on possible solutions to fundamental design issues. CII had regular interactions with offi cials dealing with GST related issues.


EASE OF DOING BUSINESS CII is currently working towards making India a preferred investment destination by emphasizing reforms to ease the policy landscape for doing business in India both from the domestic as well as the foreign perspective. Concerned with Indias unenviable rankings

in World Banks Ease of Doing Business, CII surveyed the prevailing business regulatory environment, focusing on few key parameters of Doing Business such as starting a business, land acquisition etc. The objective was to underscore the areas that need attention; highlight effective and effi cient processes prevalent in some states that could be emulated by others; and advocate for adoption of more effi cient and effective practices. The report throws light on areas of business regulation where some states have converged towards effi cient systems and those where progress remains to be made.

CII also embarked on an in-depth study to develop a limited number of key, high-impact recommendations that infl uence the life-cycle of a business such as technology enablement across the Government, facilitating land acquisition process, streamlining investment approvals etc. with the objective of re-asserting Indias position as an attractive investment destination.

The suggested Action Plan included steps required to be taken, drivers and timelines. The proposed action plan has been segregated as Immediate (90 - 180 days), Short Term (6-12 months) and Mid-Long Term (12-18 months).

To make signifi cant progress in improving ease of doing business in India, CII also worked closely with the Government and regulatory authorities for enhancing Indias investment attractiveness through simplifi cation of procedures. CII prepared a detailed report

on Improving Investment Attractiveness: Simplifying Procedures which analyses various parameters of World Banks Doing Business report and accordingly makes suggestions to ramp up Indias ranking to 50th position over the next 2-3 years.

MoU with National University of Singapore (NUS) for Masterplan on Ease of Doing Business in India: Vision 2020 CII signed an MoU with the National

University of Singapore (NUS) to cooperate in preparing a Masterplan on Ease of Doing Business in India: Vision 2020, with the objective to collaborate in conducting joint research and capacity building on issues related to Ease of Doing Business in India and across States.

For achieving the objective, both NUS and CII will conduct state level research across the parameters determining the Ease of Doing Business including (i) Starting a Business (ii) Dealing with Construction Permits (iii) Getting Electricity (iv) Land Acquisition and Registration of Property (v) Getting Credit (vi) Protecting Minority Investors (vii) Paying Taxes (viii) Trading Across Borders (ix) Enforcing Contracts

(x) Resolving Insolvency (xi) Labour Market Regulations with particular emphasis on attractiveness to investors and business friendliness.

Chandrajit Banerjee, Director General, CII and Dr Tan Khee Giap, Co-Director, Asia Competitiveness Institute, Lee Kuan Yew School of Public Policy, National University of Singapore after signing the MoU


CORPORATE GOVERNANCE AND REGULATORY AFFAIRS

ADVOCACYThe Companies Act, 2013Aiming at easing implementation of the Companies Act, 2013 CII continued sustained advocacy efforts to ensure that the new regulatory framework is pro-industry. Detailed inputs on the Act and Rules were submitted covering unresolved issues, supplementary issues being faced, and provisions that needed to be settled by way of Amendments to the Act.

ACTIONWith a view to provide a consolidated platform for Regulator-Industry interaction on the issues, CII organised a closed-door Round Table on The Companies Act, 2013 on 31 October 2014 at Mumbai. With senior CII leadership in participation, Minister Smt. Nirmala Sitharaman [then also holding charge as Minister of State for Finance and Corporate Affairs] presided over the Round Table. Deliberations at the Round Table were extremely useful giving industry an insight into how the Government plans to take forward the implementation of the Act while keeping compliance lucidity in mind.

Various CII delegations interacted with Shri Arun Jaitley, Union Minister for Finance, Corporate

CII continued with policy advocacy on corporate laws during 2014-15 with the agenda replete with backing industry views on the Companies Act, 2013 and Rules framed thereunder; SEBI Regulations and the Competition Law among others.

From L to R: Adi Godrej, Past President, CII and Chairman, Godrej Group; Nirmala Sitharaman, Minister of State (Independent Charge) for Commerce and Industry and the then Minister of State for Finance and Corporate Affairs; Chandrajit Banerjee, Director General, CII at the CII Closed-door Round Table on The Companies Act, 2013 in Mumbai

Public Sector EnterprisesOver the year, the CII Council on Public Sector Enterprises worked closely with key stakeholders in the public sector space to successfully infl uence policy direction in key areas. The Council organised a workshop with the Department of Public Enterprises (DPE) which led to the creation of a forum of Company Secretaries to deliberate on the Companies Act, 2013. The recommendations of this forum were submitted to the Government.

The Council engaged with the Department of Public Enterprises on the Guidelines on CSR and for modifi cation or deletion of circulars that are obsolete. A number of Maharatna, Navaratna and Miniratna PSEs interacted with SMEs during the Vendor Development programme for CPSEs.

A Workshop on the Companies Act, 2013 was held with DPE and all Company Secretaries of CPSEs on 29th April 2014.


Affairs, Information and Broadcasting and other senior offi cials of the Ministry of Corporate Affairs. The CII National Committee on Regulatory Affairs also deliberated on these issues.

Some of the concerns addressed in response to CII advocacy during the year include clarifi cation on status of private company being subsidiary of foreign company; clarity on related party vis--vis directors of public companies; pecuniary transactions or relationships for determining the status of a director with reference to his independence; payment of remuneration to an independent director of the holding company by a subsidiary; saving provisions in respect of the existing equity shares with differential rights; exemption to NBFCs from creating Debenture Redemption Reserve in case of privately placed debentures; transition period for undertaking deposit insurance etc.

Acceding to industry submissions, some of the issues with respect to related party transactions; confi dentiality in business, loans, fraud etc are slated to be settled with notifi cation of the Companies (Amendment) Bill, 2014. While the Bill has been passed in Lok Sabha, it awaits passage in the Upper House of Parliament. Draft notifi cations have also been initiated by MCA for exempting private companies from some of the more stringent requirements under the Act.

Some of the issues currently being taken up by CII with MCA include onerous requirements for private companies and closely-held unlisted public companies; related party transactions; CSR; amounts treated as deposits; loans to employees; criminalisation of offences; certifi cation of internal fi nancial controls instead of internal control over fi nancial reporting; consolidation of accounts; cost accounting and audit and alignment with SEBI regulations, etc amongst others. These provisions, CII has asserted, require reconsideration either due to their extended reach or complexity in drafting the regulation or practical diffi cultly in compliance.

