Subsidiary Information

In: Computers and Technology

Submitted By hitenbhagat
Words 4122
Pages 17
An Updated Guide to Establishing a Subsidiary in India by fred m. greguras, s.r. gopalan and steven s. levine

Businesses in the U.S. continue to move a portion of their development, support and other operations offshore to India, primarily for cost-saving reasons. Venture capital investors may require such outsourcing in order to reduce a company’s burn rate. While a U.S. company may initially contract for services with a third party in India, many companies establish their operations in India through incorporation of a subsidiary, a private limited company under the India Companies Act of 1956, as amended (the “Companies Act”). This memorandum summarizes certain of the legal and administrative issues that a U.S. company (the “U.S. company”) should consider in establishing an Indian subsidiary. Where to Locate the Subsidiary A key factor is the availability of a reliable employee pool with required skill sets for the services. Many U.S. software companies have established a subsidiary in Bangalore in the State of Karnataka because of its skilled work force, communications infrastructure and business friendly environment. On the other hand, Hyderabad is the center of life sciences activity in India. U.S. companies are increasingly considering establishing operations in locations other than Bangalore, such as in the cities of Pune and Chennai, that have lower costs, less competition for employees and a less mobile workforce. Employee benefits and other indirect and direct expenses are likely to be higher in Bangalore than other places in India. Bangalore still has a pool of junior employees available but senior employees are at a premium. Another important factor is where the potential local managing director lives in India. As discussed below, a preexisting relationship with a potential managing director for the India subsidiary is an important practical…...

Similar Documents

Comparing Career Options with 3m Subsidiaries in India and Spain

...Comparing Career Options with 3M Subsidiaries in India and Spain 1. Introduction The choice between two subsidiaries of 3M will be evaluated for appropriateness considering a wide number of variables. 3M is a large multinational corporation with operations in more than 65 countries, including China and Norway and its headquarters are located in St Paul, MN (3M Website). Because of its innovation, 3M has developed a wide range of products used across many industries. What makes the company stand out is that it measures its progress according to a commitment to meeting the needs of society (3M Website). As it notes on its website, this means that it placed a high value on sustainability, with specific goals to address the challenges of environmental changes (3M Website). 3M has been making the newest businesses its core focus, with the increased need for products and services in the businesses of renewable energy and technology (3M Annual Report). Recent areas of growth have been in Industrials and Transportation Safety, Security and Protection Services, and Health Care (3M Annual Report). 3M also supplies materials used in the solar industry (3M Website). The various career paths at 3M fall under the following categories: Engineering: Corporate, Engineering: Manufacturing/Quality, Finance, Human Resources, Information Technology, Marketing, Communications & Sales, Research & Development, Sourcing Operations and Supply Chain (3M Website). 3M has turned environmental......

Words: 1335 - Pages: 6

The Boston Beer Company, Inc. and Subsidiaries

...How to build a caseTable of Contents THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) December 27, December 29, 2008 2007 ASSETS Current Assets: Cash and cash equivalents $ Short-term investments Accounts receivable, net of allowance for doubtful accounts of $255 and $249 as of December 27, 2008 and December 29, 2007, respectively Inventories Prepaid expenses and other assets Deferred income taxes Total current assets Property, plant and equipment, net Other assets Goodwill Total assets $ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued expenses Total current liabilities Deferred income taxes Other liabilities Total liabilities Commitments and contingencies Stockholders' Equity: Class A Common Stock, $.01 par value; 22,700,000 shares authorized; 10,068,486 and 10,095,573 shares issued and outstanding as of December 27, 2008 and December 29, 2007, respectively Class B Common Stock, $.01 par value; 4,200,000 shares authorized; 4,107,355 shares issued and outstanding Additional paid-in capital Accumulated other comprehensive loss, net of tax Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 9,074 $ — 18,057 22,708 16,281 2,734 68,854 147,920 1,606 1,377 219,757 $ 79,289 16,200 17,972 18,090 4,252 2,090 137,893 46,198 12,487 1,377 197,955 $ 20,203 $ 46,854 67,057 9,617 3,055 79,729 17,708 42,449 60,157 1,215 2,995 64,367 101......

