pas pl ning refers to a process of decj jvities. Business planning at tof business activi ce ccs to the following questions: ee acces in terms of product profits, etc. What should be our future position, say 5 years fro, Nhat should be done to reach our future position? lieve our targets? INING PROCESS: ironment: The business firm ent prevailing within the includes analysis of : itment and dedicationplant M47 customers requirements and preferences, i jnternational environment, etc, al environment indicates Bs \ threats that needs to overcene ust be SMART - specific, measurable, and time bound. Strategies: The management team must es. Generally, a strategy is a long term plan ives. However, nowadays, business firms frame strategies as well. ulation of strategies is as follows: )s Thetop management frames the corporate strategy - such "as growth strategy. ¢ Thedivisional heads frame division-wise business strategy in the case strategic business units (SBUs). . ¢ The departmental heads frame the functional strategies such as production strategies, marketing strategies, etc. * The lower level managers frame operational strategies. Analysis of Strategies/Plans: The management must analyse the strategies and plans. Cost-benefit analysis must be nducted of each and every strategy or plan. ng 7Costs can be analysed in terms of product and administration expenses ™d Benefits can be analysed in terms sale profits, goodwill, etc. Pine 6. Selection of Best Strategy: The management 0 , must select the best strategy or plan. The best «t one which fulfils the following conditions: ‘@ _ Itisinline with the mission statement of the org _¢ _Itfits with the internal environment of the organ r EaAMNisatig, Tt is relevant in terms of external environment anagement needs to make s to undertake the various ‘gets and objectives. There ous types of resources:B Teview of performance. The fi lout whether or not the organisation achieve objectives. If required, necessary nned set of interrelated tasks to be implemented jod. Before starting a project, planning is necessary successfully complete the work. Project planning e print for starting and managing the project. ig provides guidelines for completion of a project time-frame, usually with defined stages, and with urces. 85 under project planning include: ectives. fying deliverables (A project management term for the ible goods or services that will be provided upon the ion of a project). luling the project (the start time and completion time of project). ming supporting plans.150 — Importance of Project Planning The importance of project planning is explained a 1. Achievement of Strategic Goal 'Y succe a company to accomplish its strategic goals. T advantage, a firm must its projects ef Ment of working eapital requirement.@ = Projected Balance Sheet @ = Cash flow statement e@ Other notes and statements. ibility study is a preliminary study undertay, eas tiasithy The results of this study are za to teton, decision whether or not to proceed with the Project. iris to Mg of possible alternative solutions to a problem and a ei ama, on the best alternative. Generally, feasibil ity studieg _ ) where projects involve large funds. Feasibility st,, ly ig and evaluation of a proposed project to determ (a) is technically feasible (b) is feasible within the estimated cost (c)_ will be profitable. Pre-Feasibility Study s pre-feasibility study may be conducted first to sort out alternatives, e pri g with a full-blown fe ity analysis. If itis found idea is not feasible, it wil] the findings indicate to pr ti, CON ain ae ine if jt.= 167 money that will be required to develop/ purchase it, or not the firm has enough experience using that ibility: Safety feasibility is another important aspect , safety id be considered in project planning, Safety feasibility gpatshow an analysis of whether the project is capable of being and operated safely in the interest of the Seemann wepecpia Hvbig Bs eicinky of Berproject saa] Feasibility: A politically feasible project may be to as a “politically correct Project.” Political tions often dictate direction for a proposed project. isis particularly true for large projects (such as SEZ projects f ay have significant government inputs and politic : , there may be political support for a certai Koval its merits. On the other hand, a worthy face stiff opposition simply’ because of politi . feasibility analysis requires an eval lity of project goals with the prevail \ st beCommerce l(E.Y.B Com Economic Feasibility: This involves the feasibitty My proposed project to generate economic benefits, A bene Of the analysis and a breakeven analysis are important a titseo., evaluating the economic feasibility of new industria] . of The tangible and intangible aspects of a project aie Ojects translated into economic terms to facilitate a COMSistent 4 for evaluation. t baci 7, Legal Feasibility Study: Some projects must face legal Ste When an organization has either internal or extemal ; y. ‘counsel, such reviews are typically standard. However, fea : ect may face legal issues after completion. 8. Operational Feasibility: All projects must conduct Operatio, feasibility. The firm must find out whether or not the mine organisational set up would be in a possible to undertake ps : operations. The firm must also analyse the social factors that may have an impact on the workers. 