Investors perspective on Corporate Governance - Implications from the Companies Act, 2013 and Clause 49

CII organised a seminar titled Investors perspective on Corporate Governance - Implications from the Companies Act, 2013 and Clause 49 in association with International Finance Corporation (IFC) and Indian Institute of Corporate Affairs (IICA). Deloitte Touche Tohmatsu India Private Limited were Knowledge Partners to the seminar. With the Indian corporate governance framework undergoing a sea-change with the notifi cation of the new Companies Act, 2013 and revised Clause 49 of the Listing Agreement, the one day seminar focused on:

From L to R: Dr Bhaskar Chatterjee, Director General & CEO of Indian Institute of Corporate Affairs and Dr Naushad Forbes, Vice President, CII and Director, Forbes Marshall Private Limited while signing the MoU for improving awareness and providing a platform to educate India Inc on the Competition Compliance issues at the Conference on Boosting Competition Compliance Tackling Challenges in Mumbai. Ashok Chawla, Chairperson, Competition Commission of India; Zia Mody, Managing Partner of AZB & Partners and Vikkas Mohan, Senior Director, CII look on


FINANCIAL REPORTING AND NFCG

CFO ForumCII CFO Forum (Forum), a high-level discussion group of the Chief Financial Offi cers of prominent Indian and MNC companies, focused on the recent developments in the regulatory environment and sharing of experiences by CFOs.

With this focus, CII organised a closed door CFO Interactive Session with Mr. Colm OHiggins, Group Chief Financial offi cer of SITA in Mumbai where challenges of managing a worldwide operation were discussed. The interaction on IFRS

From L to R: Sai Venkateshwaran, Member, CII National Committee on Financial Reporting and Partner & Head, Accounting Advisory Services, KPMG; Ian Mackintosh, Vice Chairman, International Accounting Standards Board (IASB); Ajai Das Mehrotra, the then Joint Secretary, Ministry of Corporate Affairs, GoI at an interaction on IFRS in New Delhi

Rostow Ravanan, ED & Chief Financial Offi cer, MindTree Ltd; Colm OHiggins, Group CFO, SITA at an interactive session in Mumbai

From L to R: Kiran Karnik, Chairman, CII National Committee on Telecom & Broadband and Director, Central Board, Reserve Bank of India; Sutanu Sinha, Chief Executive, The Institute of Company Secretaries of India; P R Ramesh, Chairman, Deloitte India; Dipankar Chatterji, Chairman, CII National Committee on Financial Reporting at a conference in New Delhi

Corporate Governance Investor Expectations Related Party Transactions Expert Take Measuring Board Effi ciency Advanced Internal Financial Controls Risk Management - Striking a

Delicate Balance

Engagement with SEBIDuring the year, CII engaged with SEBI and submitted vital inputs on the subjects of corporate governance; ESOP and insider trading.

Competition Law On Competition Law, CII organised a conference titled Boosting Competition Compliance Tackling Challenges in Mumbai.

Mr Ashok Chawla, Chairperson of Competition Commission of India appreciated CIIs efforts towards creating awareness on Competition Compliance. CII signed a MoU with IICA to provide guidance and broad framework of Competition Compliance to the corporates in India.

During the year, CII stressed the need for providing incentives to companies for instituting competition compliance programmes within the Indian competition law framework. Issues related to merger regulations; unjustifi ed quantum of penalties imposed; dawn raids; pending cases before CCI were also discussed by the CII National Committee on Regulatory Affairs.


Naved Masood, the then Secretary, Ministry of Corporate Affairs, Government of India; Chandrajit Banerjee, Director General, CII and Managing Trustee, NFCG; M J Joseph, the then Additional Secretary, Ministry of Corporate Affairs, GoI at an interactive session in New Delhi

converged with IFRS and its implementing challenges.

The Conference on Corporate Disclosures - Financial Reporting and Auditing Reforms, held in New Delhi deliberated upon accounting and auditing aspects of the new Companies Act and converged IFRS and how to make compliance easier.

CII made various representations and organised meetings with the Ministry of Corporate Affairs on Accounting issues in Companies Act 2013 & IndAS.

in New Delhi, addressed by Mr Ian Mackintosh, Vice Chairman, IASB and Mr. Ajai Das Mehrotra, the then Joint Secretary, Ministry of Corporate Affairs, Government of India, provided a unique opportunity to interact with IASB & MCA offi cials on IFRS and its implementation issues. In addition the Forum has provided necessary inputs on Companies Act 2013 & Rules, which formed part of CII representation on the Act.

Financial ReportingConsidering the sea-changes in Indias Financial Reporting regime the Committee is focused on Indian Accounting Standards (IndAS) being

NFCG was set up in Oct 2003 by the Ministry of Corporate Affairs (MCA), in partnership with CII, the Institute of Company Secretaries of India (ICSI) and the Institute of Chartered Accountants of India (ICAI) to foster a culture of good Corporate Governance both at the individual corporations level and for the economy as a whole. In 2010, the Institute of Cost Accountants of India and National Stock Exchange (NSE), and in 2013, Indian Institute of Corporate Affairs (IICA) were included as NFCG Trustees.

NFCG works closely with Partner Institutions and Accredited Institutions in providing a platform for quality discussions and debates amongst academicians, policy makers, professionals and corporate leaders through research, conferences, orientation programmes, meetings and seminars in Corporate Governance.

In 2014, NFCG supported 8 events organised by CII in the areas of Corporate Governance, CSR and Sustainability. In addition, NFCG also

supported over 18 international/national level seminars/conferences, orientation programmes organised by Accredited Institutions and other Partner Institutions.

Further, to strengthen the research forte of NFCG, this year, seven research studies instituted under the aegis of NFCG, were completed by the Accredited Institutions and Partner Institutions.

National Foundation for Corporate Governance


ETHICS IN BUSINESS AND SOCIETY

ACTIONGood Governance requires equal effort of all stakeholders - Government needs to develop transparent policies and simple procedures. Industry is required to do business ethically and the common man needs to support both by becoming a responsible citizen.

CII is playing its part to minimize corruption by enabling the membership to build a culture of integrity. During the year, CII prepared recommendations on how to curb corruption which will be shared with members.

CII gave inputs on various proposed legislations on anti corruption as also on policies. CII has also undertaken following activities in this area: A Seminar on Fighting Bribery in Business

Transactions in New Delhi jointly with OECD and World Economic Forum

Alongwith Alliance for Integrity, organised a programme on The Business Case to Counter Corruption in India and also carried out a survey to get members feedback on corruption and steps to minimize it

World Economic Forum and CII organised brainstorming sessions on advancing the

transparency and anti-corruption agenda in New Delhi

A note on simplifi cation of forms (in Export/Import and Customs) was prepared and sent to the concerned Committee for further action

Working with US and Indian Educational Institutes to develop a Curriculum on Business Ethics

With the development of curriculum on ethics and values for school children, a beginning has been made. This will be strengthened next year

The Committee interacted with various Government Ministries/Agencies dealing with anti - corruption and International Agencies and also represented Indian industry at various International Anti Corruption Forums.

With a new Government taking offi ce, CII reaffi rmed and strengthened its footprint in its work in the area of governance and business ethics.

From L to R: Dr. Jitendra Singh, MoS Personnel, Public Grievances and Pensions; Patrick Moulette, Head Anti Corruption Division, OECD; Sanjay Kothari, Secretary to Government of India, Ministry of Personnel, Public Grievances and Pensions; Deep Kapuria, Chairman, CII Northern Region Committee on Governance and Chairman, Hi-Tech Gears Ltd; Sushanta Sen, Principal Adviser, CII at a Seminar on Fighting Bribery in Business Transactions in New Delhi

Sumit Mazumder, President Designate, CII, and Chairman, CII Committee on Integrity & Transparency in Governance addressing a seminar in New Delhi


Public Policy work of CII acts as an interface to facilitate interaction of its Members with policy makers in the Government and Ministries at the international, national, state and regional level. Its initiatives are aimed at creating opportunities for Members of Parliament, legislators in the States and other political leaders across all political parties to understand the economy and industry better through direct interactions, whilst building broad consensus on social, national and international issues.

