Boundaries Essay Example | Topics and Well Written Essays - 1000 words

Boundaries - Essay Example In other wise we compartmentalize too much so that our professional lives cause damages to our private lives. This paper analyses the necessities of achieving work-life balancing. Manpower shortage, especially skilled manpower shortage is one of the major problems, in European and American countries. Volume of work and manpower shortages is increasing day by day which force organizations in these countries to ask their existing employees to stay back for overtime on a regular basis. For example, nursing professionals in these countries forced to work even up to 16 hours per day because of the shortage of nursing professional in these countries. Many of the IT organizations in these countries are outsourcing their jobs to countries like India and China in order to tackle the manpower shortage problems. Globally, the regular working hours of an employee is fixed to eight hours per day because of the necessities of ample rest a person needs before starting another day in the office. An employee needs to maintain his physical and mental health for delivering his maximum productivity. However, organizations of the modern era are forgetting about it and asking their employees to work overtime on a regular basis which is creating problems in their personal life. The overload of work often forces the employee to forget his family commitments and family problems may start to develop in his life. â€Å"Workers in poorer quality jobs (with poor job security, work overload, low levels of time and task autonomy, low flexibility and low job satisfaction) have worse work-life interference than those in better quality jobs† (Pocock et al p.7). Former French president Jacques Chirac also expressed similar concerns. In his opinion, â€Å"poor work-life balance arises from long and intense working hours may enhance the productivity of the organizations; however, better productivity should not come at the expense of the quality of life and social cohesion† (Bloom et al,2006, p.5). (Bloom et al, p.5). Man is a social animals rather than a machine. Moreover, he has emotions, feelings and thoughts which segregate him from other objects in this world. He is working for living, not living for working. But many of the organizations perceive the employees just like machines. Machines do not need rest or break until it damages. It is impossible for a person to work in that manner because of the non-mechanistic components present in him. Johnson (2008) also expressed similar concerns. In his opinion, â€Å"Extended working hours and more than required time spent at work place paves way for health complaints and too much of stress that can lead to injuries like an accident when driving†(Johnson). It is difficult for a worker to concentrate on a particular topic more than certain time period. Body and mind should cooperate properly to fix the attention of a person on a particular topic for longer period. Both body and mind needs periodical relaxati on or rest in order to function properly. Long working hours will destroy both body and mind which may reflect in the personal and professional life of a person if he forced to work longer periods continuously. â€Å"Heart diseases, fatigue, stress, depression, chronic infections, diabetes, back aches, general health complaints and death are some of the grievances one has to face while working late and for long† (Johnson) The morality of asking employees to work for

The supreme law of the State Essay Example for Free

The supreme law of the State Essay The supreme law of the State assures protection of citizens against unlawful intrusions against their constitutionally guaranteed rights. One such confirmation of this assurance is the establishment of the exclusionary rule. Said rule prohibits the use or introduction of any evidence that has been obtained in violation of the rights granted to citizens by no less than the Constitution. Under this rule, regardless of the materiality or relevance of a certain piece of evidence to the prosecution of a crime or an offense, it cannot be admitted by the court if the same was acquired through the use of means which constitute unlawful intrusions against the rights of the accused or the person being investigated for the commission of an offense. Some would argue that the existence of said rule makes it difficult to prosecute individuals who are guilty of transgressing the law due to the fact that a quantity of evidence would have to be excluded in view of irregularities attendant in procuring said evidence. It must be noted however, that regardless of the difficulty in prosecution brought about by the exclusionary rule, said difficulty cannot be considered as enough justification for the abolition of said rule. It is opined that the exclusionary rule should not be abolished as the same does not only recognize and respect the rights of the citizens, but it also endeavors to strengthen the policy of gathering evidence within the bounds of law. Without the exclusionary rule, prosecution of offenses may be unproblematic and uncomplicated yet this could also lead to giving the authorities unbridled discretion in bringing together evidence and proof implicating an individual to the commission of an offense. In such a case, there exists a huge possibility that the rights of the person being investigated will be disregarded as the process of obtaining evidence for purposes of prosecuting an individual would be open to abuse by the authorities. This would clearly run counter to the protection granted by the Constitution to the rights of the citizens. In upholding the exclusionary rule, individuals are assured that evidence put together may only be used against them if the same was acquired in accordance with law. It is noteworthy that the law provides for the proper procedure in seizing evidence which is material to a particular case. As illustrated in the 1968 United States case of Terry vs. Ohio (392 U. S. 1, 88 S CT. 1868, 20 L. Ed 2d. 889), absent circumstances which would necessitate obtaining evidence or searching the accused without following the proper procedure laid down by law, the same cannot be considered as reasonable, and hence, any evidence gathered is deemed excluded. It thus appears that the exclusionary rule serves a dual purpose of ensuring respect for the constitutionally guaranteed rights of every citizen and making sure that lawful means are observed by authorities in obtaining evidence for the prosecution of a certain crime or offense. It is believed that there exists no cogent reason for abolishing the exclusionary rule. True, said rule may have made evidence gathering a grueling task for officers, but the rule also proved how the State values the interests and rights of its citizens.

Peanut Butter and Jelly Sandwich :: Descriptive Writing Examples

Peanut Butter and Jelly Sandwich    Are you tired of slaving over a hot stove? Are you tired of wasting countless hours waiting for some rotten meat to cook? Are you run down or restless worrying weather your kids will like whatever meal you cook? Well, if so, then this sandwich is for you! It is easy to make and we will guarantee at a cheap price, you can't go wrong. It is nutritious and with the large amount of calcium it is even a healthy snack that is great for a growing child! You won't need to waste stove work for this! All you need is a knife, peanut butter, and jelly! With all of the work you have you don't need another burden! Just make a quick and easy sandwich! Try it! It is YUM YUM good!    One can find a loaf of bread at any local super market in the bakery Isle or they could find it is a local bread store. There are many different types of breads so one may choose which is sufficient to ones needs. After one purchases the bread, take it back to where one will be making the sandwich and set it on a flat surface. One will see that the loaf has two ends on it. One is clued shut very snuggly and the other side a white twist tie is holding the two ends together. (If one does not know what a twist tie is go to the last page of this essay.) Grab the two ends of the twist tie and turn each end every way until you can see that it is coming undone. Once the twist tie is fully unattached to the loaf of bread, you can now work your way into the loaf by pulling the ends that were connected to the twist tie. Pull out two pieces of bread out of the bag and setting them on the flat surface that you chose. Set them slightly close together so when one goes to coat the bread with peanut butter and jelly.      Ã‚  Ã‚  Ã‚  Ã‚   One can find peanut butter in any local supermarket. There are many different Varieties, and after one has purchased the peanut butter, take it back to where

Non Tariff Barriers

NON TARIFF BARRIERS What are non tariff barriers? Non- tariff barriers are broadly defined as any impediment to trade other than tariffs. Non tariff barriers can be classified into two groups; Direct and Indirect. (a)Direct Barriers are barriers that specifically limit import of goods or services. Eg: Embargoes and quotas EMBARGOES: Embargoes are the most restrictive of the direct non tariff barriers. They are either a complete ban on trade with a foreign nation or a ban on sales or transfer of specific products. Eg: The U. S. has imposed embargoes on Afghanistan, Cuba, Iraq and Iran. QUOTAS: Quotas are a quantitative restriction on imports. They are based on either value of goods or on quantity. They can be placed on all goods of a particular kind coming from all countries, a group of countries or only one country. (b) Indirect Barriers are laws, administrative regulations, industrial/commercial practices and even social and cultural forces that either limit or discourage sale or purchase of foreign goods or services in a domestic market. To restrict imports, countries may impose monetary or exchange controls on currencies. Foreign governments can impose technical barriers to trade, for example, performance standards for products, product specifications or products safety. Eg: Japan has governmental restrictions on the use of food preservatives. It is a trade barrier in disguise, because foods without preservatives cannot be transported long distance. Import Licensing Schemes and Customs Procedures Some governments require importers to apply for permission to import products, subjecting them to complex and discriminatory requirements. It is often expensive and time-consuming. Let us look at some tariff measures that are maintained against Indian exports: 1)Country- The United States of America Product- Marine Products Non tariff barrier- Increased in-detailed inspections under the Bio-Terrorism Act. -Customs Bond requirement -Mandatory labeling discriminating ‘farm-raised’ & ‘wild’. -Punitive fines in case of non-compliance -Non-recognition of EIC certification 2)Country- Columbia Product- Pharmaceuticals Non tariff barrier – Registration by Columbian Drug Control and Certification takes 11-12 months and is very tedious. Inspections are undertaken for environmental compliance and punitive fines are levied in case of non-compliance 3)Country- Bangladesh Product- Poultry products Non tariff barrier- Bangladesh continues to ban imports of poultry products despite India gaining the ‘Avian influenza free’ status. )Country- Chile Product- Wheat, wheat flour, sugar Non tariff barrier- Complex price band system -A minimum import price (well above international and domestic prices) is stipulated. The Argentinean Customs can ask for validation of Indian Customs Invoice and a full set of original documents if they suspect that the invoiced value is less than the minimum import price established. 5)Country- China Service- Banking Non tariff barrier- China maintains a number of regulatory barriers which make investment in the banking sector very difficult. While foreign banks are allowed to open branches, regulatory treatment remains discriminatory. Branches of foreign banks are for example subject to higher capital norms than Chinese banks, which moreover are coupled with the number of their offices. Costs for establishing bank branches in China are therefore very high and foreign banks market share in China remains marginal REFERENCES International Business Law and its Environment- Richard Schaffer, Filiberto Augusti & Beverly Carle International Business- Francis Cherunilam

