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FINANCIAL VOICE
Asian Voice - Saturday 21st April 2012
Amit Patel has over 15 years experience in the field of Leadership and Human Resource Management
Maria Fernandes
maria@abplgroup.com
Bring in the money and brains In its immigration strategy the Government has placed emphasis on encouraging investment to the UK and on raising the skill levels even within the investment categories. The regulations that have been rolled out over the last few months have been introduced with this vision in mind. This article charts through the two themes to assess the changes. Visitor: Starting with visitors there is a category of prospective entrepreneur for those who want to come to the UK to secure funding so that they can join, set up or take over, and be actively involved in the running of, a business in the UK. Applicants must be able to show that listed organisations are supporting the application and are considering funding the proposed business. They must be able to show that there is interest in funding from either a registered venture capitalist firm, UK entrepreneurial seed funding competitions or one or more UK government departments. Entrepreneur: A Tier 1 entry clearance or in country switch is available to an individual who has £200,000 or to a person who invests £50k or more into an existing or new UK business, but only if
the funds comes from a reputable source. Third party funding is allowed, provided that the entrepreneur has unrestricted access to those funds. Entrepreneural Team: For the £200k investment, the funds can be shared between an Entrepreneurial team of up to 2 people, and both business partners can qualify for entry clearance or leave to remain in the UK on this basis. Post study workers: With the closure of the category of post study work, those who are in the UK can set up a business with £50,000 in funds. However to prevent the mushrooming of cleaning and taxi businesses there is a requirement that the occupation of the applicant will be at graduate level or above. G r a d u a t e Entrepreneur: The Tier 1 (Graduate Entrepreneur) category has opened for graduates who wish to extend their stay in the UK in order to establish one or more businesses in the UK and who have been identified by Higher Education Institutions as having developed world class innovative ideas or entrepreneurial skills. There is a limit of 1000 places available for this category and the award of these places is carried out
by the Institutes. Settlement: The entrepreneur can qualify for settlement (permanent residency) after 5 years. An initial period of 3 years is granted initially and a 2 year on extension whioch must show that they have created 2 jobs for settled workers and the required investment has been completed. Settlement is generally granted after 5 years. However there are fast track rules for settlement: • 3 years (rather than 5) if the entrepreneur creates 10 jobs for settled workers or has achieved an annual turnover of at least £5m for the UK business or 2 years if the turnover is £10m. On the employment front the bar has been raised form NQF level 4 to NQF level 6 and as a result a number of occupations will from the 14th June be removed from the Code of Practice for new applicants and these positions include Hospitality Mangers and Event Managers. Maria Fernandes has been in practice exclusively in immigration for the past 25 years. Fernandes Vaz is based at 87 Wembley Hill Road Wembley in Wembley and can be contacted by telephone on 02087330123, by email on info@fernandesvaz.com.
Air India to get `300 bn for turnaround plan
Giving a major boost to cash- strapped Air India; Indian government announced a turnaround package with Rs 300 billion equity infusion over a nineyear period and induction of 27 Boeing 787 Dreamliners. In another development, the government also approved a proposal to hive off Air India's MRO (maintenance, repair and overhaul) business and its Engineering Services as two wholly-owned subsidiaries, placing about 19,000 of around 28,000 total employees with them. Announcing the decisions of the cabinet committee on economic affairs (CCEA), Civil Aviation Minister Ajit Singh told reporters that under the approved turnaround plan (TAP) and financial restructuring plan (FRP), the airline would get an upfront equity infusion of Rs 67.50 billion. The airline has been allowed to issue government- guaranteed non-convertible debentures (NCDs) worth Rs 74 billion to its lenders, like financial institutions,
banks, LIC and EPFO. These NCDs would be used to repay part of the airline's close to Rs 212 billion working capital loans. The debt-ridden carrier has outstanding loans and dues worth Rs 675.20 billion, of which Rs 212 billion is working capital loan, Rs 220 billion long-term loan on fleet acquisition, Rs 46 billion vendor dues besides an accumulated loss of Rs 203.20 billion. The CCEA also gave its nod to the induction of 27 Boeing 787 Dreamliners and three Boeing 777-300s on sale and leaseback basis. Under this system, one party sells a property to a buyer who immediately leases it back to the seller. This arrangement allows the initial buyer to make full use of the asset while not having capital tied up in the asset. To
questions about allowing foreign airlines to invest in Indian carriers including Air India, he said a decision is likely to be taken at the next meeting of the Cabinet. Singh said the FRP proposal that additional equity of Rs 302.31 billion be infused between 2012 and 2021 in the airline was also approved by the Cabinet. "But Air India will have to fulfil the tasks set out in the TAP and meet all the milestones" on a regular basis to get these benefits. Asked if Air India would also be allowed to find a suitable foreign airline partner, the Minister said the decision to allow foreign airlines to pick up 49 per cent stake was for all Indian carriers. "Air India will have to find the right suitor ... But the government will still own it," he said. On the FDI issue, Singh further said that investment by foreign carriers would not be through the automatic route and it would have to go through all checks and balances.
