Invest In India » Threshold http://investmoneyinindia.com Indian Financial News Resource Fri, 10 Feb 2012 08:03:08 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Government to scale up the investment entrance for MSME http://investmoneyinindia.com/3644/government-to-scale-up-the-investment-entrance-for-msme http://investmoneyinindia.com/3644/government-to-scale-up-the-investment-entrance-for-msme#comments Wed, 23 Nov 2011 15:08:15 +0000 Ziaulla Namani http://investmoneyinindia.com/?p=3644 ©2009 Copyright by Invest In India

]]> The government proposes to scale up the investment threshold for categorisation of units into micro, small and medium enterprises, MSME Minister Virbhadra Singh said today.

“Investment limits were fixed in 2006. Certainly, there is a case for amendment in the threshold,” Singh told members of the Forum of Financial Writers here.

Under the Micro, Small and Medium Enterprises (MSME) Development Act,2006, a unit with investment of up to Rs. 25 crore in plant and machinery is considered as micro. While it is Rs. five crore for small scale, the same for medium enterprise is fixed at Rs. 10 crore.

An amendment in the law would be brought in by the MSME ministry in the fiscal 2012-13, the minister said.

Asked about the threat to the domestic MSME sector from big imports from China, he said: “We will have to find ways to protect our industry.”

India is running a trade deficit of over USD 20 billion with a large-scale Chinese imports flooding the Indian markets.

The MSME sector is crucial for the Indian economy as it accounts for 45 per cent of the manufacturing output and 40 per cent of the total exports of the country. There are more than 25 million micro, small and medium enterprises in the country, employing over 60 million people.

Singh said under the Prime Minister’s Employment Generation Programme (PMEG), anyone wanting to set up a small or micro enterprise is able to avail bank loan as well as an upfront subsidy. Government would be spending over Rs. 1,000 crore for subsidy alone in the current fiscal, he said.

 

Source – PTI




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]]> http://investmoneyinindia.com/3644/government-to-scale-up-the-investment-entrance-for-msme/feed 0 Journey through the Parachutes in Business– http://investmoneyinindia.com/519/journey-through-the-parachutes-in-business http://investmoneyinindia.com/519/journey-through-the-parachutes-in-business#comments Mon, 01 Dec 2008 17:23:00 +0000 Tushar Mathur

Ancient alchemists tried to turn lead into gold. But here's an idea for a new, 21st century form of alchemy: Let's try turning golden parachutes into leaden parachutes. "Golden parachutes" are too often an illogical policy in normal times -- for example, when executives who run companies into the ground receive giant outgoing pay packages. A brief introduction to various parachutes is as below:

Golden Parachute

An employment contract or agreement guaranteeing a key executive of a company substantial severance pay and other financial benefits in the event of job loss caused by the company's being sold or merged. Golden parachutes are generally defined as those that exceed the IRS threshold for excessive severance payments, meaning that they equal or exceed three times the recipient's average salary for the prior five years.

Silver Parachute

Like golden parachutes--which are received by the top executives in the corporation--silver parachutesinclude severance pay, stock options and bonuses but are offered to a larger number of employees.. 

Less prevalent than golden parachute plans, and slightly less lucrative, are so-called "silver" parachutes, which are sometimes awarded to executives below the top level. Siske says these plans typically pay out about 1.5 to 2.5 times the recipient's annual bonuses. Often the last isn't a significant issue, since for ex salary, bonus and benefits; although they sometimes do not cover executives at these level bonuses tend to account for a much smaller percentage of total compensation than they do for CEOs and other senior managers.

 Tin parachute

Even less common than gold or silver parachutes are tin parachutes--severance plans that cover all of the employees of a company in the event it undergoes a change in control. The value of a tin parachute will vary significantly from company to company, says Siske, but will typically provide a severance payment linked to the recipients' years of service and/or their age, often with a cap, such as 1.5 times annual compensation.

 Platinum Parachute

In some cases, severance packages awarded to senior executives have been termed "platinum parachutes" by the business media, both because of the enormous size of the payments and because they haven't always been tied to a change in control of the company. Some of the most prominent recipients have included former Mattel Inc. CEO Jill Barad, who benefited from a deal valued at $50 million when she left the toy maker amid mounting losses.

©2009 Copyright by Invest In India

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Ancient alchemists tried to turn lead into gold. But here’s an idea for a new, 21st century form of alchemy: Let’s try turning golden parachutes into leaden parachutes. “Golden parachutes” are too often an illogical policy in normal times — for example, when executives who run companies into the ground receive giant outgoing pay packages. A brief introduction to various parachutes is as below:

Golden Parachute

An employment contract or agreement guaranteeing a key executive of a company substantial severance pay and other financial benefits in the event of job loss caused by the company’s being sold or merged. Golden parachutes are generally defined as those that exceed the IRS threshold for excessive severance payments, meaning that they equal or exceed three times the recipient’s average salary for the prior five years.

Silver Parachute

Like golden parachutes–which are received by the top executives in the corporation--silver parachutesinclude severance pay, stock options and bonuses but are offered to a larger number of employees.. 

Less prevalent than golden parachute plans, and slightly less lucrative, are so-called “silver” parachutes, which are sometimes awarded to executives below the top level. Siske says these plans typically pay out about 1.5 to 2.5 times the recipient’s annual bonuses. Often the last isn’t a significant issue, since for ex salary, bonus and benefits; although they sometimes do not cover executives at these level bonuses tend to account for a much smaller percentage of total compensation than they do for CEOs and other senior managers.

 Tin parachute

Even less common than gold or silver parachutes are tin parachutes–severance plans that cover all of the employees of a company in the event it undergoes a change in control. The value of a tin parachute will vary significantly from company to company, says Siske, but will typically provide a severance payment linked to the recipients’ years of service and/or their age, often with a cap, such as 1.5 times annual compensation.

 Platinum Parachute

In some cases, severance packages awarded to senior executives have been termed “platinum parachutes” by the business media, both because of the enormous size of the payments and because they haven’t always been tied to a change in control of the company. Some of the most prominent recipients have included former Mattel Inc. CEO Jill Barad, who benefited from a deal valued at $50 million when she left the toy maker amid mounting losses.




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