Being Single

Being  single doesn't necessarily mean you're available. Sometimes you have to put up a sign that says, â€Å"Do Not Disturb† on your heart. | If  you aren't happy being single you will never be happy in a relationship. Get your own life and love it first, then share it. If  you're single, focus on being a better you instead of looking for someone better than your ex. A better you will attract a better next. Being  single doesn't necessarily mean one is not wanted. In many cases it means that one knows what they want and if they can't find that someone special then they'll remain single forever because they're OK and happy with who they are and just want that someone special to complete them and take their happiness a higher level. â€Å"Being single† is a term used to describe the state of a person being single and not committed. A single person unlike a committed person is not involved in any relationship. A single person has a multitude of friends and acquaintances and enjoys his single status. Being single is a privilege for many, since they are free to live life individually, without the pressures and expectations that are often associated with a committed relationship. Life is truly an unpredictable affair and you have no idea about how it can change at any point of time. So, people some people prefer being single rather than getting committed to someone. Dealing with relationships and making them successful is not everyone’s cup of tea. Relationships require emotional investment, as well as a lot of time to make things work. So, staying single is what people prefer usually. Stephanie Mills had once remarked, â€Å"I enjoy being single, but I loved being married. †

Barn Burning by William Faulkner essays

Barn Burning by William Faulkner essays Destruction by burning can be seen in more than one way in "Barn Burning" by William Faulkner. The most obvious act of burning down barns is an outward expression of Abner's inner turmoil for the life he bitterly hates. The impact of Abner's violence can be seen in Abner's family, especially Sarty as he comes to see the destruction his father causes. This paper will examine the impact of Abner's anger and how it effects his Abner's anger causes his son to feel distant from him. We can see how Sarty comes to realize this only as a grown man when we are told, "Later, twenty years later, he was to tell himself, `If I had said they wanted only truth, justice, he would have hit me again'" (477). We can also pull from the text that Abner is able to tolerate his landlords' insults because he knows he can always get even by burning a barn. It seems as though Abner experiences great pleasure of being able to determine the time and place of a burninggenerally after he has found another place for the family to live. The burning not only allows Abner to control his own anger; the burning allows him to control his landlord's reaction. Because he is burning down precious property, Abner almost guarantees his escape because the landlord will work to put out the fire than chase after Abner and his family. The fires Abner sets serve as reminders for his family as well as serving as a reminder for Abner to control his rage. Because the fires are so well controlled, they represent Abner's passion and energy. This result of this passion is Abner's one and only tool he has to wage war on his landlords. In fact, we are told it is, "the one weapon for the preservation of integrity, else breath were not worth the breathing, and hence to be regarded with respect and used with discretion" (476). Sarty spends most of the story trying to avoid reacting to his father's ...

use of pectinase in the produc essays

use of pectinase in the produc essays Use of pectinase in the production of fruit juice. In industry, the enzyme pectinase is used in the production of fruit juices. This is mainly because the enzyme breaks down pectins, which are found in plant cell walls, increasing the yield of juice from the fruits by 20% and only 150cm ³ may be required for a tonne of apples. Each year, tonnes of apple juice is produced and using the enzyme pectinase enables the business to continue running as it saves on costs. The diagram shows where the pectin comes from in a plant. It is gel like and forms the middle lamella layer which sticks adjacent cells together. Methods and Materials: See practical guide Table 1 shows the amount of apple juice produced in each cylinder, pectinase present or control. Time (mins) Pectinase (ml) Control (ml) The results show that the cylinder which contained pectinase produced more apple juice than the cylinder with just water in it. The results show that the cylinder with pectinase used, produces much more apple juice than the control. This shows that the enzyme pectinase has a great effect on the volume of juice produced. During the reaction, pectinase breaks down pectin in to smaller soluble molecules, resulting in more juice production. Pectin is a polysaccharide that is present in and between plant cells which causes two adjacent plant cells to stick together. Pectin is broken down by pectinase. Pectinase is actually a group of enzymes which break down various structural components of pectin. Industry uses pectinase to increase the yield of apples cranberries and grape juices. Pectinase increases yield by breaking down pectin holding the juice in. At first the juice appears cloudy, pectinase then makes the juice clearer by breaking down the bits of cell whi ...

The Varied Size of the Roman Legions

The Varied Size of the Roman Legions Even in the course of a military campaign, the size of a Roman legion varied because, unlike the case of the Persian Immortals, there wasnt always someone waiting in the wings to take over when a legionary (​miles legionarius) was slain, taken prisoner or incapacitated in battle. Roman legions varied over time not only in size but in number. In an article estimating population size in ancient Rome, Lorne H. Ward says that up to at least the time of the Second Punic War, a maximum of around 10% of the population would be mobilized in the case of a national emergency, which he says would be about 10,000 men or about two legions. Ward comments that in the early, close-to-annual border skirmishes, only the number of men in half a conventional legion might be deployed. Early Composition of the Roman Legions The earliest Roman army consisted of a general levy which was raised from the aristocratic landowners .... based on the three tribes, each of which provided 1000 infantry.... Each of the three corps of 1000 comprised ten groups or centuries, corresponding to the ten curiae of each tribe.- Cary and Scullard The Roman armies (exercitus) were composed mainly of Roman legions from the time of the legendary reforms of King Servius Tullius [also see Mommsen], according to ancient historians Cary and Scullard. The name for the legions comes from the word for the levy (legio from a Latin verb for to choose [legere]) that was made on the basis of wealth, in the new tribes Tullius is also supposed to have created. Each legion was to have 60 centuries of infantry. A century is literally 100 (elsewhere, you see a century in the context of 100 years), so the legion would have originally had 6000 infantrymen. There were also auxiliaries, cavalry, and non-combatant hangers-on. In the time of the kings, there may have been 6 centuries of cavalry (equites) or Tullius may have increased the number of equestrian centuries from 6 to 18, which were divided into 60 units called turmae* (turma in the singular).Increasing Number of LegionsWhen the Roman Republic started, with two consuls as leaders, each cons ul had command over two legions. These were numbered I-IV. The number of men, organization and selection methods changed over time. The tenth (X) was Julius Caesars famous legion. It was also named Legio X Equestris. Later, when it was combined with soldiers from other legions, it became Legio X Gemina. By the time of the first Roman emperor, Augustus, there were already 28 legions, most of which were commanded by a senatorial legate. During the Imperial period, there was a core of 30 legions, according to military historian Adrian Goldsworthy. Republican Period Roman ancient historians Livy and Sallust mention that the Senate set the size of the Roman legion each year during the Republic, based on the situation and available men. According to 21st-century Roman military historian and former National Guard officer Jonathan Roth, two ancient historians of Rome, Polybius (a Hellenistic Greek) and Livy (from the Augustan era), describe two sizes for Roman legions of the Republican period. One size is for the standard Republican legion and the other, a special one for emergencies. The size of the standard legion was 4000 infantry and 200 cavalry. The size of the emergency legion was 5000 and 300. The historians admit of exceptions with legion size going as low as 3000 and as high as 6000, with cavalry ranging from 200-400. The tribunes in Rome, after administering the oath, fix for each legion a day and place at which the men are to present themselves without arms and then dismiss them. When they come to the rendezvous, they choose the youngest and poorest to form the velites; the next to them are made hastati; those in the prime of life principes; and the oldest of all triarii, these being the names among the Romans of the four classes in each legion distinct in age and equipment. They divide them so that the senior men known as triarii number six hundred, the principes twelve hundred, the hastati twelve hundred, the rest, consisting of the youngest, being velites. If the legion consists of more than four thousand men, they divide accordingly, except as regards the triarii, the number of whom is always the same.- Polybius VI.21 Imperial Period In the imperial legion, beginning with Augustus, the organization is thought to have been: 10 squads (contubernia - a tent group of generally 8 men) a century, each commanded by a centurion 80 men [note that the size of a century had diverged from its original, literal meaning of 100]6 centuries a cohort 480 men10 cohorts a legion 4800 men. Roth says the Historia Augusta, an unreliable historical source from the late 4th century A.D., may be right in its figure of 5000 for imperial legion size, which works if you add the 200 cavalry figure to the product above of 4800 men. There is some evidence that in the first century the size of the first cohort was doubled: The question of the size of the legion is complicated by the indications that, at some point subsequent to the Augustan reform, the organization of the legion was altered by the introduction of a doubled first cohort.... The principal evidence for this reform comes from Pseudo-Hyginus and Vegetius, but in addition there are inscriptions listing discharged soldiers by cohort, which indicate that about twice as many men were discharged from the first cohort than from the others. The archaeological evidence is ambiguous... at most legionary camps the pattern of barracks suggests that the first cohort was of the same size as the other nine cohorts.- Roth * M. Alexander Speidel (Roman Army Pay Scales, by M. Alexander Speidel; The Journal of Roman Studies Vol. 82, (1992), pp. 87-106.) says the term turma was only used for the auxiliaries: Clua was a member of a squadron (turma) - a subdivision known only in the auxilia- led by a certain Albius Pudens. Although Clua named his unit simply by the colloquial expression equites Raetorum, we can be certain a cohors Raetorum equitata was meant, perhaps cohors VII Raetorum equitata, which is attested at Vindonissa during the mid-first century. The Imperial Army Beyond the Legions Complicating questions of the size of the Roman legion were the inclusion of men other than the fighters in the numbers given for the centuries. There were large numbers of slaves and civilian non-combatants (lixae), some armed, others not. Another complication is the likelihood of a double-sized first cohort beginning during the Principate. In addition to the legionaries, there were also auxiliaries who were mainly non-citizens, and a navy. Sources Roman Population, Territory, Tribe, City, and Army Size from the Republics Founding to the Veientane War, 509 B.C.-400 B.C., by Lorne H. Ward;  The American Journal of Philology, Vol. 111, No. 1 (Spring, 1990), pp. 5-39A History of Rome, by M. Cary and H.H. Scullard; New York, 1975.The Size and Organization  of the Roman Imperial Legion, by Jonathan Roth;  Historia: Zeitschrift fà ¼r Alte Geschichte,  Vol. 43, No. 3 (3rd Qtr., 1994), pp. 346-362How Rome Fell, by Adrian Goldsworthy; Yale University Press, 2009.