ADVOCACYTo present the industry perspective on important issues, CII was invited to depose to various Parliamentary Standing Committees on key Bills such as Mines & Labour Safety Act Forward Contracts (Regulation) Amendment

Bill 2010 National Identifi cation Authority of India Bill

2011 Lok Pal Bill 2011

Land Acquisition Bill 2010 Companies Act Amendment Bill 2011 Mines and Minerals Development and

Regulation (MMDR) Bill 2011 Indecent Representation of Women

(Prohibition) Amendment Bill, 2012 The Competition (Amendment) Bill, 2012 Securities Laws (Amendment) Bill, 2013 Parliamentary Standing Committee on

Payment Settlement Bill (Finance Committee), 2015

Parliamentary Standing Committee on Industry, 2015

ActivitiesIn the run up to the 2014 general elections, CII held interactions with various political parties to present suggested Election Manifestoes, with a focus on education, employment, entrepreneurship, governance, and economic strategies aimed at building an inclusively developed nation.

PUBLIC POLICY

Interactions held in 2014-15


With the formation of new government, CII held one to one meeting with MPs of various political parties to address political and industry issues.

CII Public Policy Council coordinated the State MPs meeting in New Delhi wherein presentations were made to highlight issues of various states to the parliamentarians. During the year, interactions with MPs from Tamil Nadu, Karnataka, Kerala, Haryana, Telangana, Bihar, Andhra Pradesh and Maharashtra were organised.

Several quantitative studies conducted on Member of Parliament Local Area Development Scheme (MPLADS) have focused on issues such as percentage utilization of the fund etc. The CII Public Policy Council and CII Foundation commissioned a fi rst of its kind qualitative study focusing on successful models implemented under MPLADS to capture the best practices for emulation by the political leadership in their respective areas.

The joint visit of CII Sasakawa Peace Foundation (SPF) mission of Parliamentarians to Japan in October 2014 focused on the theme Energy.

Led by Mr. Tarun Vijay, senior BJP Member of Rajya Sabha, the delegation included leaders of the Congress party, Trinamool Congress, JDU and Apna Dal. Newer fi elds of cooperation such as technology transfer, particularly in energy, learnings from Japans wide experiences etc are expected to emerge in the future. Over the past 8 years, 47 MPs have visited Japan under the CII-SPF mission.

CII in association with Young Indians (Yi) and Konrad Adenauer Stiftung (KAF) organised various Indo- German Interactive Sessions on Policy and Business in New Delhi. The participation from Indian and German Parliamentarians strengthened cooperation, shared democratic values and paved the way for Foreign Direct Investment (FDI) in Defense and Aviation sectors as potential areas of cooperation between India and Germany. The interactions included the CII Conference with members from the German Bundestag, Interaction with German Parliamentarians on 28th October 2014, Indo-German Interactive Session on Policy and Business, Meeting with German and Indian Parliamentarians, among others.

Interactions held in 2014-15


COMPETITIVE SOLUTIONS AND NURTURING COMPETITIVENESS

CII CENTRES OF EXCELLENCE

CII Institute of Logistics CII Institute of Quality CII-ITC Centre of Excellence for Sustainable Development

CII-AVANTHA Centre for Competitiveness for SMEs

CII Naoroji Godrej Centre of Excellence CII Sohrabji Godrej Green Business Centre

CII-Suresh Neotia Centre of Excellence for Leadership

CIITriveni Water Institute CII Jubilant Bhartia Food and Agriculture Centre of Excellence

BUILDING COMPETITIVENESS

Competitiveness Development Services Design Innovation and Entrepreneurship Intellectual Property Rights Technology Public Private Partnership Technology Centres

Skill Development Knowledge Management and Business Transformation

Human Resource Development Industrial Relations

Competitive Solutions andNurturing Competitiveness


CII Institute of Logistics

CII CENTRES OF EXCELLENCE

ADVOCACY Enhance functional skill through training and

development Conduct educational programmes in areas

such as logistics and supply chain Create a professional competency assessment

framework (SCM PRO & SCM EXE) Focus on Warehouse Operational Excellence

Assessment and Certifi cation (WAREX) Provide advisory services by selective

involvement and consultation Undertake Total Cost Management (TCM)

initiatives for manufacturing and services

ACTION Training Over 1500 professionals were trained through

open training programmes and in-house company programmes

200 Supply Chain practitioners were certifi ed in SCM PRO/SCM EXE competency assessment

The CII Institute of Logistics aims to become an international Centre of Excellence in Logistics and Supply Chain Management (SCM) and enable Indian industry to become a global benchmark for best practices in Logistics and SCM.

From L to R: Chandrashekhar Pitre, Senior Director, DHL; Anshuman Singh, Member - CII Institute of Logistics Advisory Council and MD & CEO, Future Supply Chain Solutions Ltd; Yuichi Oi, Head, Toyota Tsusho Corporation; Sathish Agnihotri, Cabinet Secretary, GoI; R Dinesh, Chairman, CII Institute of Logistics Advisory Council and JMD, TVS & Sons; Jaideep Ghosh, Partner & National Head, KPMG; Juzar Mustan, Member - CII Institute of Logistics Advisory Council and Country Manager, Toll Group India; K V Mahidhar, Head, CII Institute of Logistics at the Logistics Summit 2014 in Chennai

More than 300 executives were trained in the Total Cost Management Tool

Education More than 500 participants enrolled in the

Logistics and SCM education programmes Revised and upgraded training material for

Logistics and SCM courses was released College students benefi tted from the

preparatory short term certifi cate programmes in Logistics and SCM

MoUs were signed with Gitam University, AMET University, Sambhram Academy of Management Studies, West Ford School of Management and Avalon Business School for offering courses and certifi cation

WAREX and Improvement Projects14 organisations benefi tted from the Warehouse Excellence Certifi cation Model and improvement studies in Logistics and SCM.

TCM Maturity Model and Improvement ProjectsOver 20 organisations participated in the TCM maturity model and improvement studies programme.

Supply Chain and Logistics Excellence Awards (SCALE Awards)SCALE Awards were given for outstanding achievement and are aimed at encouraging industry to move towards becoming a global benchmark for best practices in logistics and SCM. The fi rst edition of SCALE Awards received an encouraging response from the industry.


CII Institute of QualityThe CII Institute of Quality is a community of experts and a leading authority on quality. It aspires to provide role model products and services for the betterment of organisations and society.

