SEMINAR ON “EMERGING ISSUES IN ACCOUNTING AND FINANCE”
Organised by Kalyani University,Department of Commerce, on 20th
November,2015
Department of Commerce,University of Kalyani organized a
one-day national level seminar on
“Emerging Issues in Accounting and Finance” in collaboration with Institute of
Chartered Accountants of India on 20th November,2015.The seminar was
inaugurated by Professor Ratan Lal Hangloo-Vice Chancellor of Kalyani
University and in his inaugural address,he expected the grand success of the
seminar in order to keep transparency of the financial matters of the
university with efficient management of chartered accountings. Prof.Sumit
Mukherjee-the Dean of Arts and Commerce told about corporate auditors in
relation with corporate governance that can maintain transparency and
regulations and he narrated different types of models of regulations.On behalf
of West Bengal Council of Higher Education,Professor Malayendu Saha said on the
outcome of G20 meeting held on November,2015 focussing global financial crisis
and its impact on the global economy especially on inflation,asset
bubbles,growth,exchange rate of US dollar,and FDI.In India the impact on high
inflation in CPI and WPI,index of production current account deficit,are
negative. He mentioned the importance of the theme in regard with corporate
identity as international standard in which ministry of corporate affairs must
do something. He emphasized on uniform syllabus for all universities and need
many integrated phd programme. In the first panel discussion, Professor Pranab
Kumar Bhattacharjee deliberated on capital market where he concentrated on
financial system, money market and capital market.He told that capital market
maintains the value of money and both capital and money market maintain flow of
money in the market.The international financial institutions control over the
capital and money markets.In the panel discussion II,Prof. M.Pal said on “Does
XBRL increase comparability of financial Reports-US experience” where he
stressed on financial reports which can maintain reliability and transparency.In the panel discussion III,CA
Animesh Mukherjee spoke about company’s act2013 in details where risk management
act was the new addition.And in panel discussion IV,Prof.Chittaranjan Sarkar
spoke on Tax Management where direct and
indirect tax, tax paying systems, tax reforms,how to reduce tax burden were
explicitly discussed.
There were more than 130 paper presenters in the seminar.The
papers were classified into four groups such as:Corporate reporting,Capital and
money market,Financing and Taxation,Corporate Governance and others.Most of the
paper presenters are teachers and Phd scholars although a few post graduate
students presented their research papers on above themes.
I had a paper on “Convergence and Cointegration of Credit
Deposit Ratio and GDP growth rate in India” in the theme of Financing and
Taxation.
The abstract of my paper is given below.
Convergence
and cointegration of credit deposit
ratio in India
Dr.Debesh
Bhowmik (Retired Principal)
-Associated with International Institute for Development Studies,Kolkata
-Associate
Editor of Arthabeekshan-the journal of Bengal Economic Association
- Life member, Indian Economic Association
ABSTRACT
This paper endeavours to study the relation between
credit deposit ratio and the GDP growth rate in India using double log model.
The ARIMA(1,1,1) and GARCH(1,1) models were also tested for the credit deposit
series in India during 1970-2014.The Johansen Cointegration test(1988), Johansen
VAR and VEC models (1991,1996)were used to relate GDP growth rate and CD ratio
during 1970-2014. The relation was also verified by the Granger Causality test
(1969). Beta and Sigma convergence tests of Sala-i-Martin(1996) were applied
for credit deposit ratios of 28 Indian states during 2008-09Q4-2015-16Q1.
The paper concludes that one percent increase in
incremental credit deposit ratio led to 0.06628% increase in GDP growth rate
per year during 1970-2014 in India which is insignificant due to
nonstationarity and heteroskedasticity problems of the series. Non-stationary
was verified by ARIMA(1,1,1) model and heteroskedasticity was verified by
GARCH(1,1).The credit deposit ratio and GDP growth rate is cointegrated in the
order of I(1).This relation showed bidirectional causality. The VAR model
between the variables is not stable where the impulse response functions tend
to infinity. All the roots did not lie in the unit root circle, and the
residuals are non-normal and suffer from autocorrelation problem. The VECM
confirmed that the errors are being corrected speedily and significantly where
the VECM is unstable showing some AR characteristic polynomial roots lie
outside the unit root circle. The CD ratios of 28 Indian States did not follow
Beta and Sigma convergence hypothesis of Sala-i-Martin(1996) during
2008-09Q4-2015-16Q1 which is a great barrier for financial development through
financial reform in India.
The paper also suggested some policies within the
jurisdiction of RBI and prescribed some barriers of the policies.
Key
words- Convergence,Credit-deposit ratio,GDP growth rate,Cointegration,VAR,VECM
JEL-C32,C59,
E44,G20