9 Financial Feasibility: Financial feasibility shoulg be ingui from economic feasibility. Financial feasibili involves the capability of the organization to raise the jate funds needed to implement the proposed Project, Loan availability, equity, and loan schedule are important ‘aspects of financial feasibility analysis. a E ‘onducting Feasibility Study (Importan dy is a critical step in the business asses ance of feasibility study is as follows: is an effective way to safe ing stage and re he Business Plan willBusiness firms need to select the best suitable location for upa business unit. A study conducted by IIFT, New Delhi, that manufacturers consider the following factors, in importance, while locating units in any particular State: I a a Nl — cae169 Haw and order situation, facilities like roads, power, etc. e and approvals. atic control. Concessions. y, it is clear that manufacturers give top priority Situation, and least priority to incentives and from above factors, certain other factors such as materials, proximity to the market, etc., must be important factors that affect location include the ad Order Situation: This is one of the most important which business firms consider in locating a business any state or region. If there is poor law and order then it does not make sense to locate business units areas or states, unless there are compelling factors such lability of heavy or bulky raw materials only in that area. business firms are reluctant to set up business units in -Eastern States such as Bihar because of law and order ms. fructure Facilities: The selected site should have adequate ucture facilities. Without proper infrastructure facilities, Duld be difficult to undertake operations efficiently. The asiructure facilities form the backbone of many types of ustries without which their activities may come to a virtual alt. Some of the important infrastructure facilities include:y : Commerce - 1 (FY p ' se YB.Cg “Om: SR e Transport and communications. Phy e Banking facilities @ Power, water, etc. 3. Industrial Relations: There must be presence of 800d j felations. The industrial relations atmosphere shouig “St unduly affected by the presence of militant labour fo." be selfish trade unions. In India, in certain states, there a . ang congenial industrial relations, and therefore, business fie o reluctant to locate units in such states, despite ied favourable factors such as good infrastructure facilities, aa is Wy and order situation. 4 Skilled Workforce: A good number of industries Tequite skit labour force such as engineers, management experts, comp led programmers, etc. A business firm should consider th availability of competent and skilled workforce in a parti ea State. However, nowadays, due to mobility of skilled labou, force, this factor is losing importance. It is to be noted tha unskilled workforce is not a problem in any area or state especially in a country like India. Social Infrastructure: There is a need for social infrastructur 4 the employees but also for the development of thei e availability of social infrastructure adds t are. There must be suitable social infrastructun es including places of worshij s such as theatres, clubs. ir states, Also, bi ts must be mini171 friendly attitude would not only attract jt in that State, but would also result in the overall t of the State. rket: Every business unit depends upon market sand services. The goods and services should on time, but also should be available to the ive price. Therefore, many units give : selection of a location. Locating a market is preferred, when: ' of Raw Material: Quite often, raw e about 50% of the total cost; so it is important not only get the raw material on time, but also at cost. Therefore, a unit may be located in the vicinity material source, especially in the case of “Gross eGross Materials are those which loose weight in the process conversion into the finished goods such as iron ore, lime e, sugar cane etc. Supporting Industries and Services: A business unit may be Hocated in such an area which is closer to supporting industries and services. For instance, if a firm wants to obtain some of the components or parts from an outside agency, then such agencies Must be located within the vicinity of the unit. Otherwise, the- busi unit may have to bear additional transport costs and F itoring quality control of the supporting units may be- “ficult due to distant location. Safety 4 ‘ “fety Requirements: Certain factories may affect the health "“ public in neighbouring areas where the plant is located. ‘ore, such industries must be located in remote areas away —172 Commerce - I (F.Y.B.Com.: $f from residential areas. For example, explosive factors m located away from residential areas. paseveral other factors thatbusiness unit has to follow legal provisions before starting the perations. At present licensing cigarettes, industrial explosives, defence, drugs and pharma and hazardous chemicals. The various legal provisions uch as alcoholFYRc tration Gf 0 —— registration of Companies ; the Companies Act, 2013; 1 Registration Under A compan is to re em under a prepared a > RC @ Memorandum of Association Association e Articles of @ List of Directors. Written Consent of Directors. Statutory Declaration. Other relevant documents. The promoters have to pay stamp d Verification of documents, the Incorporation. A public limited “Certificate of Commencement of o_oing 177 ‘The postal address of the establishment; The name, if any, of the establishment; The category of the