Business Excellence

ADVOCACY Transform high maturity organisations into

World Class organisations Create sustainable capability

ACTIONCII works in partnership with EFQM to administer the CII-EXIM Bank Award for Business Excellence in India. Godrej Locking Solutions and Systems Division became the 9th winner of the prestigious Business Excellence Award 2014. National Stock Exchange of India and Bosch Diesel Systems Business, Jaipur were Prize winners in the Large Organisation Prize Category. Thirteen other organisations were conferred Commendation Certifi cates for Strong Commitment to Excel and 16 were conferred Commendation Certifi cates for Signifi cant Achievement. Over the last 20 years, more than 500 companies have received Business Excellence Recognitions and over 500

assessors were trained. The 13th CII-IQ Anniversary Day together with National Business Excellence Conclave 2014 addressed Inclusive Performance Excellence with workshops on Innovation and Knowledge Management.

Total Productive Maintenance

ADVOCACY Consulting, training and assessments to

promote TPM practices Awareness through seminars, workshops,

trainings, conferences and competitions

ACTIONThe JIPM-TPM 2014 Award was conferred on 28 Indian companies, of which 23 were supported by the TPM Club. In total 186 Indian companies have received a total of 266 Awards, with some of them challenging higher level Awards. This Vertical has worked with numerous Indian and international companies over the last 10 years including those

Kalraj Mishra, Union Minister for Micro, Small and Medium Enterprises, GoI unfurling the ZED Pledge at the 22nd CII National Quality Summit in New Delhi. From L to R: L Krishnan, Convenor, Lean & Six Sigma, CII Institute of Quality and Managing Director, TaeguTec India Private Limited; T.C.A. Ranganathan, Former CMD, Export-Import Bank of India; Adil Zainulbhai, Chairman, Quality Council of India; N Kumar, Chairman, CII Institute of Quality & Past President, CII and Vice Chairman, The Sanmar Group; R Mukundan, Co-Chairman, CII Institute of Quality and Managing Director, Tata Chemicals Ltd and Greeta Varughese, Executive Director & Head - CII Institute of Quality


in South Africa, Oman, Bahrain, Egypt amongst others. 161 Kaizens were presented in the two Kaizen Conferences & Competitions of which 20 were declared winners. The 14th TPM National Conference had the theme TPM as a profi table philosophy at all times. Ten companies competed for the Kaizen Championship Trophy. The fi rst National Conclave on Operational Excellence, where the CII-Frost & Sullivan Whitepaper on Operational Excellence for Business Growth and Enhancing Stakeholder Value was released, received over 115 participants from across India.

QMS & Laboratory Management

ADVOCACY Building capacity in industry and strong

interface with Ministries and national bodies Sensitising stakeholders to best practices Infl uencing policy on standardisation,

conformity assessment and technical regulations

ACTIONCIIs National Zero Effect, Zero Defect (ZED) Campaign, in partnership with Quality Council of India (QCI), was launched by Shri Kalraj Mishra, Union Minister for MSMEs during the 22nd National Quality Summit. The ZED Campaign is expected to usher in the 2nd Quality Revolution in India and position India as the Worlds Manufacturing Hub. CII, through its Centres of Excellence will provide focused leadership, right competencies and adequate resources for ZED. Other initiatives include an online Certifi cation Course in Quality Assurance and Management, the 3rd National Laboratory Conclave jointly conducted by NABL and CII and counseling support to Bangladesh Standards and Testing Institution (Government of Bangladesh organisation) for a product certifi cation programme on securing accreditation to ISO 17065:2012. A workshop on Building and Construction Standards in cooperation with ANSI and BIS was organised and inputs for enabling MSMEs to meet competitive challenges were shared during the MSME Summit. A seminar on

Chemical Safety, Standards and Regulations was jointly organised with Sustainability Support Services SSS (Europe) AB, Sweden.

Education Excellence

ADVOCACY National awareness in education excellence;

convergence of assessments, accreditation and institutional effectiveness

Training, consultancy, seminars, workshops and conferences

ACTIONThe Education Excellence team worked with over 2500 institutions training over 10,000 teachers in India and overseas. The Teacher Engagement Network- Online Teacher Network (TEN) continued to empower teachers to coach K-12 students.

INCITE was launched to provide In-Service Certifi cation in Teaching Excellence for practicing teachers.

The National Summit on Quality in Education, inaugurated by Prof. M.V. Rajeev Gowda, Member, Rajya Sabha, The Regional Summit on Quality in Education, and the CII School Excellence Conclave lent a fresh perspective to teachers empowerment.

Lean and Six Sigma

ADVOCACY Awareness and Training in Lean and Six

Sigma methodologies

ACTIONThe 8th CII National Conference and Competition on Six Sigma and the 8th Regional level Six Sigma competition were held during the year. CII-IIM, Indore introduced a Certifi cation Programme for Lean Six Sigma Facilitators which was organised to build capacity amongst members. A Quality Improvement programme at RINL, Vizag was also organised.


CII-ITC Centre of Excellence for Sustainable DevelopmentThe CII-ITC Centre of Excellence for Sustainable Development aims to be a global leader in thought and action to drive transformation towards sustainable development. It provides innovative ideas and solutions to enable business and its stakeholders in sustainable value creation.

ADVOCACYEnvironment & Forests Clearances: To facilitate streamlining of administrative processes for environment and forests clearances, the CII-ITC Centre of Excellence for Sustainable Development (CESD) prepared a compendium of procedural issues and solutions in consultation with the CII National Committee on Environment. Based on this submission, The Ministry of Environment, Forests and Climate Change removed procedural bottlenecks, providing a clear policy direction for Ease of Doing Business in India.

High Level Committee (HLC) on review of Environment Regulations: CESD, along with members of the CII National Committee on Environment interacted with the HLC chaired by

Mr TSR Subramanian, Former Cabinet Secretary, on procedural issues faced by the industry and to provide workable suggestions to streamline the administrative processes.

Business and Biodiversity: On invitation by the Ministry of Environment, Forests & Climate Change (MoEFCC), CESD launched the India Business and Biodiversity Initiative (IBBI) with the support of German Development Cooperation through Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH in May 2014. The IBBI serves as a national platform for dialogue, sharing and learning, ultimately leading to mainstreaming sustainable management of biological diversity into businesses. A delegation of IBBI members attended the 12th Meeting of the

From L to R: Edgar Endrukaitis, Director Biodiversity Programme, GIZ India; Ravi Singh, CEO and Secretary General, WWF; R Mukundan, Chairman, IBBI, and MD, Tata Chemicals; Nik Senapati, MD, Rio Tinto India; Santosh Shidhaye, Senior VP Corporate Sustainability Cell, IL&FS, at the launch of India Business and Biodiversity Initiative (IBBI) in New Delhi


Conference of the Parties (COP) to the CBD in Republic of Korea.

Sustainable Plus: A CESD innovation, the Sustainable Plus Label provides a brand identity tool for companies to communicate that they are sustainable, responsible and well-governed. Companies such as ITC, Tata Chemicals, Tata

From L to R: Andrew Steer, President & CEO, World Resources Institute; Y C Deveshwar, Past President, CII & Chairman, Advisory Council, CII-ITC Centre of Excellence for Sustainable Development and Chairman, ITC Limited; Prakash Javadekar, Minister of State (Independent Charge)Environment, Forest and Climate Change, GoI and Chandrajit Banerjee, Director General, CII at the 9th Sustainable & Inclusive Solutions Summit in New Delhi

Prakash Javadekar; Meenakshi Lekhi, Member of Parliament, Lok Sabha; Y C Deveshwar and Chandrajit Banerjee at the CII-ITC Sustainability Awards in New Delhi

Power, Mahindra and Mahindra, Siemens, Maruti Suzuki and Wipro have adopted the label.