Eyes Wide Shut A hundred years ago, on the night of April 14th 1912, the Titanic was descending to its watery grave and taking over 1500 souls with her. It is well documented that there were not enough life boats on the ship. However, there is a lesser known story which is perhaps even more provoking. Each lifeboat had the capacity to carry over 65 people and together, all the lifeboats had a total capacity for 1128 people. Yet there were only 710 survivors. There are stories of how some of the lifeboats still had space for more, yet those on board did not go back to help. It is easy to vilify those who choose not to answer the pleas for help. They would most certainly have seen and heard the people in the water around them and they could have easily saved some of them if they had turned around. But the fact is they decided not to. The only mitigating factors would be that most of them would have been in a heightened
state of shock and when there are only 10 spaces and 50 people trying to get into them, there is a very real risk of the lifeboat being overcrowded and then capsizing. Now rather than ask you as to what you would have done in this situation, I have a more relevant question albeit in a slightly different context. When was the last time you saw a homeless person on the street? If you didn’t stop to offer them something and let’s face it most people don’t, what stopped you from doing so? Was it fear that the person might attack you? Or were you too busy to stop? Perhaps you didn’t have any change in your pocket? Or could it just be that you walked right past them without really giving a second thought about that person? Now let me ask you again, when was the last time you SAW a homeless person? Could it be that we are just as culpable as those people in the half full lifeboats? They were in
Overseas operations of Indian banks under scrutiny The government of India has sought details of all foreign branches and subsidiaries of governmentowned banks at a time when the European economy is not in the best of health and lenders such as State Bank of India are looking to acquire assets abroad. Sources said in a letter sent to bank chiefs on April 11, the finance ministry has sought details regarding the return on assets and capital employed, the net profit and interest margins, the cost per employee, business per employee and net profit of each staff member. In addition, all banks have been asked to submit details of performance of the joint ventures. Over the last few years, several Indian banks have decided to set foot overseas or expand their footprint to tap into the potential created by the presence of several Indian con-
glomerates abroad. As a result, banks such as Punjab National Bank and Union Bank of India, which were missing overseas, now have a presence and are planning to build on it. But governmentowned entities such as State Bank of India, Bank of Baroda and Bank of India have had large international operations for a number of years. Last week, Bloomberg reported that SBI was looking to buy assets from banks in the US and Europe. The move comes at a time when the finance ministry is keen that banks improve the efficiency of capital employed, especially when the government had pumped in over Rs 500 billion over the past few years in helping the lenders shore up their equity base and meet their expansion needs. The fund infusion came despite the government missing its fiscal deficit targets.
By Amit Patel
the midst of a terrible disaster and at such times most people don’t behave rationally or logically. What is our excuse? Its not just homeless people, how many people do we encounter in our daily lives who we could help in some small way, yet don’t? Is it because we don’t actually ‘see’ them at all? Do we live life with our eyes wide shut? The primary role of a Leader is to guide others, to show the way. Yet if we cannot open our own eyes, who can we ever open anyone else’s? Be a leader who see’s, not just one who talks. Amit Patel has over 15 years experience in the field of Personal Development and Human Resource Management. He has delivered speeches on People Management and Development throughout Europe, North America, and Asia. To contact Amit, email amitpatelmail@gmail.com
India defers aviation FDI decision
The Indian government deferred the much-awaited decision to let foreign airlines buy stake in local carriers and may take up the issue later, Civil Aviation Minister Ajit Singh said, disappointing investors and sending share prices of carriers down. Under current rules, foreign airlines are barred from buying stakes in domestic carriers, although foreign investors are allowed to hold a cumulative 49 per cent. Indian airlines, led by embattled Kingfisher Airlines, have long lobbied for the move. However, a brutal Indian market where five of the six big players lose money, as well as tough conditions globally due to high fuel prices and economic weakness, means interest is expected to be muted. Indian carriers are laden with $20 billion in debt and probably lost $2.5 billion in the fiscal year that ended in March, according to Centre for Asia Pacific Aviation, a consultancy.
Chinese, Indian companies keen to form joint ventures Many Chinese firms are in talks with Indian companies, mostly in sectors like food processing, alternative energy, auto components and machinery tools, to form joint ventures and expand their businesses, said Mohammed Saqib, secretary general of India China Economic and Cultural Council, a nonprofit organisation. A 30-member business delegation from China was
in New Delhi to explore business opportunities. The India China Economic and Cultural Council, in cooperation with the China Council for Promotion of International Trade, arranged meetings to facilitate partnerships and collaborations between companies of the two countries. Nearly 80 Indian companies participated in the business-to-business
meeting and some of them were in the process of signing joint venture agreements, said Saqib. "There is a lot of interests among the Chinese firms to come and invest in India. However, at the same time there is a lack of trust. People see everything with suspicion," Saqib said. He said the council was trying to address these issues and bridge the trust deficit.