Words: 1572 - Pages: 7

Information

...describe the advantage of using the relational model. (6). Create an E-R diagram using graphical depicting software that could theoretically be used in a restaurant application. Now that you know the purpose of this assignment, I will define three key terms that will be discussed in this assignment. The first term is Database (DB), which is a collection of information organized in such a way that a computer program can quickly select desired pieces of data. You can think of a database as an electronic filing system. Traditional databases are organized by fields, records, and files. To access information from a database, you need a database management system (DBMS). This is a collection of programs that enables you to enter, organize, and select data in a database. The second term, Entity-Relationship Model (ER) is a way of graphically representing the logical relationships of entities or objects in order to create a database. The ER model was first proposed by Peter Pin-Shan Chen of Massachusetts Institute of Technology (MIT) in the 1970s (Ricardo, 2012, p. 19). The third term is relational model, which views information in a database as a collection of distinctly named tables. Each table has a specified set of named columns, each column name or attribute being distinct within a particular table, but not necessarily between tables. Next, I will address the advantages of a relational model specific to ACME Global Consulting. Since Acme Global Consulting is a leader in......

Words: 1493 - Pages: 6

Subsidiary Ledgers and Special Journals

...Subsidiary Ledgers and Special Journals The company makes daily postings from the sales journal to the individual accounts receivable to the subsidiary ledger daily (Weygandt, Kimmel, & Kieso, 2008). A subsidiary ledger allows the general journal to have fewer details then needed, with the advantage of providing an up to date balance on specific accounts. Another advantage of the subsidiary ledger is the accounts are listed individually which helps to more easily locate errors. The general ledger account that summarizes subsidiary ledger is called a control account (Weygandt, Kimmel, & Kieso, 2008). The control account, which includes the two ledger accounts; accounts receivable and accounts payable, allows companies to prepare monthly financial statements (Weygandt, Kimmel, & Kieso, 2008). The four special journals that are used in addition to the general journal, include the sales journal, cash receipts journal, purchases journal, and cash payments journal. The sales journal is used to record all sales of merchandise on an account and can be very helpful because you only have to use one line for entries which reduces the chance of errors (Weygandt, Kimmel, & Kieso, 2008). The cash receipts journal is used to record all cash received, such as sales, that take place in the business. A benefit of the cash journal is that you can view weekly or monthly reports of cash flow in the business. The purchases journal is used to record all purchases of merchandise on account, listing......

Words: 285 - Pages: 2

Information

...There are Information Systems and Applications use by different parts of an organization. The ones that will be discussed in this essay are: Accounting, Finance, and Human Resource Department. The different systems that interchange within the organization’s departments are: Management Information System, Enterprise Resource Planning System, and the Expert System. Each of these systems help management had access to important information that help make changes on the organization’s productivities and uses the information to make changes within the organization and all business decisions. For example, the production plans and production results are inputs to the budgeting and accounting system (for financial planning) and the human resources systems (for staffing, training, etc.). The systems use a blend of computer and communications, hardware and software, human-machine interaction, and internal and external sources of data. A management information system (MIS) is a system or process that provides the information necessary to manage an organization effectively. MIS is viewed and used at many levels by management. It should be supportive of an organization’s longer term strategic goals and objectives. It is also those everyday financial accounting systems that are used to ensure basic control is maintained over financial recordkeeping activities. Financial accounting systems are an important functional element or part of the total MIS structure. An Enterprise Resource......

Words: 447 - Pages: 2

Establishing a Subsidiary as a Corporation

...The purpose of this memo is to help explain why a subsidiary would be set up as a corporation. When looking into deferred taxes, it is imperative to look into what the Financial Accounting Standards Board (FASB) has to say about the subject. " deferred tax liability is recognized for temporary differences that will result in net taxable amounts in future years." ("Financial Accounting Standards Board," n.d.). More simply stated deferred tax is a tax that is paid at a later period (ex. income tax, capital gains tax) which when the taxable item is obtained. An example of deferred taxes and the methodology used to determine them would be a 401k plan. The moneys are paid into the plan, and the taxes are not due until the money is withdrawn. Reporting accounting changes and error corrections is a process governed by the Financial Accounting Standards Board (FASB). The first thing to keep in mind is that an error is not the same thing as a correction. An accounting error is "Quantitative error caused by negligence or misapplication of accounting policies and/or the provisions of GAAP; any accounting mistake except fraud.” ("Businessdictionary.com", 2014). An accounting change is “Alterations or modifications that affect (1) accounting methods (such as a new depreciation schedule, or changeover from cash basis accounting to accrual basis accounting, or vice versa), (2) accounting estimates (such as earnings shortfall or amount of bad debts), or (3) accounting entity......

