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  • BDL 1

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    The document discusses several topics relating to proposals requiring concurrence or approval: 1. When writing off amounts due to an inquiry committee's decision, the constitution and recommendation of the committee must be examined. 2. Proposals for sale, lease, or alienation of company property require board approval and must not contradict the company's articles of association or harm the company's interests. 3. Proposals for project reports require initial feasibility reports analyzing technological and economic details, followed by preliminary and detailed project reports within 24 months for board and government approval. Internal rates of return must exceed 12% according to government policy. Funds cannot be committed or spent until government approval.

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    The document discusses several topics relating to proposals requiring concurrence or approval: 1. When writing off amounts due to an inquiry committee's decision, the constitution and recommendation of the committee must be examined. 2. Proposals for sale, lease, or alienation of company property require board approval and must not contradict the company's articles of association or harm the company's interests. 3. Proposals for project reports require initial feasibility reports analyzing technological and economic details, followed by preliminary and detailed project reports within 24 months for board and government approval. Internal rates of return must exceed 12% according to government policy. Funds cannot be committed or spent until government approval.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    4 views1 page

    BDL 1

    Uploaded by

    dskrishna
    The document discusses several topics relating to proposals requiring concurrence or approval: 1. When writing off amounts due to an inquiry committee's decision, the constitution and recommendation of the committee must be examined. 2. Proposals for sale, lease, or alienation of company property require board approval and must not contradict the company's articles of association or harm the company's interests. 3. Proposals for project reports require initial feasibility reports analyzing technological and economic details, followed by preliminary and detailed project reports within 24 months for board and government approval. Internal rates of return must exceed 12% according to government policy. Funds cannot be committed or spent until government approval.

    Copyright:

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    Where it is necessary to write-off the amount pursuant to the decision of the enquiry committee, duly constituted for this purpose, the constitution of the committee and its recommendation must also be examined.

    9.

    PROPOSAL RECEIVED FOR CONCURRENCE OF SALE,LEASE OR ALIENATION OF COMPANY PROPERTY 9.1. While clearing proposal of this nature it must be kept in mind that - The powers of approval rest with the Board of Directors - That the proposal is not in contradiction to the Articles of Association of the Company - That the interest of the Company is well protected - And that proposal is accompanied by a draft Board Paper

    10.

    PROPOSAL RECEIVED FOR CONCURRENCE IN RESPECT OF PROJECT REPORTS

    10.1 While scrutinizing the proposal received for concurrence for project reports, the following must be kept in mind. Whether initial feasibility report has been prepared. The feasibility report must contain not only technological details but also contain the economic details. Once prima-facie feasibility report has been accepted, Preliminary Project Report (PPR) is prepared, which gives the details likely market/likely quantum of order, collaborating arrangements, of likely payment towards technology transfer, royalty, value the infrastructure facility required to be augmented to take up the production, DRE details, likely cost of production of each unit and technological fall-out. The PPR should contain detailed cash flow statement. It would be essential for the Finance Section to work-out the IRR (Internal Rate of Return). As per the Government policy a project with an IRR of less than 12% after tax may not be accepted by the Government. The PPR after approval for the Board of Directors is sent to Government for approval. Until the approval is received from the Government, no amount is either committed or spent. Once the PPR is accepted and approved, within 24 months from the date, the Company is to prepare a Detailed Project Report (DPR). The DPR contain all the details as per PPR. However, in the event of change in quality of order, quantum of production, increase in Capital outlay, etc., the same need to be justified with details. The DPR after approval from the Board of Directors is sent to Government for approval.

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