Small Scale Industries A small scale industry (SSI) is an industrial undertaking in which the investment in fixed assets in plant

& machinery,whether held on ownership term or on lease or hire purchase, does not exceed Rs. 1Crore. However, this investment limit is varied by the Government from time to time. Entrepreneurs in small scale sector are normally not required to obtain a licence either from the Central Government or the State Government for setting up units in any part of the country. Registration of a small scale unit is also not compulsory. But,its registration with the State Directorate or Commissioner of Industries or DIC's makes the unit eligible for availing different types of Government assistance like financial assistance from the Department of Industries, medium and long term loans from State Financial Corporations and other commercial banks, machinery on hire-purchase basis from the National Small Industries Corporation,etc. Registration is also an essential requirement for getting benefits of special schemes for promotion of SSI viz. Credit guarantee Scheme, Capital subsidy, Reduced custom duty on selected items, ISO-9000 Certification reimbursement & several other benefits provided by the State Government.

The Ministry of Micro, Small and Medium Enterprises acts as the nodal agency for growth and development of SSIs in the country. The ministry formulates and implements policies and programmes in order to promote small scale industries and enhance their competitiveness. It is assisted by various public sector enterprises like:

Small Industry Development Organisation (SIDO) is the apex body for assisting the Government in formulating and overseeing the implementation of its policies and programmes/projects/schemes.

National Small Industries Corporation Ltd (NSIC) was established by the Government with a view to promoting, aiding and fostering the growth of SSI in the country, with focus on commercial aspects of their operation.

The Ministry has established three National Entrepreneurship Development Institutes which are engaged in development of training modules, undertaking research and training and providing consultancy services for entrepreneurship

development in the SSI sector. These are:

National Institute of Small Industry Extension Training (NISIET) at Hyderabad,

National Institute of Entrepreneurship and Small Business Development (NIESBUD) at NOIDA

Indian Institute of Entrepreneurship (IIE) at Guwahati

The National Commission for Enterprises in the Unorganised Sector (NCEUS) has been constituted with the mandate to examine the problems of enterprises in the unorganised sector and suggest measures to overcome them.

Small Industries Development Bank of India (SIDBI) acts as apex institution for financing SSIs through various credit schemes.

Provisions relating to taxation of Small Scale Industries In a developing country like India, Small Scale Industries play a

significant role in economic development of the country. They are a vital segment of Indian economy in terms of their contribution towards country's industrial production,exports,employment and creation of an entrepreneurial base.These industries by and large represent a stage in economic transition from traditional to modern technology. Small industry plays a very important role in widening the base of entrepreneurship. The development of small industries offers an easy and effective means of achieving broad based ownership of industry, the diffusion of enterprise and initiative in the industrial field. Given their importance,the Government policy framework right from the First plan has highlighted the need for the development of SSI sector keeping in view its strategic importance in the overall economic development of India. Accordingly, the policy support from the Government towards Small Scale Industries has tended to be conducive and favourable to the development of small entrepreneurial class. Government accords the highest preference to development of SSI by framing and implementing suitable policies and promotional schemes. The most important promotional policy of the Government for the SSI's is fiscal incentives in the form of tax concessions and exemptions of direct or indirect taxes leviable on production or

profits.

Promotion Promotion implies the process of informing and persuading the prospective customers about the products or services of the firm, so that they keep patronising the firm. It means to create and maintain the demand for the product of the enterprise. In other words, the function of promotion is establishing the contact with the members of society, showing them how the products offered by the firm will satisfy their needs and creating among them the desire to buy the products. It also helps customers in differentiating the product of a particular firm from the competing products of other firms. It also seeks to assure the customers about the quality and price of the product so as to prevent their shifting from a particular brand of product to another brand of product.

Client Relationship Management Client Relationship Management (CRM) means managing your client. It is a business strategy which is used to create and sustain long-term, profitable client relationships. It means understanding customers using quantitative and qualitative research, segmenting them and articulating positioning statements for each of the segments based on their expectations and contribution to profits. It is necessary in order to retain old customers, acquire new customers and improve profitability from the existing client base. The Concept of CRM makes its origin from the changed approach to business management and profitability. In other words, the traditional approach of making one-time sales is being replaced with making long-term commitments to customers. The new approach puts forward the need to have a proper customer/client relationship management (CRM) strategy in the organisation. It revolves around the customers. It is a set of processes of creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. It is a comprehensive strategy of acquiring, retaining and partnering with carefully targeted customers to enhance long-term relationships with them. This management approach seeks to create superior value for the company and the customers.

Managing your Intellectual Proficiency In today's knowledge-driven economy, intellectual property (IP) has become one of the key considerations in all business decisions. The new products, brands and creative

designs launched in the market are the result of human innovation and creativity. This innovative and creative capacity is protected under the intellectual property system. If not protected, it may be lost to competitors who may commercialise the product or service, leaving the original inventor or creator without any financial benefit or reward. Hence, proper protection of a company's intellectual property is necessary for turning ideas into those business assets which have a real market value. Insurance

Protection :- it provides protection against risk of loss and a sense of security to the businessmen. Diffusion of risks :- as the burden of loss is spread over a large number of people. Credit standing :- of the firm is enhanced as the businessman can easily transfer some of his risks to an insurance company. Continuity and certainty of business :-if all the risks were to be borne by the businessmen themselves, the business operations would have been uncertain and halting in character. Better utilisation of the capital of the firms :- as the Insurance companies take over the risk, it enables the business firm to invest and optimally utilise its capital.

Distribution Distribution of the products or services produced by a firm is an important part of managing a business. Distribution refers to the process by which products or services flow from the manufacturer or factory to reach its target consumers. The products can be distributed through direct channels of distribution in which the manufacturers deliver their products to the consumers by establishing their own distribution networks. There are also indirect channels of distribution which involve the services of one or more intermediaries (individuals and organisations) which link the manufacturers with their consumers. These intermediaries or middlemen specialise in performing distribution activities. Wholesalers and retailers are the two important forms of middlemen who act as a communication channel through exchange of product information and feedback between the producers and consumers. Managing Human Resource Manpower management is an integral part of the process of the management of a business.It is a pervasive function and is performed by all managers at all levels in an

organisation .Personnel managers or human resource managers interpret the progressive needs of the organisation and direct individual potential towards a common goal.

The specific objectives of personnel management are:

To build and maintain cordial relations between people working at different levels of the organisation.

To ensure effective utilisation of the available human resources.

To provide fair working conditions, wages and amenities to the employees.

To achieve the development of each individual employee to his/her fullest potential.

Taxes Taxes (or duties) are defined as the financial charges levied by the Government upon an individual or an organisation or property in return for the government services received by them. These taxes may be broadly classified into direct and indirect taxes. Direct taxes are those where the tax payer pays the taxes directly to the imposing authority like income tax and wealth tax. Whereas, indirect taxes are those which are not paid directly to the imposing authority but paid to someone else who acts as an intermediary link between the tax payer and the tax levying authority like excise duty and service tax.