Words: 1198 - Pages: 5

Information

...6.0), Microsoft office, Auto CAD, Networking (LAN), Adobe Photoshop, Ulead Video Studio, Linux Operating Graphics Design, 10g Oracle Database Maintenance. ❖ Language knowledge : Bangla, English (Spoken Course from LOTUS). ❖ Project knowledge :Banking Management System Software (Sonali & krishe Bank, BSL Branch.) Automatic Door (Logic Design) EXPERIENCE Present Job: |Employer |Ring Bangladesh.(an ORASCO TELICOM Subsidiary) | |Position |Zonal Corporate Account Manager. | |Posting |Chittagong | |Working Area |Chittagong | |Joining Date |February 2007 | | | IT ......

Words: 766 - Pages: 4

Information

...Information Assurance and Security Nick Rosasco Karthikreddy Nalapatla 3884252 What is a Port Number A port number is a way to identify a specific process to which an internet or other network message is to be forwarded when it arrives at a server. For the transmission control protocol and the user Datagram protocol, a port number is a 16 bit integer that is put the header appended to a message unit. This port number is passed logically between the client and the server transport layers and physically between the transport layer and the Internet Protocol layer and it will forward it on to the other layers. For an example, a request from a client to a server on the internet may request a file to transfer from the host File Transport Protocol (FTP) server. In order to pass that request which is passed by us to the FTP in the remote server, the Transmission Control Protocol (TCP) identifies the port number which is of 16 bit length, then that port will forward the request to the FTP Server. FTP and the FTP Port Number The File Transfer Protocol (FTP) is a standard network protocol used to transfer computer files from one host to the other host over a TCP – based network, for an example Internet. FTP is a Client – server architecture and uses a separate control and the data connections between the client and the server. The model of the FTP is shown below. Fig 1: File Transport Protocol Model Executing......

Words: 1400 - Pages: 6

Information

...reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Copyright 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Licensed to: CengageBrain User International Financial Management, 11th Edition Jeff Madura Vice President of Editorial, Business: Jack W. Calhoun Editor-in-Cheif: Joe Sabatino Executive Editor: Mike Reynolds © 2012, 2010 South-Western, Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright......

Words: 17006 - Pages: 69

Subsidiary Ledgers and Special Journals

...Subsidiary Ledgers and Special Journals Axia College of University of Phoenix XACC/280 Financial Accounting Concepts and Principles Professor Subsidiary Ledgers and Special Journals * The four special journals are; cash receipt journal, sales journal, purchase journals, and cash payment journal. These journals are used by some businesses as a simple way to record frequently occurring transactions. The sales journal is used to record all sales of merchandise on account. Cash receipt journals are used to record cash receipts transactions. Purchase journals record only purchases of merchandise on account. Cash payment journals are used to record only cash payment transactions. (www.wikipedia.org) * A subsidiary ledger is a set of accounts whose combined balance equals the balance of the corresponding control account in the general ledger. The subsidiary ledgers divide large amounts of financial data into more manageable parts. (www.businessdictionary.com) * A control account is a general ledger account which reflects the balances of its related subsidiary accounts. (Weygant, 2008) * The two general ledger accounts that act as control accounts for a subsidiary ledger are accounts payable and accounts receivable. These accounts act as a crosscheck of the accuracy of the subsidiary accounts. The general ledger will only include the total amount of accounts payable or accounts receivable. The subsidiary ledgers will give you the specifics of each...

Words: 351 - Pages: 2

Wholly Owned Subsidiary

...to another country would take extra costs for the licensing, new promotional materials depending on the culture and market information, and other administrative costs. * Entering the export business requires careful planning when it comes to their different strategies, such as picking the most competitive price and knowing the threats and opportunities for the exported products of AMC. Wholly Owned Subsidiary Advantages: * The operational and strategic control can be influenced highly by the mother company, which is the Alaska Milk Corporation in the Philippines. * Cost synergies are possible because AMC Philippines and the subsidiary to be established in Indonesia could use similar financial systems. * Since the level of production of milk in Indonesia cannot meet its demands, it would be advantageous for the subsidiary because the supply of raw materials can come from the suppliers of AMC Philippines. * According to a special counsel in Melbourne, Indonesia could become the 7th largest economy in the world by 2030. This would be very advantageous in the long run for the subsidiary and the mother company. * In order to do business, AMC may need to acquire a local company. This could be an advantage since they already have an established line of networks already. * Liabilities and credit claims are locked within the subsidiary. Disadvantages: * AMC may have to acquire a local company in order to be permitted to have business in Indonesia,......