Scientific Writing Essay Example | Topics and Well Written Essays - 500 words - 2

Scientific Writing - Essay Example Obakata and many of her co-authors are part of the research teams of the Riken Center for Developmental Biology in Kobe, Japan. Other Riken researches, however, tried to replicate Obakata’s study and did not find supporting evidence. As a result, it launched an investigation that proved that the research has serious data flaws. Obakata has retracted these two papers from Nature because of allegations of changing data and plagiarism. An investigating committee has found her guilty of fabricating and falsifying data, and she now faces potential dismissal from Riken and losing her doctorate degree. The investigating committee discovered that Obakata may be involved in falsifying and fabricating data. The committee noted that when they studied the DNA images of Obakata’s work, one DNA was spliced from two DNAs. The head of the committee, Shunsuke Ishii, stated: â€Å"The manipulation was used to improve the appearance of the results† (Sample, 2014). Obokata insisted that she only wanted to improve the clarity of the image and not to change the data itself (Sample, 2014). Changing DNA images suggests falsifying data results. In addition, Obakata fabricated data when data inconsistencies are found in her work. She told her co-researcher Teruhiko Wakayama that the green fluorescent protein (GFP) that they used to tag changes in expression of experimental gene is on the 15th chromosome (Cyranoski, 2014). Wakayama tested the mice and found the STAP cells through the GFP in the 18th chromosome (Cyranoski, 2014). Furthermore, the committee noted that Obakata reused data from her dissertation, which also means that she falsified her research by including data that were not part of her original research (Japan Times, 2014). Fabricating and falsifying data are serious accusations, though Obakata stressed that she did not change or add anything to her data (Cyranoski, 2014). Apart from data falsification and

A Good Man is Hard to Find Research Paper Example | Topics and Well Written Essays - 2000 words

A Good Man is Hard to Find - Research Paper Example Flannery’s second published work, the group established a major voice in American literature mainly Southern literature, up to the time she died in 1964, at the age of 39. Flannery’s novels were viewed as critically less fortunate. The story made her famous as a modern master of the short story. During OConnors lifetime, her work initiated different reactions in those who read them. Many scholars and critics found the work consistently grotesque in their description of debased repulsive characters and their spectacular displays of violence. Many times "A Good Man is Hard to Find," were the center of discussions. It was for that reason, the story about which the author herself spoke most often.Flannery saw all of her fiction, including those of the short story, as realistic but ultimately hopeful. Her inspiration as a writer came deeply felt in Roman Catholicism, of which she claimed informed all of her stories. According to (Fitzgerald 90)Flannery said that the stories she had written were hard since there is nothing difficult or less sentimental than Christian realism.A continual theme all through her work was the deed of divine grace in the imperfect, revolting and funny world of human beings. Mary Flannery O’Connor born in Savannah, Georgia in the year 1925. She thenrelocated to Atlanta with her family while she was a teenager (Gooch). The family, however, after the father was diagnosed with lupus moved to Milledgeville, Georgia. The fatherdied three years later; she was fifteen years by then.O’Connor, as a young woman, began classes at Georgia state College for women. A wishful writer since childhood, she worked for the student newspaper and literary magazine, she also wrote stories. The stories that she wrote secured her a place in the University of Lowa’s Writer Workshopfor a master’s program. In the university, she sharpened her craft and began publishing fiction. O’Connor published

Daniel's Quest Essay Example | Topics and Well Written Essays - 500 words

Daniel's Quest - Essay Example Daniel Lewin is the main character who tries to find the truth about his parents executed for 'stealing' technology secretes for Russia. These events took place many years ago, but they are still important for Daniel who cannot overcome grief and depression. Doctorow depicts that Daniel has a happy family, son, beloved sister Susan, a good job and opportunities, but he cannot bear with the death of his parents. Daniel's quest is a search for truth and good name of his family accused in espionage. "Daniel" writes: "If justice cannot be made to operate under the worst possible conditions of social hysteria, what does it matter how it operates at other times" (Doctorow 1996, 56) Through the characters of Daniel Lewin Doctorow unveils such important life stages as the process of becoming an 'adult' and new perception of self. In spite of the fact that Daniel is a mature person he is bound by memories and deep emotional experience. Doctorow describes that history and its examples become an important moral guide for Daniel to overcome life troubles and depression. In general, the author's emotions are mixed about moving beyond adolescence, because this new life stage deprives everyone of his ingenuousness.

Current issues in second language learning Essay

Current issues in second language learning - Essay Example e constructivist approach, wherein the learner needs to be actively engaged in the learning process through his/her interactions with the environment. The role of a teacher within a constructivist framework would be largely a facilitative one – aiding a student to learn by encouraging him/her to construct, rather than the traditional role of supplier of information. The policy of Constructivism takes into account the nature and development of knowledge and according to Van Glasersfeld, constructivism is a "theory of knowledge with roots in philosophy, psychology and cybernetics."1 Therefore, when learning is examined from a constructivist perspective, there is an underlying implication that the manner in which knowledge is constructed within an individual’s mind is fashioned by the environment that he is subjected to. Therefore teaching methods must be modified accordingly in order to accommodate learning practices. For instance, if students are perceived as mere learning receptacles, then teaching would constitute only the transmission of knowledge however, when applying constructivism, the knowledge that is being transmitted will be additionally processed by a student, then the teaching approach must incorporate attempts to transmit meaning and understanding to the students to help them make sense of their world2. The Constructivist approach transforms the learning process into a one on one process between an individual and his environment. Knowledge becomes intimately associated with and unique to every individual learner, since it is not an absolute entity existing as a separate external reality but rather it is integral to every learner whose knowledge will be conditioned by his/her own experiences. Therefore, applying this principle, reality is made up of â€Å"the network of things and relationships that we rely on in living.†3 Hence reality will be interpreted and constructed in accordance with the individual learner’s experiences and interactions

Unit2 Chinese literature paper Essay Example | Topics and Well Written Essays - 750 words

Unit2 Chinese literature paper - Essay Example It is important to remember however that such kings were as often â€Å"created† by poets and philosophers (like Confucius) as examples. Whether they were actually wise or not is difficult to determine. It was in their interest to appear to be so. One of the reasons this idea of the Sage King became more popular as China transitioned into a feudal period was not only because it introduced an element of accountability into questions of leadership but because it focused on virtue. Leaders were to be good and rule for the good of the people, not to treat the country as their personal territory or the people as their own vassals. But virtue, as Duke of Zhou writes, is not enough: â€Å"The mandate of heaven is not easily [preserved] . . .†2 The key is to respect your ancestors and lead in the way they have done too. This speaks to an inherent stability and conservativism in Chinese politics at the time. Leaders at the time were trying to establish and confirm a new way of doing politics at the time, they were trying to introduce new ideas. Instead of basing their principles on radicalism and revolution, they did their best to appeal to the past. This almost certainly made it easier for them to appeal to ordinary people for their success. Part of the message sent out by sage kings was not more complicated than â€Å"respect your parents.† Most people can get behind a message like this. It is hard to say much more about sage kings without reference to Confucius. This was a great philosopher who thought people who were honest and virtuous should be chosen to guide the multitude. He also believed that a leader must first govern himself, before he would be able to govern other people. Confucius appeared to have a great deal of respect for the Duke of Zhou and for much of the philosophical ideas about leadership mentioned above. Much of his thinking can also be attributed to the disunity undergoing this later period of Chinese history—he

Auditing research paper Essay Example | Topics and Well Written Essays - 500 words

Auditing research paper - Essay Example The digital sales increased by 53% over last year and net earnings increased by 6.9% to $80.4 million. Earnings per share went up by 17%. (GameStop Reports†¦) Due to previously announced planned investments and due to some strategic initiatives the earning per share in second quarter is likely to decline by $0.04 per share. The full year diluted earnings per share is estimated at $2.82 to $2.92 that is a rise of 6.4% to 10.2% over the last year of 2010. That means net earnings will be in the vicinity of $440 million to be up by almost 8-9% in comparison to last year of 2010. (GameStop Reports†¦) On the matter of quality of earnings, It will be pertinent to state that GameStop achieved record sales of $9.47 billion and net earnings of $408 million (up by 8.1%) in the year 2010. The last year’s earnings in the difficult market condition should be considered good as it shows increase in earnings by almost 8%. Net earnings to sales ratio is 4.3% that is also commendable. GameStop could generate $590 million of operating cash flow and reduced debt by $200 million that truly displays the quality of its earnings. (Brightman 2011) In view of the solid earnings performance, BB&T Capital Markets upgraded GameStop from hold to buy ratings with a $32 price target. The main reason for upgrading cited by BB&T is declining competition in the high margin used game market. Overall capital market’s response to the company was quite encouraging last year (Wilcox, 2010). Lazard Capital Market analyst commented stating that this is a notable achievement. He further stated that even assuming slow growth, digital will promise more than 0.5 billion revenue to GameStop in next two years. GameFly is a new entrant in the capital market hence it will take some time to have full-fledged financial data of the company; however, when compared with industry average it is found that GameStop is a low debt company that certainly displays it strength. Even

