Professional Documents
Culture Documents
Industrial
MSME Corporates
Policy
Make in
Skill India Survey
India
Industrial Policy
1948 Shyama Prasad Mukerjee:
1 industrial policy.
st
Atomic
Energy
Public Atomic
Secto Minera
r only ls
Rail
Transp
ort
Industrial License required for
Village Organi
Cottag
industr zed
e
y Unorg.
MSME SSI
Cottage Village industry
Family members
No hired Area <10k
Capital investment population
negligible Investment<15k /
Handmade worker
products
1. Social security, EPF, Maternity benefit 17% of
available. units
2. Factories Act, 1948 [10 workers, with Organized
power = registered units] Sector
3. Shops and Commercial Establishments
Acts of State Governments
4. Industrial Employment Standing
Orders Act, 1946 etc
5. Plantation acts, bidi-cigar
6. PSUs, Cooperatives
1. Not covered under organized
83% units
sector.
Unorganize
2. But no consensus over definition,
d sector
esp. for service sector.
3. Unorganized Workers Social
Security Act 2008
4. Social security boards setup at
national and state levels.
5. Social security, fin.inclusion => in
HRD ppt later.
Small industries
Village Organi
Cottag
industr zed
e
y Unorg.
MSME SSI
MSME Classification: investment
Mfg. Sector
(32%)
MICR upto 25 lakhs
O
SMA >25 lakhs
LL
MED. >5 cr.
Upper limit
MSME Classification: investment
Mfg. Sector Service
(32%) (68%)
MICR upto 25 lakhs upto 10
O lakhs
SMA >25 lakhs >10
LL
MED. >5 cr. >2 cr.
Upper limit upper limit
Small industries
Village Organi
Cottag
industr zed
e
y Unorg.
MSME SSI
- Pickles & - Safety matches SSI
Investment
chutneys - Fire works
- Bread - Agarbatties
up to 1
- two edible oils - Glass bangles crore
(without solvent - Steel almirah (varies by
extraction) - Rolling shutters item)
-Mustard oil,
Ground nut oil - Steel chairs,
- Wooden tables, furniture
furniture and - Padlocks
fixtures - utensils-
- Exercise books stainless steel,
and registers aluminum
- Wax candles
SSI
1. Non-MSME industry (=large
industry) must get license + Items
50% export reserved
2. Doesnt apply to SEZ
License required for
MUD
ATAL
RA
SETU
Atal Innovation Mission (AIM) Budget
2015
Atal
Under NITI ayog with Rs.150
innovation
crores.
mission
Innovation using experts and
academicians, R&D hubs.
(SETU) Self-Employment and Budget
2015
Talent Utilization SETU
Under NITI with Rs.1000 startup
crores.
Help start up companies in
tech-expertise, finance,
incubation etc.
Focus: technology / electronics
sector
Policy 2012: 3 years MSME
All central Government units Public
Procureme
20% of total purchase from nt
MSME
Within that 4% from SC/ST
Bill 2012: transparency in
public procurement >50 lakhs.
Competitive bidding, Jail terms
etc. Modi trying to revive. (Mar-
20-2015)
Legal framework for industries
Com
pani
Facto es
ry Act
Labo
r
refor
ms
WHY?
1. Labor laws: concurrent list
Labor
2. 44 union, 150+ state laws
reforms
3. Inspector-bribe raj
4. Industrial dispute act 47
5. >100 workers, Government
permission before laying off
6. Apprentices used as regular
workers
7. Super-contractors: no EPF, SS
Solution
1. Budget 2015: If 50 "regular
workers": owner eligible for Labor
deduction. Earlier 100 reforms
required.
2. Two bills in LS (2014, Aug)
1. Factories Bill
2. Apprentice Bill
Laws
1. 1948: Factories Act
Factories
2. 2010: Narendra Jadhav
Act
Committee
3. 2014: Amendment bill
Meaning
criteria 1948 2014
Factories
power 10 20 Act
used workers
power 20 40
not used workers
Higher ceiling 70% of units will escape. Heath
safety compromised
Parliament standing Committee on Labor
Government to review the bill (2015-Jan-Feb)
Factories
1. Women workers can do Women
Bill
nightshift Empowerm
2. Safety provision and home ent
transport
3. Can work on moving / heavy
machinery
4. Exempt: PH and mothers
1. Cool water irrespective of Factories
#workers Bill
Workers
2. Spitton, sitting facilities=> Facilities
compoundable offense.