Words: 497 - Pages: 2

P3 Subsidiary Diploma Business

...where you can can read about other products and compare them to Apple products, you can find these through Google or any other search engine. The main reason customers will compare providers is so that they get the best possible deal and is worth every penny they spend so Apple must step up to to consider this and not to be beaten by the competition. Comprehensive and up to date information is really important when speaking about business. Apple must consider keeping their products information up to date because this will be the key to enticing customers in to buying their products. All companies will ensure that all informations give and displayed is comprehensive and is kept up to date for example Next (www.next.com) the reason why I chose next is because simply to other companies Next has a lot of competition meaning the more sales sold means a higher profit which is the key to a successful business. Even the smallest of product information changed should be noted so that the customer can be aware of this because the customer will then make the decision will they buy it or not. Product information should be taken into real consideration because if Next change the price to much especially is they increase it this can put the customer off purchasing the product. Another example that both Apple and Next must take into considerations hen using their online services is the availability of the product because customers would not like to try and buy the product then when they......

Words: 518 - Pages: 3

Subsidiary and Firm Specific Advantage

...        Subsidiaries’  role  and  contribution  in  the  creation  of   new  firm-­‐specific  advantages  (FSAs)   Carlotta  Assetta  –  Student  Number:  11112980   ABSTRACT   This   paper   attempts   to   more   precisely   delineate   the   MNEs   subsidiaries’   role   and   contribution   to   new   firm-­‐specific   advantages   development.   I   present   a   new   framework,   which   ranks   foreign   subsidiaries  contribution  to  FSAs  creation  according  to  two  criteria:  Subsidiary’s  embeddedness  in   the  host-­‐country  environment  and  strategic  importance  of  the  local  environment.                                                                                                                                                                                                                                                          ...

Words: 3228 - Pages: 13

Subsidiary and Special Ledgers Journals

...Deanna Cain XACC/280 CheckPoint: Subsidiary and Special Ledgers Journals The four different special journals consist of the Sales Journal, Cash Receipt Journal, Purchases Journal, and the Cash Payments Journal. Each of the Journals is a very important part in the final outcome. The Sales Journal is chronological entries of all goods sold as well as services provided; which ever the case may be. Keep in mind that the cash sale entries are not entered here. The advantage of using the Sales Journal is that this Journal reflects the history of all sales made by the company; providing dates and customer information for payment. The company would use the Sales Journal when there has been sales made or services have been provided, and the transactions were made by credit (non-cash transactions). The Cash Receipts Journal is where the chronological entries of all cash received for sales and services, therefore credit type sales are not entered in this Journal; they are recorded in the Sales Journal instead. The advantage of using the Cash Receipts Journal is that it is designed to record all cash coming into the company whatever the source may be. The business would use the Cash Receipt Journal when using the accrual accounting system to track the cash it receives in exchange for a sale or a service provided. The business would use the Purchases Journal when purchases are made with credit. This Journal does not record any cash purchases; they are......

Words: 510 - Pages: 3

Elizabeth Visits Gpc's French Subsidiary

...Relations | Site Map | Contact Us | Help | Follow us on Twitter | Find us on Facebook | eBay official time | | | | | © 1995-2012 eBay Inc. All Rights Reserved. eBay and the eBay logo are among the registered trademarks of eBay Inc. Kelley Blue Book® and Blue Book® are registered trademarks of Kelley Blue Book Co., Inc. Other trademarks and brands are the property of their respective owners. Some automotive images © eVox Productions LLC, all rights reserved. Use of this Web site constitutes acceptance of the eBay User Agreement and Privacy Policy. | | *Provided by AutoCheck, a part of Experian. Copyright Experian Information Solutions, Inc. 2010. All rights reserved. Experian provides these reports to you on an "as is" basis and eBay is not responsible or liable for the comprehensiveness or accuracy of the reports. eBay does not endorse any information contained in the reports. If you have any questions about the reports, contact Experian. | | | | | | | | | |...

Words: 674 - Pages: 3