Procedures for foreign investments in India on certain sectors

Here's my write up about this subject published in www.cogzidel.in

Investments in Small Scale Industrial (SSI) units

SSI is an undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million.

A company which is a SSI unit and which is not engaged in any activity under the prohibited category may issue equity / preference shares or fully convertible debentures to a foreign investor, to the extent of .....click here to read through.....

Even God has a Sense of Humour

God was in the process of creating the Universe. And he was explaining to his subordinates "Look everything should be in balance. For example, after every 10 deer there should be a lion"

Look here my fellow angels, here is the country of the United States.
I have blessed them with prosperity and money.
But at the same time I have given them insecurity and tension....

And here is Africa . I have given them beautiful nature.
But at the same time, I have given them climatic extremes.

And here is South America . I have given them lots of forests.
But at the same time, I have given them lesser land so that they would
have to cut off the forests...

So you see fellows, everything should be in balance.

One of the angels asked...

"God, what is this extremely beautiful country here?"

God said....... "Ahah...that is the crown piece of all. " INDIA ", My most precious creation. It has understanding and friendly People. Sparkling streams and serene mountains.

A culture which speaks of the great tradition that they live. Technologically brilliant and with a heart of gold.....

The angel was quite surprised:

"But god you said everything should be in balance."

God replied --

"Look at the neighbours I gave them."

Govt to raise threshold limit for appointing Company Secretary to Rs 5 Cr

Considering the shortage of company secretaries, the government is planning to relax rules for corporates on employing a full time company secretary but their apex body ICSI is opposing the move.

At present, companies with a paid-up capital of Rs 2 crore are required to hire a full time company secretary. The government is planning to amend the Companies Act and raise the threshold limit on equity capital from Rs 2 crore to Rs 5 crore for employing a full time secretary.

Once the proposal is approved, companies with less than Rs 5 crore paid-up capital need not employ a full time company secretary and instead they can hire one on temporary basis, the officials in the know of the matter said.

The proposal is aimed at addressing the problem of shortage of company secretary in the country.

There are 31,705 companies with a paid-up capital of Rs two crore plus, whereas there are only around 15,000 qualified company secretary, making it difficult for many companies to appoint a whole-time company secretary, the officials said.

The government is planning to amend the Companies Act, 1956, which lays down the criterion for employing a whole-time company secretary, in this regard.

According to Section 383 (A) of the Companies Act, 1956, "every company having paid up capital of Rs 2 crore shall have whole-time secretaries and where the Board of directors of any such company comprises only two directors, either of them shall be the secretary of the company".

However, there is a huge gap between the availability of company secretary and their demand by companies. As per the officials, there are 19,582 qualified members of the Institute of Company Secretaries of India (ICSI), of which not even 50 per cent are in employment.

The officials said, "the companies above Rs 5 crore threshold are only 15,000 so it would be prudent to fill the demand-supply mismatch like this".

The move is going to benefit around 16,000 companies as they are not required to employ a whole-time company secretary, which would save cost for them.

However, ICSI President opines differently. "We don't want the limit to be enhanced right now. Large companies are properly governed, it is the small and medium size companies which need good governance," ICSI President Keyoor Bakshi said.

"We will write to the government requesting them not to raise the limit right now. With the economic slowdown, it may not be a right time for such a decision," Bakshi said.

He said as far as the shortage of company secretaries is concerned, the institute has seen an increase in the number of applications this year, with enrolment increasing by 50 per cent this year. Over a period of two years, the gap will be filled, Bakshi said.

This year, 35,000 students enrolled for the course of company secretaries as a result of various awareness campaign organised by the institute. Also, the ICSI is planning to increase its office count from 70 to around 150, which will promote the course, Bakshi said.

Courtesy: 'The Hindu'

Duties and Liabilities of Directors:

Here's my content published on www.cogzidel.in.....

Normally, people think that directors of companies are simply drawing fat salaries and enjoy their life on vacations / partying and so on. But, is it true in the real life scenario? The answer is .....click here to read through.....

Company Vs Partnership:

My recent article on www.cogzidel.in.....

Many proposed start-ups find it difficult to decide whether to incorporate a company or a partnership concern. Understanding the differences between the two would solve this problem .....click here to read more.....

Private Company Vs Public Company

My recent blog on www.cogzidel.in is presented herebelow....

There has been a general confusion among corporate managers about whether to have the status of their company as private or public. Well, it basically depends on the requirement it needs to be. Notably, many companies prefer it to be private considering ..........click here to read more.........

Difference between Success and Failure !!

In a temple, the Idol of the Lord and the Stepping Stone were conversing.

Stepping Stone: "What a good fate you have. We both were the same lump of rock for millions of years. The sculptor carved an idol out of you and every one is worshipping you. And look at me, I am a stepping stone and every one stands on me and stamps on. What kind of life is this?"

The Idol replied: "But do you remember that when the sculptor set out to carve an idol, it was you he chose first. You were so impatient. In one strike, you broke in to two. But when he tried on me, I grinned and bore all the hammers and chisel strikes with PATIENCE. And that's the reason for me being an Idol and you being the stepping stone."

The differences between success and failure are patience and persistence.

Nice thought !!

Once a boy went to a shop with his mother. The shop keeper looked at the small cute child and showed him a bottle-full of sweets and said 'Dear Child, you can take the sweets...'

But the child didn't take. The shop keeper was surprised. Such a small child he is and why is he not taking the sweets from the bottle. Again he said 'take the sweets....'

Now the mother also heard that and said.. 'take the sweets dear', but still he didnt take. The shopkeeper seeing the child not taking the sweets... he himself took the sweets and gave to the child. The child was happy to get two hands full of sweets.

While returning home the mother asked the child... 'Why didnt you take the sweets, when the shop keeper told you to take?'

Can you guess the response ?:

Child replies... "Mom! my hands are very small and if i take the sweets i can only take few.. but now you see when uncle gave with his big hands, how many more sweets i got!

Morale: When we take we may get a little, but when God gives us, we get more beyond our expectations and more than what we can hold..!!