SEMINAR ON "EMERGING ISSUES IN ACCOUNTING AND FINANCE" IN KALYANI UNIVERSITY

SEMINAR ON “EMERGING ISSUES IN ACCOUNTING AND FINANCE” Organised by Kalyani University,Department of Commerce, on 20^th 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 20^th 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