Unit2 Chinese literature paper Essay Example | Topics and Well Written Essays - 750 words

Unit2 Chinese literature paper - Essay Example It is important to remember however that such kings were as often â€Å"created† by poets and philosophers (like Confucius) as examples. Whether they were actually wise or not is difficult to determine. It was in their interest to appear to be so. One of the reasons this idea of the Sage King became more popular as China transitioned into a feudal period was not only because it introduced an element of accountability into questions of leadership but because it focused on virtue. Leaders were to be good and rule for the good of the people, not to treat the country as their personal territory or the people as their own vassals. But virtue, as Duke of Zhou writes, is not enough: â€Å"The mandate of heaven is not easily [preserved] . . .†2 The key is to respect your ancestors and lead in the way they have done too. This speaks to an inherent stability and conservativism in Chinese politics at the time. Leaders at the time were trying to establish and confirm a new way of doing politics at the time, they were trying to introduce new ideas. Instead of basing their principles on radicalism and revolution, they did their best to appeal to the past. This almost certainly made it easier for them to appeal to ordinary people for their success. Part of the message sent out by sage kings was not more complicated than â€Å"respect your parents.† Most people can get behind a message like this. It is hard to say much more about sage kings without reference to Confucius. This was a great philosopher who thought people who were honest and virtuous should be chosen to guide the multitude. He also believed that a leader must first govern himself, before he would be able to govern other people. Confucius appeared to have a great deal of respect for the Duke of Zhou and for much of the philosophical ideas about leadership mentioned above. Much of his thinking can also be attributed to the disunity undergoing this later period of Chinese history—he

Report on apple and INTO giving Assignment Example | Topics and Well Written Essays - 750 words

Report on apple and INTO giving - Assignment Example It raises funds through various activities such as the 2009 event when they drove three second hand vehicles across many countries to raise money for charity in Gambia (Finkle and Mallin, 2010). Apple is a corporation and a profit making organization, it is owned by different shareholders (Dediu, 2013). On contrary, INTO Giving is a non-profit making organization. It is owned by INTO university partnership with the aim of facilitating education access to the less fortunate children in the world. The fact that the ownership is different, it’s suitable since the owners have different interests in the organization. Apple`s owners are profit driven while INTO Giving`s owners aim at helping the needy. INTO Giving has an organization structure that comprises the following, the board chairman, director and Treasurer, operations director and the fundraising and communications manager. The members of this organization`s manages the organization to meet the charity work which is its main. On the other hand, apple has an organization structure that comprises the following, the board chairman, senior vice presidents from various departments, vice presidents and the employees (Dediu, 2013; Yang, 2013). The structure of the two organizations differs because of their goals of operation resulting to omission of some departments. (Polidoro, 2012) It is the beliefs, values, norms, languages, way of doing things and habits in an organization (Ravasi and Schultz, 2006). Apple’s culture is collaborative and the company is organized like a start-up. The company recognizes performance and awarding its best employees (Yang, 2013). The Company also insists on accountability for all its employees, a culture it has maintained to date. On the other hand, INTO Giving has maintained a culture of monitoring the performance of its employees across the many countries it offers its charity services. INTO Giving mission states,

Late Adulthood Essay Example for Free

Late Adulthood Essay As we all get older we wonder what is going to happen to us. What does our body go through and why? Do you ever wonder why things happen when you get older instead of happening in your middle age time of life to prepare you for what is coming and help you deal with things a little easier? What happens to your mind and why does it happen? Well, those are just some of the things that go through the people in the late adulthood. Some of the questions are always asked by people that are in their late adulthood. My research is important because, it will help people in the late adulthood better understand what happens as they get older and help the middle age people understand what they may go through as they get older. Everyone’s body ages differently and some just do not understand what can happen or what may happen. To help the people in the world through life a little easier and maybe even give them a chance to get the help they need before it is too late and things get worse or causes more problems with themselves or their families. The study will help us better understand the different life spans of a human through their different stages in life. Help understand why our mind is not as functional as it was in our middle age time. Help understand why our body changes with time. This study will help the people as much as it will help us. We may be able to find a way to help the middle age prevent from going to memory loss and even psychology show them that there is maybe a way to go through a process in their time of age a little easier to where we can keep them from getting an eating disorder and find out why that happens when they get older. This will help us better understand why Alzheimer’s is just a problem and maybe do some research and see if we could understand mentally where they are in the state of mind they in and better understand this disease. This study will consist of talking to different middle aged and late aged people. We will be doing a lot of different memory test as well as psychological tests. The research that I have done so far as far as the middle age as well as the late age group of people and have found it very interesting how to different age groups are going through similar experiences mentally and physically in life with their body as well as their minds and also and most important emotionally. The similarity was very interesting because, I asked a 40 year old person and then asked a 61 year old person the same questions and one being a female and the other a male and the answers were very similar and that is amazing and made me wonder why and how that is. My intent is to find out the why the middle age starts at a certain age and what the difference between the middle age to the late age besides the ages. Why people feel after they get to a certain age they feel their feelings and emotions change. Why do they feel that they are not attractive besides their age? Why do they start losing their memory at a certain age? Why is the depression is so much stronger when they get to the late adulthood and why it starts hitting at the middle age, people start getting scared and feels that their lives are ending instead of making their lives the best everyday they are alive. This study is a long study that will take a while to do. If we do the right test and a lot of observation we should be able to show some progress and theories on why things happen the way they do. This research will help us better understand the different stages of life and maybe help make it a little better for the process of aging and better understand. As people get older they feel that no one understands what they are going through. Well, I want them to understand that there are some people out that are willing to try to understand what they are going through in life as well as emotionally and physically. There are a lot of people that are denying what is going on with them and they are looking for help. Researchers have tried to understand the different stages of life but, that was in the past. There has been a lot of change and a lot more discoveries in the world today and new research and understanding has to be done. So with the new research we do and explore more depth into our research to figure out what wasn’t figured out in the past or figure out what is new and why that happening is will better help the people as well as the future researches that are going to wonder the same things or start were we left off. Do you sit back and wonder why we deny that we are getting older? Why do you think that is? Do you wonder why you get as depressed as you get older and you feel like you are just not you anymore? Do you wonder why your acceptance of who you are is not the same which in return sends you on many other paths in life? With this research it may answer a lot of these questions and maybe even more. There is so much to learn we just need the chance to do it and better understand the life development.