Integrated Reporting: CESD introduced integrated reporting to India by setting up a business network called Lab India. The Lab aims to build capacities of Indian companies on integrated reporting and to represent their concerns to the International Integrated Reporting Council (IIRC).

ACTIONKnowledgeCESDs fl agship event 9th Sustainable & Inclusive Solutions Summit held in New Delhi brought together the best minds and stimulated new ways of thinking to achieve sustainable and inclusive solutions.

Publications Business and Biodiversity in India: 20 Illustrations featuring initiatives of 20 companies across diverse sectors in biodiversity management within their operations and through their CSR activities was released.

Capacity BuildingCESD undertakes capacity building through a range of training and counselling services. In 2014, CESD reached out to 2000 participants through over 75 programmes, conducted both in India and abroad, on topics such as value innovation, CSR rules and impact measurement, sustainability reporting, cluster platform for transformative solutions, among others.

Recognition The CII-ITC Sustainability Awards recognize and reward outstanding contributions to Sustainable Development by corporates in the country. The 9th CII-ITC Sustainable Awards ceremony was held in December 2014. Shri Prakash Javadekar, Minister of State for Environment, Forests and Climate Change and Ms. Meenakshi Lekhi, Member of Parliament, Lok Sabha handed over the prestigious awards to 27 winning companies as Indias Most Sustainable.


CII-AVANTHA Centre forCompetitiveness for SMEsThe CII-Avantha Centre for Competitiveness for SMEs focuses on accelerating the competence of SMEs through its services in Manufacturing Excellence, HR, Energy, Corrosion and Cost Management. SMEs are assisted in improving business performance and enhancing productivity, innovativeness, global footprint and overall competitiveness.

ADVOCACY Enhancing competitiveness Facilitating bilateral, social and economic

relations Enhancing reach and networking Promoting balanced and sustainable growth Corrosion management

ACTIONEnhancing CompetitivenessOver the year, the Centre worked with SMEs to help them improve their business indicators and enhance productivity, innovativeness and competitiveness.

Cluster Approach Catalyst for Growth and TransformationClusters are important drivers of competitiveness and innovation. During 2014, approximately 125 enterprises benefi tted from the Cluster programme, taking the cumulative fi gure of companies impacted with strategic partners to about 3000 SMEs.

Madhav Lal, Secretary, Micro Small and Medium Enterprises inaugurating the Kaizen gallery at the 7th National Cluster Summit in New Delhi

As a part of the countrywide awareness drive, 10 MSME QMS/QTT Awareness Programmes were conducted by the Centre.

Trainings and WorkshopsAbout 60 trainings were conducted in areas such as Manufacturing Excellence, HR, Cost, Energy and Corrosion Management benefi tting about 1500 managers.

Energy and Corrosion Audits, Webinars, Seminars, Road Shows and Summits are regular activities of the Centre.

International CollaborationIndo-German Manager Training Programme (IGMTP) aims at enhancing foreign economic potential of Indian enterprises by establishing contacts with German enterprises. The project has facilitated exports, imports, technology transfers, collaborations, joint ventures etc. It has benefi tted 197 managers, resulting in imports and exports of over 4.48 and 4.85 million Euros respectively,


International delegation at the CII-AVANTHA Centre for Competitiveness for SMEs, Chandigarh

investments in India from Germany 0.42 million Euros and expected to become 1.5 million Euros by end of 2015.

A 20 delegate mission of MSMEs visited Japan under the Quality Management Systems / Quality Technology Tools (QMS/QTT) initiative. Mr. Sanjay Bisariya, Joint Development Commissioner and Mr. Gengamuthu Shanmuganathan, Additional Industrial Advisor, both from the Ministry of MSME, Government of India accompanied the Mission. They visited quality award winning enterprises with a view to understanding how companies in developed countries have adopted QMS/QTT and how they can apply these to upscale competitiveness.

Two international delegations from 20 countries visited the Centre in 2014 to learn how entrepreneurship, competitiveness and leadership are being developed in India.

Enhancing Reach and NetworkingThis year the theme of the Centres annual fl agship event, National Cluster Summit, was Scaling Up Clusters: Fostering Growth and Employment in SMEs. The Summit, organised with the objective to give new direction to the cluster movement and enable networking,

was attended by over 600 delegates including Government offi cials, overseas delegates and industry stalwarts.

Promote Balanced and Sustainable GrowthUnder the Small Industries Development Bank of IndiaGlobal Environment Facility (SIDBI GEF) Project, 26 energy effi ciency audits were conducted. Also, savings worth Rs 12 crore were projected through 27 individual audits. Over 400 managers from 300 units benefi ted from 10 training programmes conducted during the year.

Corrosion Management A Corrosion Management Summit and Certifi cation Workshop organised by CII and the Corrosion Management Committee (CII-CMC) in Coimbatore was attended by over 100 participants. The conference and Certifi cate Training Programme on Surface and Coatings held in Chennai saw participation of 350 and 250 participants respectively.

The Committee also celebrated the Annual Corrosion Research Day as a part of the anti-corrosion drive. Nearly 720 organisations and 1700 managers have benefi tted from 24 Corrosion training programmes. Savings of around Rs 4 crore were detailed through Corrosion Audits.


CII Naoroji Godrej Centre of ExcellenceThe CII Naoroji Godrej Centre of Excellence works towards making the Indian industry, particularly the manufacturing sector, globally competitive by enhancing managerial talent and expertise. The Centre conducts short and long duration Management Development Programmes (MDPs) for middle and senior level executives.

FOCUS The Centre was set up with the aim of enhancing the knowledge base and skills of industry professionals. Approximately 90 programmes are conducted each year in subjects such a manufacturing, fi nance and fi nancial services, Human Resources (HR), Information Technology (IT) and marketing. To enhance the effectiveness of the programmes, the Centre promotes learning in small groups allowing for intensive interaction with the faculty comprising of industry experts and practitioners.

Aligning itself to the vision of both, the nation as well as organisation, the vision of the CII Naoroji Godrej Center of Excellence is to become an International Centre of Excellence for training and development for building a global and competitive manufacturing culture for theIndian industry.

ADVOCACY Building competitiveness in Manufacturing is not only essential, it is critical for India to become a Manufacturing-centric nation. While the countrys growth has been led by the Services sector, there is no denying the fact that manufacturing is important for inclusive growth of the nation; it is manufacturing that has the capacity and capability to provide jobs to millions of unskilled Indians.