establishment, i.e, whether itis a shop, ; ial establishment, residential hotel, restaurant, eating house, theatre or other place of public amusement _ orentertainment; and ‘Such other particulars as may be prescribed. ipt of the statement and the fees, the inspector shall, on satisfied about the correctness of the statement, register rent. The registration certificate is then issued to which shall be prominently displayed at the n of Micro and Small Enterprises (MSEs) : with investment in plant and machinery under micro enterprises. Manufacturing u in plant and machinery upto @ 5 crore small enterprises. ts must be registered with District Industries of the district concerned. Such registration is vail of benefits or assistance meant for MSEs. For @, application must be made to General Manager, ed by relevant documents. ng Food and Drugs Administration Licence : ters of business units dealing in hotels, food and drugs ito obtain FDA licence, before starting operations. Separate licences are required for wholesale trade and retail trade bod and drugs items. Bobtain FDA licence, application must be made to local FDA Uthoriti supported by relevant documents together with Bcence fees Clearance from Pollution Control Board ; Ifa business unit is engaged in manufacturing process, which May pollute the environment, then in such a ease, clearance is aN Commerce MEY.B required from State Pollution Control] Board, Th have to make ana pplication supported by re stain clearance from Pollution Control B Om,: Sty, = oy rata levant dog ter, to of ard, Umeng i S VAT & Excise Registration : The business firms subject to VAT / CENVAT " with the concerned authorities. Necessary Procedu,. Teste followed for registration under VAT or CENVAT re must The business unit may also require excise re purpose, registration may be done by the Sistratio N. For this the excise authorities. : usiness fim y" h it Registration with Directorate General of Forei (DGFT): ; 80 Trage Business firms intending to deal in foreign must Tegister yp: DGFT, and obtain Importers-Exporters Code (IEC) Number ttt -For rr ion must be made to the local along with relevant documents. DGFT office, I TAN Numbers: 4 Any individual who is a dir ector of a company should as an alternative to DI] tors of Indian coa i 179 SO sdestifiasion Neewber a. an initiat :. ‘ax Identification lative by Income Brine #t of India (ITD) for the modernization of the system for collection, processing, monitoring and caren g of direct taxes using information technology. repository of nationwide Tax related information, and established by NSDL e-Governance Infrastructure on behalf of ITD. x Deduction Account Number is required for deducting ent to parties. It is a 10 digit alpha numeric number ‘to be obtained by all persons who are responsible for or collecting tax. ction 203A of the Income Tax Act, 1961, it is mandatory Tax Deduction Account Number (TAN) allotted by Tax Department (ITD) on all TDS returns. ial Return: The secretary must file annual return within 60 days of AGM. : The Annual Return gives details such as : ie of company and its registered office address. istration details. ing of shares on stock exchange, if listed. pital structure of the company. Other relevant details. fing : The Annual Return must be signed by a director, and manager or secretary, ec Forms: The secretary has to file certain forms with the et of Companies. For instance, the secretary has to file 29 and Form 52,Form 29: In form, the director act as directors of a ¢ ompany The an undertaking to buy qualification ris Articles of Association Form 3: is form relates to the ei appointmer managers and secretary. This : Ite 4 s form must } tof di, RoC within 30 days of the conclusion ep i y meeting. t Annual Accounts: The secretar , § ary mus ith RoC. Section 220 of the Companies au® aNnya) y to file with RoC, 3 copies of h, + equines in : alli ecompany, along with 3 copies of relevangil Corporate Tax Return + Companies ~ dom, ipanies operating India have to file corp 1e following: tic and foreign companies, any in is deemed to be received in India: ear by or on behalf of such compe stic and foreign companies, an arises or is deemed to ac relevant Previous Year.181 | general meeting. The statutory report states r things: number of shares allotted, distinguishing shares is fully or partly paid up otherwise than in cash, in the case of shares partly paid up, the extent yy are so paid up, and in either case, the 1 for which they have been allotted; ount of cash received by the company in ll the shares allotted, distinguished as aforesaid; ry report must be filed with the Registrar of ies as per Section 165 of Indian Companies Act ial Resolutions: A special resolution must be filed within 30 days of its passage. Special resolutions three-fourth majority for the passage. Some of the mples of special resolution include alteration of articles, feration of name of the company, reduction of capital, etc. g of Memorandum and Articles of Association: The Memorandum of association states the objectives of the ‘company, defines its scope of operations and its relationship with the outsiders. This document must be filed with RoC to get the company registered. | The articles of association is a set of rules and regulations | tegarding the internal working of the company. It is an _ important document which needs to be filed with the Registrar | of companies for the purpose of incorporation of the company.