Regulatory Frameworks of Indias Industrial Policies

Regulatory Frameworks of Indias Industrial Policies CHAPTER 3 THE REGULATORY FRAMEWORK 3.1 INTRODUCTION: THE PARADIGM SHIFT The industrial policy pursued in India for the first four decades after independence was based on the socialist school of thought that India embraced, partly to alienate itself from the colonial past and more so owing to the obvious achievements of the socialist movement in the post world-war two period. Thus, through a Resolution dated April 6, 1948 the government set out the policy to be pursued in the Industrial field, wherein to secure continuous increase in production and equitable distribution, the country opted for a centrally planned development strategy, with the state playing a major role. For this purpose, the National Planning Commission was established for planning, co-ordination, integration of national economic activity and to formulate programmes of development and to secure their execution. On October 30, 1956, at the beginning of the Second Five Year Plan, the Government adopted a New Industrial Policy Resolution, which reiterated the above objective and classified industries into three categories as follows: Schedule A were those industries whose future development was the exclusive responsibility of the state. Schedule B consisted of industries which would be progressively state-owned, wherein the state would take initiative in establishing new undertakings and private enterprise would be expected to supplement the effort of the state. Schedule C included all remaining industries whose further development was left to the initiative and enterprise of the private sector. This led to the expansion of the public sector in India, whose share in GDP increased from 9.91% in 1960-61 to 27.12% in 1988-89. However, the cause of concern was that a large number of public sector enterprises particularly the Non-departmental non-financial enterprises were making losses and had to be subsidized. Industrial undertakings in the private sector were subject to control and regulation like the Industries Development and Regulation (IDR) Act (1951) and were expected to align their business strategy and goals with the broad economic and social objectives of the State. The IDR vested with the government necessary powers to regulate and control existing and future undertakings in a number of specified industries. A license was necessary for establishing a new undertaking, taking up the manufacture of a new article in an existing unit, effecting substantial expansion, carrying on the business of an existing undertaking and changing the location of an existing unit. A Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the IDR Act, 1951. The LOI was converted into Industrial License on completion of specified formalities. Further, to prevent monopolies and concentration of economic power in the hands of private sector, in 1969, the Monopoly and Restrictive Trade Practices Act (MRTP) was enacted. All these regulations and controls led to increase in bureaucracy, inhibiting enterprise and industry. Also, given the state of the economy with limited resources, scarce capital and vast population base, the development ideology revolved around the notion of conservation and optimum utilization of capital so as to maximize employment (and not necessarily output). Deployment of new capital was strictly controlled and regulated so as to meet social needs and maximize employment. Further, once the capital was committed to any activity and a certain employment was created, it was protected at any cost even if it was non-viable in the face of market forces. Labour intensive technology and employment generation were also the rationale behind the initial advocacy of small-scale industry. However, later, when it was realized that modern small scale industry was not necessarily labour intensive, the argument turned to encouraging the entry of new entrepreneurs in industry. A range of products were reserved for exclusive production in the small-scale sector, eliminating potential competition from medium and large firms. There were no pressures on the smaller firms to improve technology, update production techniques or reduce cost modernize or specialize. There was an inherent disincentive to grow beyond a certain size, if they had to continue production of a reserved product. Thus economies of scale could not be leveraged and market distortions were widespread. Until 1991, the guiding principle of Indias industrial policy was self reliance, which focused on indigenous production and reduced dependence on foreign capital and foreign technology irrespective of the cost and/or quality. This did lead to the creation of a large industrial base, diversification of products, ownership and location. But in the absence of domestic competition, export rivalry and competition of imports, industry grew with a lack of cost and quality consciousness, leading to slow growth, increasing deficits and debt and finally the crisis in 1991 which paved the way for economic reforms in India. Some of the components of the reform package include: Reforms in Industrial Policies in terms of delicensing of most industries and deregulation of industries earlier monopolized by the public sector Liberalisation of foreign trade through steady reduction in tariffs and freeing up of the foreign investment limits in most industries combined with measures to attract FDI into the country Macroeconomic stabilization through substantial reduction in fiscal deficits and governments draft on the private sectors savings Other reforms including those in taxation, financial sector, insurance sector, public sector, etc. During the last decade and half, these reforms have reoriented India from a slow-paced, centrally directed and highly controlled economy to a strong, vibrant, fast-growing and market-friendly one. There now exists an internationally competitive private sector with varied scope for collaborations and joint ventures and a facilitating regulatory framework that is evolving to match the international standards. This Chapter seeks to give an overview of the broad framework of regulations governing business in India particularly in the context of: Industrial Policy Foreign Investment Policy Anti Trust Regulations Labour Laws Protection of Intellectual Property Rights Other Economic Laws Procedures 3.2 INDUSTRIAL POLICY The Industrial Policy Resolution 1956, substantially augmented through the Statement of Industrial Policy 1991 and subsequent announcements which liberalized the economy provides the basic framework for the overall industrial policy of the Government of India. 3.2.1 Industrial Licensing The requirement of obtaining an industrial license for manufacturing has been abolished for all projects except for a short list of industries connected with security and strategic concerns (reserved for public sector), social reasons, hazardous chemicals and overriding environmental concerns. The list of items requiring compulsory licensing is reviewed on an ongoing basis. The stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. The following industries require compulsory license:- Alcoholics drinks Cigarettes and tobacco products Electronic, aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocynates and di-isocynates of hydro carbon and derivatives, etc. Non-small-scale industrial units or units in which foreign equity is more than 24% require license to manufacture items reserved from small scale sector. All other industries are exempt from licensing and no industrial approval is required. Entrepreneurs are only required to file an Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), providing information on new projects and substantial expansions. There are however, certain locational restrictions in metropolitan areas. No industrial approval is required from the Government for locations outside 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 1991. Zoning and Land Use Regulations as well as Environmental Legislations have to be followed. Appropriate incentives and investments in enabling infrastructure are provided to promote dispersal of industry particularly to the rural and backward areas and to reduce congestion in cities. Recently, the Government approved a package of fiscal incentives and other concessions for the North East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, effective from 1.4.2007. Also, under the broad framework of the national industrial policy, different Indian States announce their respective Industrial Policies periodically, which highlight the areas in which the State would focus on and provide incentives to attract investment, the various sector location specific schemes offered to private investors, the plans for development of enabling infrastructure, opportunities for public-private-partnership, etc. 3.2.2 Policies for Privatisation The post 1991 liberalisation process brought with it deregulation of trade and industry, dismantling of bureaucratic controls, technological development and financial sector reforms. Privatising some of the activities which heretofore were the exclusive domain of public sector also became part of this initiative to boost enterprise and professional management of resources to enhance economic growth and competitiveness. Revolutionary policy measures were undertaken to encourage private participation in sectors like telecom, information broadcasting, power, ports, airports, banking, etc. Over the years, the government has reduced the number of industries reserved for the public sector to the two which are deemed significant from security and strategic perspective, viz., Atomic energy and Railways. However, in the last few years the railways announced opening up of its containerized operations to other private and public sector companies, thereby ending the monopoly enjoyed by the Container Corporation of India (CONCOR). Interested companies could avail of the route-specific or all-India permission by paying a registration fee which is valid for an operation period of 20 years (further extendable by 10 years). There is freedom to decide the tariffs to be charged to the customers for various services and also the exit norms involve transfer of the operational writes to another eligible operator with the railway approval. 3.2.3 Policies for Small Scale Sector The provisions in the Industrial Policy Statement of 1991 and the subsequent policies are aimed at supporting the Small Scale Industries (SSI) sector though various measures and packages focusing not only on policy of reservation but also on price and purchase preference policy for marketing SSI products, credit and fiscal support to SSIs, support for cluster based development, technology upgradation, etc. The IDR Act 1951 provided for the reservation of items for exclusive manufacture in SSI sector primarily with the objectives of increasing production of consumer goods in the small scale sector and widening of employment opportunities. In 1967, 47 items were reserved for exclusive manufacture in the small scale sector. This number was increased to 836 items in 1989. However, since 1997, a large number of items were dereserved from the list in the phased manner. As of March 2007, only 114 items are reserved for exclusive manufacture in the small scale sector. In addition to the policy of reservation, the Government has initiated various measures offering support for Cluster based Development, Technologies and Quality Upgradation, Marketing, Entrepreneurial and Managerial Development and Schemes for Empowerment of Women Owned Enterprises. Further, with a view to facilitate the development of micro, small and medium enterprises (MSME), the Micro, Small and Medium Enterprises Act 2006, was implemented. The Act provides the new classification of each category of enterprises. As per the Act, MSME are defined as follows: in the case of the enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the IDR Act 1951 a micro enterprise is the one where the investment in plant and machinery does not exceed twenty five lakh rupees. a small enterprise is one where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or a medium enterprise is one in which the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; in the case of enterprises engaged in providing or rendering of services a micro enterprise is one where the investment in equipment does not exceed ten lakh rupees; a small enterprise is one in which the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or a medium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees In February 2007, the Government announced a package for promotion of the SSI sector as follows: Credit Support: The package aims at increasing the number of beneficiaries of the credit provided by the Small Industries Development Bank of India (SIDBI) by 50 lakhs, over five years beginning from 2006-07. For this purpose, the Government has provided grant to SIDBI to augment its Portfolio Risk Fund. Besides, in an attempt to increase demand-based small loans to micro enterprise, the Government announced a provision of grant to SIDBI to create a Risk Capital Fund (as a pilot scheme in 2006-07). The eligible loan limit under the Credit Guarantee Fund Scheme has been raised to Rs. 50 lakh. The credit guarantee cover has also been raised from 75% to 80% for micro enterprises for loans upto Rs. 5 lakhs. Fiscal support: The Government has increased the General Excise Exemption (GEE) limit from Rs. 100 lakh to Rs. 150 lakhs since April 2007. It further proposes to examine the eligibility of extending the time limit for payment of excise duty by micro and small enterprises; and extending the GEE benefits to small enterprises on their graduation to medium enterprises for a limited period. 