ACTION Management Development Programmes In 2014, a total of 93 programmes were conducted which were attended by 1304 managers from 415 companies. Some of the signifi cant programmes included the American Society of Mechanical Engineers (ASME) Certifi cate courses. A large number of other programmes covering Manufacturing, Operations, Supply Chain, and Project Management were also organised. Eight advisory services assignments were delivered in the form of in-company programmes for the following: Pall India Mumbai and Bangalore - Finance for

Non Finance Executives Minda Corporation, Pune - Managing

Contemporary Issues in Supply Chain ITD Cementation India, Mumbai - Optimising

Inventory & Warehouse Management and Procurement & Vendor Relationship Management

Force Motors, Pune - Project Execution Management

Larsen & Toubro, Chennai - Purchase Focused Negotiations

Asian Paints, Mumbai - Service Tax

Prof Leslie Rebello addressing a session on Scientifi c Selection: Behavioural Event Interviews in Mumbai


CII Sohrabji Godrej Green Business CentreThe CII-Sohrabji Godrej Green Business Centre (GBC) is CIIs Developmental Institute on green practices and businesses, offering world class advisory services on conservation of natural resources. GBC is driving excellence in resource conservation, resulting in bottom-line improvement and green corporate image in areas such as energy management, green buildings, green companies, renewable energy and waste management.

FOCUS Facilitate India to become a global leader in

sustainable-built environment by 2025 Provide a holistic framework to evaluate the

industrys on its environmental performance and defi ne the path forward through GreenCo Rating

Facilitate green product market transformation through GreenPro Certifi cation

Enable Indian industry to achieve world class standards in energy management

Promote green technologies

ACTIONGreen Building Movement in India: IGBC is spearheading the green building movement in India with over 3,000 projects covering over 2.65 billion sq.ft. of green building footprint. India is the second country in the world with

largest green building footprint, with projects spread across the 5 climatic zones. IGBC aspires to facilitate 10 billion sq.ft. of green building footprint by the year 2022. IGBC Green Building Rating rates the Green-ness of commercial buildings, landscapes, homes, factories, Mass Rapid Transit system, schools, SEZs, townships and existing buildings. IGBC Rating System has been developed based on the holistic approach of Panchabhutas and is a perfect blend of ancient architectural practices and modern technological innovations.

Launch of IGBC Chapters: IGBC has launched 17 local chapters to take the Green Building concept to the State and Regional levels.

Green Building Congress, 2014: Three MoUs were signed at the Green Building Congress 2014,

From L to R: Gurmit Singh Arora, Co-Chair, IGBC Mumbai Chapter; S Raghupathy, Executive Director, CII-Godrej GBC; ParasuRaman R, Chairman, Green Products & Services Council; Jamshyd N Godrej, Chairman, CII-Godrej GBC and CMD, Godrej & Boyce Manufacturing Company Ltd Dr Prem C Jain, Chairman, IGBC; S Srinivas, Deputy Executive Director, CII-Godrej GBC; Dr S. Padmanabhan, Former Programme Director SARI/E, USAID and B R Ajit, Chairman, IGBC Cochin Chapter at the Workshop on Green Products- Market Transformation held in Mumbai


with the objective of promoting Green Building Concepts. MOUs were signed with: Indian Society of Heating, Refrigerating and

Air-conditioning Engineers (ISHRAE) Energy Effi ciency Services Limited European Solar Shading Organisation

IGBC also launched a portal to enable speedy certifi cation of projects and make the process easier.

GIFT City in Gujarat to be developed as a Model Green city: IGBC and Gujarat International Finance Tec-City Company Limited (GIFTCL) inked a Memorandum of Co-Operation (MoC) to showcase GIFT City as a Model Green City for the upcoming Smart Cities in India.

GreenCo Rating System: The fi rst of its kind in the world, GreenCo Rating provides a holistic framework to evaluate industries on their environmental performance. It provides a roadmap to improve and drive excellence in ecological sustainability. It helps drive excellence in resource conservation, bottom-line improvement, green corporate image and goes beyond compliance.

Today 35 companies are GreenCo rated and over 110 companies are working on the system. Nine companies have reported a recurring saving of Rs 140 million per annum.

GreenCo Forums: These forums are a platform to share, learn and implement green practices and push forth GreenCo movement at city/state level. They focus on promoting green technologies, green services and green investments, organising industrial missions, and developing partnership with industry associations. GreenCo Forums have been launched in Chennai, Mumbai, Pune, Bangalore and Kolkata.

Sustainable Recycling Industries (SRI) Programme: Launched at the Waste

Dr Rajiv Sharma, Chief Secretary to Government of Telangana addressing the CII Energy Effi ciency Summit 2014 in Hyderabad. From L to R: S Raghupathy, Executive Director, CII-Godrej GBC; Dr Naushad Forbes, Vice President, CII and Director, Forbes Marshall Pvt Ltd; D V Manohar, Past Chairman, CII and Chairman, Shri Shakti Group and Kiran Ananth, Senior Counsellor, CII-Godrej GBC

Launch of IGBC Green Mass Rapid Transit System Rating System at 12th edition of IGBC Green Building Congress 2014 in Hyderabad

Recipients of GreenCo Rated companies seen with Mr Suresh Prabhu, Chairperson, Council of Energy, Environment and Water, India at GreenCo Summit 2014 in Chennai

From L to R: Mona Khandhar, Secretary (Housing) Urban Development and Urban Housing Department, Government of Gujarat; Sameer Sinha, Chairman, IGBC Ahmedabad Chapter and Director, Savvy Infrastructure Ltd; Shankarbhai Lagdhirbhai Chaudhari, Minister of State, Health and Family Welfare, Transport, Urban Housing, Government of Gujarat; Anandiben Patel, Chief Minister, Government of Gujarat and M.Venkaiah Naidu, Minister of Housing and Urban Poverty Alleviation, Government of India at the Release of Model Building Byelaws for Sustainable Development of Built Environment in Cities at the 12th Municipalilka Conference 2014 in Gandhinagar, Gujarat


Management Summit 2014, SRI aims at building capacity for sustainable recycling in developing countries. In India, SRI aims to develop local lifecycle inventory data and promotes sustainable recycling of plastics.

GreenPro Certifi cation: The objective of this initiative is to facilitate green product market transformation. Based on a holistic framework, it assesses the Green-ness of a product and highlights the way forward to achieve excellence in environmental performance. GreenPro encourages product manufacturers to implement green measures in product design, raw materials, manufacturing processes, product performance, recycling/disposal, etc

Energy Management: To date GBC has conducted 1,450 Energy Audits resulting in annual recurring savings of Rs. 2,736 million.

Indian Heat to Power Alliance: CII, in partnership with USAID-India launched Indian Heat to Power Alliance, aiming to improve the operating effi ciency of Indian thermal power plants. This alliance will work with stakeholders to develop a service providers network and Model Thermal Plants. It will also undertake collaborative research and solutions development and share information.

World Class Energy Effi ciency Initiatives: GBC is working closely with stakeholders in promoting a world class energy effi ciency initiative in cement, pulp and paper, power and sugar sectors. This initiative facilitates the continuous improvement of the Indian industrys performance to reach world class standards.

Facilitate Promotion of Green Technologies Green Power Market Development Group (GPMDG): GPMDG is CIIs initiative on large scale renewable energy market creation in partnership with World Resources Institute (WRI) and supported by Shakti Sustainable

Energy Foundation (SSEF). This initiative targets facilitation of 1,000 MW of Green Power Procurement by 2020 of which 110 MW was achieved by February 2015.