3. Restroom, lunchroom >75 workers
4. Canteen: 200> workers
5. Self-certification
6. Union can also make rules. (earlier
only states)
Factories
1. 100 hours overtime per 3
Bill
months Overtime
2. Min. 90 days / year to get
paid leaves.
3. Capacity: horsepower=>
kilowatts
4. Can decide its own
workweek.
Factory Reforms: 4 Benefits
Com
pani
Facto es
ry Act
Labo
r
refor
ms
Corporate governance: Meaning?
Way of directing the company
To protect stakeholders interest
To comply with legal-regulatory req.
Corporate governance: Meaning?
Not mere technical compliance
Moral-ethical compliance
Absence: fraud, mismanagement
Corporate governance in India
SEBI Norms:
Companies Act
Sep 2012: Adi
Godrej Original 1956
April 2014: Aug 2013 (470
Published section)
Effective 1st Oct.
2014 Feb 2014: rules
notified
Types of companies
Capital: 50 L
Private ltd.
Capital 1 lakh
2-200 Listed
Public Ltd. Vodafone
Capital 5 lakh India.
Unlisted
7-unlimited
Nokia India
52
Capital req. removed in types
Amendment bill 2014, for Companies
ease of doing act
Anti-argument: shell
companies, tax avoidance
>9 lakh companies in India,
90% of them Private limited
companies.
Infosys
1992
Privat IPO
e ltd public launc
. Ltd h 1993
1981
54
Holding vs. Subsidiary Companies
Delight
Reliance Protein
Reliance industries
Retail Reliance
wellness
(Mukesh)
CNN-IBN
CNBC
g
n y Network 18 Colors
i
d n
o l y
H mpa
r
a s
i
sid ie MTV
C o Sub an
p Forbes India
om
c Magazine
Special Purpose Vehicle
Chandigarh Tricity
MoU
Governm
ent
Dept.
PSU Undertaki
ngs
Governm
Public
ent
Corporati
Companie
ons
s
PSU = RTI applies
Government
Public Corporation
companies
ONGC, SAIL, Coal India LIC, Air India, IDBI, UTI
ltd. Act of Parliament / State
Registered in Companies Legislature
Act Wholly financed by
Government owns >50% Government
Majority BoD. all BoD.
Employees Not public Govt. Employees Not public Govt.
CAG appointed pvt. Directly by CAG (some
auditors exception)
60
What is SBI then?
Presidency banks: Bengal, Bombay, Madras
Imperial Bank of India (1921)
SBI Act 1955- Government owned Public
Corporation
SBI life insurance COMPANY ltd. JV between
SBI + BNP Paribas
SBI General Insurance COMPANY ltd. JV
between SBI +IAG (insurance Australia group
SBI Mutual funds Private limited Company
Types of companies
One person
Companies
Private ltd.
Act
2-200 Listed
2013
Vodafone
Public Ltd. India.
7-unlimited Unlisted
Nokia India
62
Companies Act 2013
Board of Directors
Chairman
SHARE-HOLDERS IPO
Companies
Act
Chairman Board of
directors
Executive
Director/Full-time
BoD
Nominated
(Bank/Govt.)
Independent Director
65
Companies Act: Minimum Directors
1 2
More by AGM
1 woman
1 Indian
RESIDENT
(Min.182 days)
66
Companies
Act
Chairman Board of
directors
Executive
Director/Full-time
BoD
Nominated
(Bank/Govt.)
Independent Director
67
Companies Act 2013: Independent director
Not a Promoter
Pecuniary interestX (except salary
as the Director of the board)
MD nominatedX
EmployeeX
Companies Act: Independent Directors
NA
companies
NA Terms: 5 years X 2
Cooling off 3
years
AGM Perfom.
review
69
Companies Act 2013
BoD=>CSR
Committee
Report to
AGM
Serve
directly /
NGOs
Companies Act 2013
CA/accountant=> debar
Appeal: NFRAA
ICAI unhappy (Chartered
Accountants Act, 1949)
4 statutory bodies
Minority Transparen
shareholders cy
Salary
Independent
Committee
Directors
under ID
Audit
E-Voting
Committee
RPT- Related Whistleblower
party transaction s