3.3 FOREIGN INVESTMENT POLICY In recognition of the importance of of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy, the Government of India revamped its foreign investment policy as part of the reform process. 3.3.1 Foreign Direct Investment Foreign Direct Investment (FDI) regime in India was increasingly liberalized during 1990s (more particularly post 1996) and today India has the most liberal and transparent policies on FDI among the emerging economies, with restrictions on foreign investments being removed and procedures simplified. Some of the prominent features of the FDI policy in India are elucidated below: The approval mechanism for FDI has a two tier system. Under the automatic approval route, companies can issue shares and receive inward remittances for investment in areas identified and upto the limits of foreign equity prescribed, with a reporting requirement, within a period of 30 days. In these sectors, investment could be made without prior approval of the central government. Although, in case of the automatic route, it is no longer necessary to obtain the in principle permission from Reserve bank of India (RBI) before receiving overseas investment or for issuing shares to foreign investors, the company, would, however, have to make a report to the RBI within 30 days after issue of shares to the foreign investors. Proposals for investment in public sector units and also for Special Economic Zones (SEZs) / Export Oriented Units (EOUs)/ Export Processing Zones (EPZs) qualify for automatic approval subject to satisfaction of certain prescribed sector specific parameters. FDI upto 100% is permitted under the automatic route for setting up Industrial Parks. Proposals for FDI/NRI investment in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) Units are eligible for approval under the automatic route, except for those requiring prior approval of the Central Government (as discussed below). FDI in sectors that are not covered under the automatic route requires prior approval of the Central Government. Activities/sectors require prior approval of the Government for FDI in the following circumstances:- Activities/items that require an industrial license Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field (except in IT and mining sector) All proposals falling outside notified sectoral policy/CAPS Proposals in which more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale Sector The approval is granted by Foreign Investment Promotion Board (FIPB), which is a specially empowered board set up for the purpose, chaired by the Secretary, Union Ministry of Finance. Proposals for FDI could be sent to the FIPB Unit, Department of Economic Affairs, Ministry of Finance or through any of Indias diplomatic missions abroad. FIPB has the flexibility to examine all proposals in totality, free from predetermined parameters. Recommendations of FIPB regarding all proposals falling in the non-automatic route and involving an investment of Rs.6 billion or less are considered and approved by the Finance Minister. Projects with investment greater than this value are submitted by the FIPB to the Cabinet Committee on Economic Affairs for approval. Necessary regulatory approvals from the state governments and local authorities for construction of building, water, environmental clearance, etc. need to be acquired after the grant of approval for FDI by FIPB or for the sectors falling under automatic route. Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures. Decisions on all foreign investments are usually taken within 30 days of submitting the application. In cases where original investment is made in convertible foreign exchange, free repatriation of capital investment and profits thereon is permitted. Sectors prohibited for FDI include: Retail trading (except Single Brand Product retailing) Atomic Energy Lottery Business Gambling and Betting 3.3.1.1 Investment in SEZs In order to enhance competitiveness of Indian exports and attract investment in these sectors, Indias Foreign Trade Policy promotes the setting up of SEZs and thus provides for a hassle-free environment with world-class institutional and physical infrastructure and supporting logistics. Some of the existing EPZs/FTZs have also been converted into SEZs. All the State Governments have been advised to give priority to waste and barren land for acquisition purposes. According to the total Waste Land area surveyed by the Ministry of Forest, 5,52,692.26 hectares was available for such purpose. FDI upto 100% is permitted under the automatic route for setting up of SEZ. Proposals not covered under automatic route require approval from FIPB. The policy provides for setting up of SEZ in the public, private or joint sectors or by state governments. These could be product specific or multi-product SEZs. Designated duty-free enclaves are treated as foreign territory for trade operations and duties and tariffs, and duty-free goods need to be utilised within the approved period. The permitted activities cover an array of manufacturing and services like production, processing, assembling, reconditioning, re-engineering, packaging, trading, etc. Proposals for setting up units in SEZ, other than those requiring industrial license are approved by the Development Commissioner (DC). The approval for those requiring industrial license is granted by the DC after receiving clearance from the Board of Approval. The Letter of Permission (LOP)/Letter of Intent (LOI) issued by the DC is construed as a license for all purposes, including procurement of raw material and consumables either directly or through a canalising agency. The LOP/LOI needs to specify the items of manufacture/service activity, annual capacity, projected annual export for the first year in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required. According to the policy, SEZ units have to be positive net foreign exchange earners and the performance of these units would be monitored by a unit approval committee consisting of the DC and the Customs Authority. 3.3.2 Entry Options for Foreign Investors A foreign company has the option to set up business operations in India as an Incorporated Entity or as an Unincorporated Entity. An Incorporated Entity would be a company registered under Companies Act, 1956, through joint ventures or wholly owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to any equity caps prescribed in respect of area of activities under the FDI policy. Funding could be via equity, debt (both foreign and local) and internal accruals. For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Companies in India can be incorporated as a private company or a public company. In comparison with branch and liaison offices (discussed subsequently), a subsidiary company provides maximum flexibility for conducting business in India. However, the exit procedure norms of such companies are relatively more cumbersome. An Unincorporated Entity could be Liaison Office/Representative Office or Project Office or Branch Office. Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000. They are also governed by the Companies Act 1956, which contains special provisions for regulating such entities. 3.3.2.1 Liaison Office/Representative Office The role of a liaison office is primarily to: Collect information about the market Disseminate information about the company and its products to prospective Indian customers Promote exports/imports from/to India Facilitate technical collaboration between parent company and companies in India A liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Approval for establishing a liaison office in India is granted by the RBI. 3.3.2.2 Project Office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI. Since a Project Office is an extension of the foreign incorporation in India, it is taxed at the rate applicable to foreign corporations. 3.3.2.3 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes : Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying/ selling agents in India Rendering services in Information Technology and development of software in India Rendering technical support to the products supplied by the parent/ group companies Foreign airline/shipping company Branch Offices established with the approval of RBI, are allowed to remit outside India profit of the branch net of applicable taxes (which are at rates applicable to foreign companies) however, subject to RBI guidelines. Permission for setting up branch offices is granted by the RBI. Branch Offices could also be on stand alone basis in SEZ. Such Branch Offices would be isolated and restricted to the SEZ alone and no business activity/transaction would be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities, subject to the conditions that: they function in sectors in which 100% FDI is permitted they comply with part XI of the Companys Act (Section 592 to 602) function on a stand alone basis in the event of winding up of business and for remittance of winding-up proceeds, the branch should approach an authorized dealer in foreign exchange in the with documents required as per FEMA. A Branch Office provides the advantage of ease in operations and an uncomplicated closure. However, since the operations are strictly regulated by exchange control guidelines, a Branch may not provide a foreign corporation with most optimum structure for its expansion/diversification plans. Box 3.1 Investment in a firm or a Proprietary Concern by NRIs A Non-Resident Indian or a Person of Indian Origin (PIO) resident outside India may invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided: i) Amount is invested by inward remittance or out of NRE/FCNR/NRO account maintained with Authorised Dealers of RBI (AD) ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income there from. iii) Amount invested shall not be eligible for repatriation outside India. NRIs/PIO may invest in sole proprietorship concerns/ partnership firms with repatriation benefits with the approval of Department of Economic Affairs, Government of India /RBI. Box 3.2 Investment in a firm or a Proprietary Concern by Other than NRIs No person resident outside India other than NRIs/PIO shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as may be considered necessary. 3.3.3 Financing Options for Corporates Companies registered in India can raise finances through Share Capital or Debentures and Borrowings. 3.3.3.1 Share Capital The Companies Act, 1956 allows for two kinds of share capital, viz., Preference share capital (preferred stock) and Equity share capital (with/without voting rights). Apart from this, private companies which are not subsidiaries of public company have the option of raising funds through Venture Capital. The issue of shares to the public is governed by the guidelines issued by the Securities Exchange Board of India (SEBI) the body that regulates and oversees the functioning of Indian Stock markets and the RBI. A company issuing shares or debentures has to comply with SEBI disclosure requirements with regards to its prospectus. The prospectus has to be approved by the stock exchange and scrutinized by SEBI and then filed with the Registrar of Companies. Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors. The companies are required to notify the concerned Regional office of the RBI of receipt of inward remittances within 30 days of such receipt and within 30 days of issue of shares to the foreign investors or NRIs. Equity participation by international financial institutions such as ADB, IFC, CDC, DEG, etc., in domestic companies is permitted through automatic route, subject to SEBI/RBI regulations and sector specific cap on FDI. In all other cases a company may issue shares as per the RBI regulations. Other relevant guidelines of SEBI and RBI, including the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, wherever applicable, would need to be followed. The Companies Act does not specify the nominal value of shares. According to RBI/SEBI Guidelines, in case of listed companies, the issue price shall be either at the ave Regulatory Frameworks of Indias Industrial Policies Regulatory Frameworks of Indias Industrial Policies CHAPTER 3 THE REGULATORY FRAMEWORK 3.1 INTRODUCTION: THE PARADIGM SHIFT The industrial policy pursued in India for the first four decades after independence was based on the socialist school of thought that India embraced, partly to alienate itself from the colonial past and more so owing to the obvious achievements of the socialist movement in the post world-war two period. Thus, through a Resolution dated April 6, 1948 the government set out the policy to be pursued in the Industrial field, wherein to secure continuous increase in production and equitable distribution, the country opted for a centrally planned development strategy, with the state playing a major role. For this purpose, the National Planning Commission was established for planning, co-ordination, integration of national economic activity and to formulate programmes of development and to secure their execution. On October 30, 1956, at the beginning of the Second Five Year Plan, the Government adopted a New Industrial Policy Resolution, which reiterated the above objective and classified industries into three categories as follows: Schedule A were those industries whose future development was the exclusive responsibility of the state. Schedule B