Smart Power for Environmentally Sound Economic Development (SPEED): GBC, with support from the Rockefeller Foundation, USA and in partnership with other organisations is implementing a Rural Energy Access programme titled Smart Power for Environmentally Sound Economic Development (SPEED). This project aims to provide clean fuels and green energy to rural areas using cell phone towers as anchor loads. Over 12 pilot projects are under implementation and about 20 projects are in the pipeline in Bihar and UP.

Events and Conferences CII Godrej GBC organised various conferences and summits on Green Buildings, Energy Effi ciency and Waste Management. It also recognized companies for Excellence in Energy Management. The objective is to encourage companies to go the GBC way. Key events included: Power Plant Summit Green Sugar Summit Waste Management Summit Conference on Green Interiors Conference on existing buildings Green Landscape Summit

Publications To encourage and inspire stakeholders to go the green way, a dossier showcasing 101 green building projects facilitated and certifi ed by IGBC was compiled as a Coffee Table Book.

IGBC launched the following Rating Systems: IGBC Green New Buildings Rating System IGBC Green Schools Rating System IGBC Green Mass Rapid Transit System

Three publications were released under the World Class Energy Effi ciency Initiative; Best Practice Manual Sugar industry; Energy Benchmarking for Cement Industry and Best Practices Manual -Pulp & Paper industry: Vol: VII


From L to R: Virendra Sinha, Chairman & MD, Balmer Lawrie & Co. Ltd., Sumit Mazumder; Harshavardhan Neotia, Chairman, CII-Suresh Neotia Centre of Excellence for Leadership and Chairman, Ambuja Neotia and T. V. Narendran, MD, Tata Steel Ltd at the 5th National Seminar on Leadership & Organisational Change in Kolkata

FOCUSThe centre focuses on providing cross-sectoral leadership through education, training and consultancy.

ACTIONEnhancing Leadership Through People Transformation A key objective of the Centre has been leadership development at all levels in companies. In 2014-15 the focus areas were: Developing transformational leadership and

nurturing change management by creating vision and strategy roadmaps for change and facilitating communication and implementation of change strategies in organisations.

Analyzing psychological and emotional mapping of employees that provide organisations with information to maximize

performance of employees, eliminate expensive mistakes, wasted resources and time.

Despite the diffi cult economic outlook, helping companies create a strong foundation of people vis-a-vis talent, cost and performance management.

Strategic and Financial ManagementCII-SNCEL helped corporates to assess short and medium term business and fi nancing scenarios and draw up roadmaps for their respective companies by: Helping them to understand the current

economic scenario and likely policy environment in the short term.

Appreciating the prospects for growth and business development as well as leadership challenges involved in an era of recession.

Appreciating technology related imperatives

CII-Suresh Neotia Centre of Excellence for LeadershipThe CII-Suresh Neotia Centre of Excellence for Leadership facilitates development of leadership attributes, skills and appropriate business processes in industry and institutions, which would be the principal drivers for India to emerge as a global business hub.

Sumit Mazumder, President Designate, CII and Chairman & Managing Director, TIL Limited addressing the 6th National Conference on Leadership in Kolkata


and how to manage, or assess new business opportunities in recessionary market conditions.

Developing Business Processes for Achieving Effi ciency and Enhancing Market LeadershipThe Centre provided knowledge and hand-holding to industry to implement tools and techniques to achieve excellence in process quality. Some of these initiatives included:

Implementation of quality management system

Shop fl oor practices to acquire knowledge for productivity improvement including 5S, TPM and Cluster Development

Production planning and scheduling in alignment with market demand fl uctuations

Introduction of Lean Manufacturing, Six Sigma and Value Stream Mapping

Process capability improvement programme to provide insights, practice and experience of process analysis and improvement techniques.

Inventory and supply chain optimization by understanding methodologies and practices to improve inventory processes, customer service, reduce inventory investment and increase productivity

Vendor selection, evaluation and development programme to build competencies in distinguishing between strategic, tactical and operational procurement. Develop a checklist to appraise, evaluate and rate potential suppliers, categorise vendors, distinguish between traditional and partnership supplier relationships and understand benefi ts of vendor development, especially in the SME sector through the lean manufacturing cluster approach.

Project management techniques to balance cost and schedule.

Promotional EventsWhile the core focus remains assisting industry

and sharpening its abilities towards achieving excellence, the Centre also conducted promotional events. CII-SNCEL organised TRAVEL EAST 2014 aimed at promoting travel and tourism.

Wheelz 2014 was organised to encourage interest in the auto and two-wheeler industry.

Alok Mookherjea, Chairman, Advisory Committee, CII Suresh Neotia Centre of Excellence for Leadership and Chairman, Flakt India Ltd. distributing the Kaizen Awards at the Kaizen Competition 2014

Haider Aziz Safwi, Minister for Correctional Administration, Government of West Bengal, Rituparna Sengupta, Actress and Sanjay Buddhia, Chairman, CII National Committee on Export & Export Competitiveness and Managing Director, Patton International Ltd. at the inauguration of Travel East 2014 in Kolkata


From L to R: Dhruv Sawhney, Chairman, CII Triveni Water Institute & Past President, CII and CMD, Triveni Engineering Industries Ltd; Dr A B Pandya, Chairman, Central Water Commission, Ministry of Water Resources, River Development and Ganga Rejuvenation; Salil Singhal, Past Chairman - CII Northern Region & CMD, P I Industries Limited; Dr Nitin Pandit, MD, World Resources Institute, India; Dr Raghu Babu, Senior Technical Advisor & Programme Coordinator, GIZ; M. Satyanarayana, Advisor, National Water Mission, Ministry of Water Resources, River Development and Ganga Rejuvenation, Government of India; Dr Manju Raina, Director (Scientifi c), Ministry of Environment, Forests & Climate Change, Government of India, at the Launch of the Training kit for Wastewater Operators at the 2nd International Conference on Improving Water Use Effi ciency in the Urban Sector to Address Climate Change in New Delhi.

From L to R: Dr Dieter Mutz, Director, Indo German Environment Partnership(IGEP); Dr Manju Raina; Nikhil Sawhney, Member, Advisory Board, CII TWI and Director Triveni Engineering & Industries Ltd; Dr Kapil K Narula, Executive Director and CEO, CII TWI and Gian C Narang, Past Chairman, CII Haryana State Council at the National Conference on Common Effl uent Treatment Plants in India in New Delhi

CII Triveni Water Institute

FOCUS Enabling Indias Progress Towards Achieving Water Security by 2022CII Triveni Water Institute (CII-TWI) aims to create a difference by focusing on improving water use effi ciency, water risk assessment, strategising and mainstreaming water related CSR initiatives, awareness generation, training and implementing scalable solutions and strategies for effective water and wastewater management.

ADVOCACY Skill and capacity development in water and

wastewater management. Basin or watershed evaluation using CII-TWIs

Watershed Evaluation Tool and Water Risk Assessment Tool

Interfacing with municipality and industry, for achieving water security

CII Triveni Water Institute works towards transforming water conservation and management in India by changing the mindset and behaviour of diverse stakeholders resulting in more effective and sustainable water management practices at the grassroots level.

Water audits across industry, municipality, buildings etc

Benchmarking and preparing baselines for improving water use effi ciency


National and international conferences on improving water use effi ciency

ACTIONComprehensive Water Audits for Water Use Effi ciency CII-TWIs water audits across sectors helped achieve a water saving potential of about 60 billion liters as against 40 billion liters during 2013. This is equivalent to supplying drinking water to the entire rural population of India for a day. A Memorandum of Understanding (MoU) was signed with the Steel Authority of India Limited (SAIL) for improving water use effi ciency and water competitiveness in the iron & steel industry. A water audit of one of SAILs integrated iron and steel plants revealed that water savings upto 50-60% of current water use was achievable by adoption of low-medium cost strategies. The Steel plant could potentially save upto Rs. 4-5 lakh/day.

Training Courses for Operators of Wastewater Treatment Plants In 2014 CII-TWI partnered with GIZ India, and DWA, Germany (German Association for Water, Wastewater and Waste), to develop certifi ed training courses for operators and supervisors of wastewater treatment plants in India. Training material and methods deploying advanced tools were developed.

Mr Dhruv M Sawhney, Chairman, CII-TWI, launched the fi rst certifi cate training programme at CII-TWIs fl agship event, 2nd International Conference on Improving Water Use Effi ciency in the Urban Sector to Address Climate Change. The Institute has since conducted two pilot training programmes for wastewater operators.

Wastewater ManagementCII-TWI continued to provide inputs on water and wastewater management to the Government. CII-TWI played an instrumental role in preparing the draft National Policy on CETPs in India. This Policy is an outcome of a study undertaken along with GIZ on demonstrating innovative and fi nancially sustainable solutions for CETPs in

India on wastewater. A comprehensive reference document, fi rst of its kind in India on technical and fi nancially viable solutions for effective design and functioning of CETPs has been prepared

Water Risk Assessment Tool CII-TWI partnered with the World Business Council for Sustainable Development (WBCSD), World Resources Institute (WRI) and 10 Indian industries, in developing an online water information platform that allows measurement and mapping of water risks in India. India Water Tool (IWT 2.0) is a user-friendly Tool for India-wide coverage, based on datasets and models that pass a transparent review process.

Pilot training programme for wastewater operators

Publications Reference document on Common Effl uent

Treatment Plants (CETPs) in India

K B Biswas, Chairman, Central Ground Water Board, Ministry of Water Resources, River Development & Ganga Rejuvenation, Dhruv M Sawhney and the working group members at the launch of the India Water Tool 2.0 inNew Delhi


Training cum Orientation Programme on Agriculture Value Chain & Business Planning for Farmer Producer Company (FPCs) in Patna

CII Jubilant Bhartia Food and Agriculture Centre of Excellence

ADVOCACY The CII National Council on Agriculture works on policy issues that impact overall growth of the agriculture sector and livelihood opportunities of farmers. FACE has initiated a study on agriculture marketing to critically evaluate current marketing practices and their impact on farmer incomes and consumer spending, and suggest appropriate policy reforms. In addition to evaluating barriers in adoption and mechanization a study on custom hiring model in mechanisation was also initiated to identify current challenges and obstacles faced by stakeholders.

ACTIONCapacity Building Through a Collaborative Approach The CII-Spices Board Collaborative Training Centre for Spices and Botanical Ingredients, in partnership with University of Maryland, developed Master Trainers from supply chain management professionals in the spices sector. Six programmes were conducted with more than 375 participants from industry and Government offi cials for further dissemination to farm level.

The IIT-CII-FACE Certifi ed Food Professional Course, aimed at developing world class facilitators for SMEs, covers practical and theoretical food science, laboratory techniques, quality processing technology, food regulations and manufacturing hygiene. Field visits to Keventer, Edward Food Research and Analysis Centre (EFRAC) and Pepsi Co-packer a Face to Face session at IIT Kharagpur, e-learning sessions and a one month industry internship were organised.

The CII Jubilant Bhartia Food and Agriculture Centre of Excellence works towards improving competitiveness of Indias agriculture sector by catalysing innovation, building capacity and enhancing productivity across the agriculture and food value chain.

National Institute of Food Technology Entrepreneurship and Management (NIFTEM)-As mandated by the Ministry of Food Processing Industries, CII FACE conducted a Short Term Training Programme on Food Safety in Quality. One hundred and sixty participants were trained by faculty from QCI-NABCB, ITC Hotels, Mother Dairy, Haldirams, NIFTEM and GSK among others.

The 9th Food Safety and Quality Summit, with IFPRI and MIBRT as Institutional Partners on Excellence in Food Safety and Quality for Consumer Safety and Competitiveness was held in New Delhi. This year a one-day Master class on major pre-requisites to Food Safety was also included. International speakers from USFDA, Federal Research Institute, Germany, & European Union interacted with over 250 participants on the way forward for the industry. The focus was on Industry, Academia and Government collaboration, science based approaches, research, risk analysis, validation audits and harmonisation with Codex Standards for increased trade.


CII National Award for Food SafetyThe Food Safety Award programme has helped CII-FACE reach out to organisations through 88 CII trained assessors from the industry, their suppliers and co-packers from Thiruvallur to Bidadi to Medak, Nelamangala, Pallakad, Aurangabad, Nuh and Palanpur among others. The CII National Award for Food Safety, 2014 saw increased participation from the SME sector. Chairman FSSAI and the FAO India Representative graced the function, where top 6 units in Food Processing were given the highest awards and 30 others were recognised for Food Safety performance.

To promote Hygiene and Food Safety in Street Food, CII assesses Street Food Vendors. Two

such vendors from Mumbai Balaji Fast Food and Roshan Ice Cream received monetary incentives and CII Silver Rating Certifi cates at the Award Ceremony. The initiative has promoted Inclusiveness through the Food Safety Award Programme.

Rural Business Hubs CII FACE collaborated with the USAID to improve agricultural productivity and output in West Bengal and Bihar through the establishment of Rural Business Hubs (RBH).

The Focus in 2014-15 has been on Improving market effi ciency by generating

procurement linkages within value chains. Increasing agriculture productivity through

increased use of agri-innovation Improving market competitiveness

to strengthen responses to market opportunities

Integrating stakeholders across the value chain to improve productivity and market development

A project in West Bengal for the Banana Value Chain aims to introduce G-9 tissue culture banana agro services, input provisioning and buy back arrangement of banana through the RBH. Over 3000 farmers have been mobilized through this project and assured marketing linkages provided through Keventer Agro.

The other project in Bihar is for the Vegetable Value Chain, where RBHs with membership of 5000 farmers have been operationalized and market linkage provided through Knids Green Pvt Ltd.

CII GAIN National Edible Oil Fortifi cation ProjectThe CII GAIN National Edible Oil Fortifi cation Project launched in 2014 aims at building consensus around fortifi cation as a voluntary industry led initiative and generating evidence on merits of business led expansion of a fortifi ed edible oil portfolio.

The Akshaya Patra Foundation, Vasanthapura receiving the award for outstanding performance from K. Chandramouli, Chairman, FSSAI

From L to R: Anuradha P

CII Annual Report 2013-14

Documents

Transcript of CII Annual Report 2013-14