consisted of industries which would be progressively state-owned, wherein the state would take initiative in establishing new undertakings and private enterprise would be expected to supplement the effort of the state. Schedule C included all remaining industries whose further development was left to the initiative and enterprise of the private sector. This led to the expansion of the public sector in India, whose share in GDP increased from 9.91% in 1960-61 to 27.12% in 1988-89. However, the cause of concern was that a large number of public sector enterprises particularly the Non-departmental non-financial enterprises were making losses and had to be subsidized. Industrial undertakings in the private sector were subject to control and regulation like the Industries Development and Regulation (IDR) Act (1951) and were expected to align their business strategy and goals with the broad economic and social objectives of the State. The IDR vested with the government necessary powers to regulate and control existing and future undertakings in a number of specified industries. A license was necessary for establishing a new undertaking, taking up the manufacture of a new article in an existing unit, effecting substantial expansion, carrying on the business of an existing undertaking and changing the location of an existing unit. A Letter of Intent (LOI) was issued for sectors/activities under compulsory license under the IDR Act, 1951. The LOI was converted into Industrial License on completion of specified formalities. Further, to prevent monopolies and concentration of economic power in the hands of private sector, in 1969, the Monopoly and Restrictive Trade Practices Act (MRTP) was enacted. All these regulations and controls led to increase in bureaucracy, inhibiting enterprise and industry. Also, given the state of the economy with limited resources, scarce capital and vast population base, the development ideology revolved around the notion of conservation and optimum utilization of capital so as to maximize employment (and not necessarily output). Deployment of new capital was strictly controlled and regulated so as to meet social needs and maximize employment. Further, once the capital was committed to any activity and a certain employment was created, it was protected at any cost even if it was non-viable in the face of market forces. Labour intensive technology and employment generation were also the rationale behind the initial advocacy of small-scale industry. However, later, when it was realized that modern small scale industry was not necessarily labour intensive, the argument turned to encouraging the entry of new entrepreneurs in industry. A range of products were reserved for exclusive production in the small-scale sector, eliminating potential competition from medium and large firms. There were no pressures on the smaller firms to improve technology, update production techniques or reduce cost modernize or specialize. There was an inherent disincentive to grow beyond a certain size, if they had to continue production of a reserved product. Thus economies of scale could not be leveraged and market distortions were widespread. Until 1991, the guiding principle of Indias industrial policy was self reliance, which focused on indigenous production and reduced dependence on foreign capital and foreign technology irrespective of the cost and/or quality. This did lead to the creation of a large industrial base, diversification of products, ownership and location. But in the absence of domestic competition, export rivalry and competition of imports, industry grew with a lack of cost and quality consciousness, leading to slow growth, increasing deficits and debt and finally the crisis in 1991 which paved the way for economic reforms in India. Some of the components of the reform package include: Reforms in Industrial Policies in terms of delicensing of most industries and deregulation of industries earlier monopolized by the public sector Liberalisation of foreign trade through steady reduction in tariffs and freeing up of the foreign investment limits in most industries combined with measures to attract FDI into the country Macroeconomic stabilization through substantial reduction in fiscal deficits and governments draft on the private sectors savings Other reforms including those in taxation, financial sector, insurance sector, public sector, etc. During the last decade and half, these reforms have reoriented India from a slow-paced, centrally directed and highly controlled economy to a strong, vibrant, fast-growing and market-friendly one. There now exists an internationally competitive private sector with varied scope for collaborations and joint ventures and a facilitating regulatory framework that is evolving to match the international standards. This Chapter seeks to give an overview of the broad framework of regulations governing business in India particularly in the context of: Industrial Policy Foreign Investment Policy Anti Trust Regulations Labour Laws Protection of Intellectual Property Rights Other Economic Laws Procedures 3.2 INDUSTRIAL POLICY The Industrial Policy Resolution 1956, substantially augmented through the Statement of Industrial Policy 1991 and subsequent announcements which liberalized the economy provides the basic framework for the overall industrial policy of the Government of India. 3.2.1 Industrial Licensing The requirement of obtaining an industrial license for manufacturing has been abolished for all projects except for a short list of industries connected with security and strategic concerns (reserved for public sector), social reasons, hazardous chemicals and overriding environmental concerns. The list of items requiring compulsory licensing is reviewed on an ongoing basis. The stage of LOI has been dispensed with for all sectors/activities except for items reserved for SSI sector and an Industrial License is now issued without going through the stage of LOI. The following industries require compulsory license:- Alcoholics drinks Cigarettes and tobacco products Electronic, aerospace and defense equipment Explosives Hazardous chemicals such as hydrocyanic acid, phosgene, isocynates and di-isocynates of hydro carbon and derivatives, etc. Non-small-scale industrial units or units in which foreign equity is more than 24% require license to manufacture items reserved from small scale sector. All other industries are exempt from licensing and no industrial approval is required. Entrepreneurs are only required to file an Industrial Entrepreneurs Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA), providing information on new projects and substantial expansions. There are however, certain locational restrictions in metropolitan areas. No industrial approval is required from the Government for locations outside 25 kms of the periphery of cities having a population of more than one million except for those industries where industrial licensing is compulsory. Non-polluting industries such as electronics, computer software and printing can be located within 25 kms of the periphery of cities with more than one million population. Permission to other industries is granted in such locations only if they are located in an industrial area so designated prior to 1991. Zoning and Land Use Regulations as well as Environmental Legislations have to be followed. Appropriate incentives and investments in enabling infrastructure are provided to promote dispersal of industry particularly to the rural and backward areas and to reduce congestion in cities. Recently, the Government approved a package of fiscal incentives and other concessions for the North East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007, effective from 1.4.2007. Also, under the broad framework of the national industrial policy, different Indian States announce their respective Industrial Policies periodically, which highlight the areas in which the State would focus on and provide incentives to attract investment, the various sector location specific schemes offered to private investors, the plans for development of enabling infrastructure, opportunities for public-private-partnership, etc. 3.2.2 Policies for Privatisation The post 1991 liberalisation process brought with it deregulation of trade and industry, dismantling of bureaucratic controls, technological development and financial sector reforms. Privatising some of the activities which heretofore were the exclusive domain of public sector also became part of this initiative to boost enterprise and professional management of resources to enhance economic growth and competitiveness. Revolutionary policy measures were undertaken to encourage private participation in sectors like telecom, information broadcasting, power, ports, airports, banking, etc. Over the years, the government has reduced the number of industries reserved for the public sector to the two which are deemed significant from security and strategic perspective, viz., Atomic energy and Railways. However, in the last few years the railways announced opening up of its containerized operations to other private and public sector companies, thereby ending the monopoly enjoyed by the Container Corporation of India (CONCOR). Interested companies could avail of the route-specific or all-India permission by paying a registration fee which is valid for an operation period of 20 years (further extendable by 10 years). There is freedom to decide the tariffs to be charged to the customers for various services and also the exit norms involve transfer of the operational writes to another eligible operator with the railway approval. 3.2.3 Policies for Small Scale Sector The provisions in the Industrial Policy Statement of 1991 and the subsequent policies are aimed at supporting the Small Scale Industries (SSI) sector though various measures and packages focusing not only on policy of reservation but also on price and purchase preference policy for marketing SSI products, credit and fiscal support to SSIs, support for cluster based development, technology upgradation, etc. The IDR Act 1951 provided for the reservation of items for exclusive manufacture in SSI sector primarily with the objectives of increasing production of consumer goods in the small scale sector and widening of employment opportunities. In 1967, 47 items were reserved for exclusive manufacture in the small scale sector. This number was increased to 836 items in 1989. However, since 1997, a large number of items were dereserved from the list in the phased manner. As of March 2007, only 114 items are reserved for exclusive manufacture in the small scale sector. In addition to the policy of reservation, the Government has initiated various measures offering support for Cluster based Development, Technologies and Quality Upgradation, Marketing, Entrepreneurial and Managerial Development and Schemes for Empowerment of Women Owned Enterprises. Further, with a view to facilitate the development of micro, small and medium enterprises (MSME), the Micro, Small and Medium Enterprises Act 2006, was implemented. The Act provides the new classification of each category of enterprises. As per the Act, MSME are defined as follows: in the case of the enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the IDR Act 1951 a micro enterprise is the one where the investment in plant and machinery does not exceed twenty five lakh rupees. a small enterprise is one where the investment in plant and machinery is more than twenty five lakh rupees but does not exceed five crore rupees; or a medium enterprise is one in which the investment in plant and machinery is more than five crore rupees but does not exceed ten crore rupees; in the case of enterprises engaged in providing or rendering of services a micro enterprise is one where the investment in equipment does not exceed ten lakh rupees; a small enterprise is one in which the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees; or a medium enterprise is where the investment in equipment is more than two crore rupees but does not exceed five crore rupees In February 2007, the Government announced a package for promotion of the SSI sector as follows: Credit Support: The package aims at increasing the number of beneficiaries of the credit provided by the Small Industries Development Bank of India (SIDBI) by 50 lakhs, over five years beginning from 2006-07. For this purpose, the Government has provided grant to SIDBI to augment its Portfolio Risk Fund. Besides, in an attempt to increase demand-based small loans to micro enterprise, the Government announced a provision of grant to SIDBI to create a Risk Capital Fund (as a pilot scheme in 2006-07). The eligible loan limit under the Credit Guarantee Fund Scheme has been raised to Rs. 50 lakh. The credit guarantee cover has also been raised from 75% to 80% for micro enterprises for loans upto Rs. 5 lakhs. Fiscal support: The Government has increased the General Excise Exemption (GEE) limit from Rs. 100 lakh to Rs. 150 lakhs since April 2007. It further proposes to examine the eligibility of extending the time limit for payment of excise duty by micro and small enterprises; and extending the GEE benefits to small enterprises on their graduation to medium enterprises for a limited period. 3.3 FOREIGN INVESTMENT POLICY In recognition of the importance of of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy, the Government of India revamped its foreign investment policy as part of the reform process. 3.3.1 Foreign Direct Investment Foreign Direct Investment (FDI) regime in India was increasingly liberalized during 1990s (more particularly post 1996) and today India has the most liberal and transparent policies on FDI among the emerging economies, with restrictions on foreign investments being removed and procedures simplified. Some of the prominent features of the FDI policy in India are elucidated below: The approval mechanism for FDI has a two tier system. Under the automatic approval route, companies can issue shares and receive inward remittances for investment in areas identified and upto the limits of foreign equity prescribed, with a reporting requirement, within a period of 30 days. In these sectors, investment could be made without prior approval of the central government. Although, in case of the automatic route, it is no longer necessary to obtain the in principle permission from Reserve bank of India (RBI) before receiving overseas investment or for issuing shares to foreign investors, the company, would, however, have to make a report to the RBI within 30 days after issue of shares to the foreign investors. Proposals for investment in public sector units and also for Special Economic Zones (SEZs) / Export Oriented Units (EOUs)/ Export Processing Zones (EPZs) qualify for automatic approval subject to satisfaction of certain prescribed sector specific parameters. FDI upto 100% is permitted under the automatic route for setting up Industrial Parks. Proposals for FDI/NRI investment in Electronic Hardware Technology Park (EHTP) and Software Technology Park (STP) Units are eligible for approval under the automatic route, except for those requiring prior approval of the Central Government (as discussed below). FDI in sectors that are not covered under the automatic route requires prior approval of the Central Government. Activities/sectors require prior approval of the Government for FDI in the following circumstances:- Activities/items that require an industrial license Proposals in which the foreign collaborator has an existing financial/technical collaboration in India in the same field (except in IT and mining sector) All proposals falling outside notified sectoral policy/CAPS Proposals in which more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale Sector The approval is granted by Foreign Investment Promotion Board (FIPB), which is a specially empowered board set up for the purpose, chaired by the Secretary, Union Ministry of Finance. Proposals for FDI could be sent to the FIPB Unit, Department of Economic Affairs, Ministry of Finance or through any of Indias diplomatic missions abroad. FIPB has the flexibility to examine all proposals in totality, free from predetermined parameters. Recommendations of FIPB regarding all proposals falling in the non-automatic route and involving an investment of Rs.6 billion or less are considered and approved by the Finance Minister. Projects with investment greater than this value are submitted by the FIPB to the Cabinet Committee on Economic Affairs for approval. Necessary regulatory approvals from the state governments and local authorities for construction of building, water, environmental clearance, etc. need to be acquired after the grant of approval for FDI by FIPB or for the sectors falling under automatic route. Single window clearance facilities and investor escort services are available in various states to simplify the approval process for new ventures. Decisions on all foreign investments are usually taken within 30 days of submitting the application. In cases where original investment is made in convertible foreign exchange, free repatriation of capital investment and profits thereon is permitted. Sectors prohibited for FDI include: Retail trading (except Single Brand Product retailing) Atomic Energy Lottery Business Gambling and Betting 3.3.1.1 Investment in SEZs In order to enhance competitiveness of Indian exports and attract investment in these sectors, Indias Foreign Trade Policy promotes the setting up of SEZs and thus provides for a hassle-free environment with world-class institutional and physical infrastructure and supporting logistics. Some of the existing EPZs/FTZs have also been converted into SEZs. All the State Governments have been advised to give priority to waste and barren land for acquisition purposes. According to the total Waste Land area surveyed by the Ministry of Forest, 5,52,692.26 hectares was available for such purpose. FDI upto 100% is permitted under the automatic route for setting up of SEZ. Proposals not covered under automatic route require approval from FIPB. The policy provides for setting up of SEZ in the public, private or joint sectors or by state governments. These could be product specific or multi-product SEZs. Designated duty-free enclaves are treated as foreign territory for trade operations and duties and tariffs, and duty-free goods need to be utilised within the approved period. The permitted activities cover an array of manufacturing and services like production, processing, assembling, reconditioning, re-engineering, packaging, trading, etc. Proposals for setting up units in SEZ, other than those requiring industrial license are approved by the Development Commissioner (DC). The approval for those requiring industrial license is granted by the DC after receiving clearance from the Board of Approval. The Letter of Permission (LOP)/Letter of Intent (LOI) issued by the DC is construed as a license for all purposes, including procurement of raw material and consumables either directly or through a canalising agency. The LOP/LOI needs to specify the items of manufacture/service activity, annual capacity, projected annual export for the first year in dollar terms, Net Foreign Exchange Earnings (NFE), limitations, if any, regarding sale of finished goods, by products and rejects in the DTA and such other matter as may be necessary and also impose such conditions as may be required. According to the policy, SEZ units have to be positive net foreign exchange earners and the performance of these units would be monitored by a unit approval committee consisting of the DC and the Customs Authority. 3.3.2 Entry Options for Foreign Investors A foreign company has the option to set up business operations in India as an Incorporated Entity or as an Unincorporated Entity. An Incorporated Entity would be a company registered under Companies Act, 1956, through joint ventures or wholly owned subsidiaries. Foreign equity in such Indian companies can be up to 100% depending on the requirements of the investor, subject to any equity caps prescribed in respect of area of activities under the FDI policy. Funding could be via equity, debt (both foreign and local) and internal accruals. For registration and incorporation, an application has to be filed with the Registrar of Companies (ROC). Once a company has been duly registered and incorporated as an Indian company, it is subject to Indian laws and regulations as applicable to other domestic Indian companies. Companies in India can be incorporated as a private company or a public company. In comparison with branch and liaison offices (discussed subsequently), a subsidiary company provides maximum flexibility for conducting business in India. However, the exit procedure norms of such companies are relatively more cumbersome. An Unincorporated Entity could be Liaison Office/Representative Office or Project Office or Branch Office. Such offices can undertake activities permitted under the Foreign Exchange Management (Establishment in India of Branch Office of other place of business) Regulations, 2000. They are also governed by the Companies Act 1956, which contains special provisions for regulating such entities. 3.3.2.1 Liaison Office/Representative Office The role of a liaison office is primarily to: Collect information about the market Disseminate information about the company and its products to prospective Indian customers Promote exports/imports from/to India Facilitate technical collaboration between parent company and companies in India A liaison office cannot undertake any commercial activity directly or indirectly and cannot, therefore, earn any income in India. Approval for establishing a liaison office in India is granted by the RBI. 3.3.2.2 Project Office Foreign Companies planning to execute specific projects in India can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI. Since a Project Office is an extension of the foreign incorporation in India, it is taxed at the rate applicable to foreign corporations. 3.3.2.3 Branch Office Foreign companies engaged in manufacturing and trading activities abroad are allowed to set up Branch Offices in India for the following purposes : Export/Import of goods Rendering professional or consultancy services Carrying out research work, in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying/ selling agents in India Rendering services in Information Technology and development of software in India Rendering technical support to the products supplied by the parent/ group companies Foreign airline/shipping company Branch Offices established with the approval of RBI, are allowed to remit outside India profit of the branch net of applicable taxes (which are at rates applicable to foreign companies) however, subject to RBI guidelines. Permission for setting up branch offices is granted by the RBI. Branch Offices could also be on stand alone basis in SEZ. Such Branch Offices would be isolated and restricted to the SEZ alone and no business activity/transaction would be allowed outside the SEZs in India, which include branches/subsidiaries of its parent office in India. No approval shall be necessary from RBI for a company to establish a branch/unit in SEZs to undertake manufacturing and service activities, subject to the conditions that: they function in sectors in which 100% FDI is permitted they comply with part XI of the Companys Act (Section 592 to 602) function on a stand alone basis in the event of winding up of business and for remittance of winding-up proceeds, the branch should approach an authorized dealer in foreign exchange in the with documents required as per FEMA. A Branch Office provides the advantage of ease in operations and an uncomplicated closure. However, since the operations are strictly regulated by exchange control guidelines, a Branch may not provide a foreign corporation with most optimum structure for its expansion/diversification plans. Box 3.1 Investment in a firm or a Proprietary Concern by NRIs A Non-Resident Indian or a Person of Indian Origin (PIO) resident outside India may invest by way of contribution to the capital of a firm or a proprietary concern in India on non-repatriation basis provided: i) Amount is invested by inward remittance or out of NRE/FCNR/NRO account maintained with Authorised Dealers of RBI (AD) ii) The firm or proprietary concern is not engaged in any agricultural/plantation or real estate business i.e. dealing in land and immovable property with a view to earning profit or earning income there from. iii) Amount invested shall not be eligible for repatriation outside India. NRIs/PIO may invest in sole proprietorship concerns/ partnership firms with repatriation benefits with the approval of Department of Economic Affairs, Government of India /RBI. Box 3.2 Investment in a firm or a Proprietary Concern by Other than NRIs No person resident outside India other than NRIs/PIO shall make any investment by way of contribution to the capital of a firm or a proprietorship concern or any association of persons in India. The RBI may, on an application made to it, permit a person resident outside India to make such investment subject to such terms and conditions as may be considered necessary. 3.3.3 Financing Options for Corporates Companies registered in India can raise finances through Share Capital or Debentures and Borrowings. 3.3.3.1 Share Capital The Companies Act, 1956 allows for two kinds of share capital, viz., Preference share capital (preferred stock) and Equity share capital (with/without voting rights). Apart from this, private companies which are not subsidiaries of public company have the option of raising funds through Venture Capital. The issue of shares to the public is governed by the guidelines issued by the Securities Exchange Board of India (SEBI) the body that regulates and oversees the functioning of Indian Stock markets and the RBI. A company issuing shares or debentures has to comply with SEBI disclosure requirements with regards to its prospectus. The prospectus has to be approved by the stock exchange and scrutinized by SEBI and then filed with the Registrar of Companies. Indian companies having foreign investment approval through FIPB route do not require any further clearance from RBI for receiving inward remittance and issue of shares to the foreign investors. The companies are required to notify the concerned Regional office of the RBI of receipt of inward remittances within 30 days of such receipt and within 30 days of issue of shares to the foreign investors or NRIs. Equity participation by international financial institutions such as ADB, IFC, CDC, DEG, etc., in domestic companies is permitted through automatic route, subject to SEBI/RBI regulations and sector specific cap on FDI. In all other cases a company may issue shares as per the RBI regulations. Other relevant guidelines of SEBI and RBI, including the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, wherever applicable, would need to be followed. The Companies Act does not specify the nominal value of shares. According to RBI/SEBI Guidelines, in case of listed companies, the issue price shall be either at the ave