charge out / bill rate

net rate
rate recovery
gross profit
chargeability
leveraging resources
write off / write ups
metric for monitoring performance vis-a-vis budgets & timelines

Bill rate:

A flat fee , contingency fee

Hourly fee

Daily fee

Value based fee

Overhead cost: Cost which u incur to perform your business like

Accounting service

Advertising and marketing, Bank charges, cleaning charge , continuing education, office
rent,transportation expenses,fringe benefits and all

Hourly rate=Overhead costs+Annual salary+profit/Number of billable hours in 1 year

Recovery rate:

To calculate the overhead recovery rate we divide the total costs for the business -
$550,000 by the total available (billable) hours 6,564. The overhead recovery rate is
therefore = $83.79 per hour. Remember that this is just the break even hourly rate and a
margin needs to be added to this to make the selling hourly rate price.

Chargeability:

Number of hours billed to client by the total number of available hours

Net rate:
Qualities/skills of a gud consultant

Political skills

Tech skills

Skill in structuring tasks

People skills: High

Sales skills: Medium

Communication skills: High

Analytical skills: Extremely High

Ability to synthesize: High

Creative ability: High

Initiative: Medium

Work hours: Hard working

he Good Consultant is a Good Listener

he Good Consultant is a Good Facilitator

The ability to market yourselfx

know-how to run your own business efficiently

Components of a good consulting proposal

project understanding

work plan / methodology

corporate structure and history

references

project staffing plans

staff resumes

related experience of key project staff

details of manpower allocation

proposed schedule

budget

fee basis

Risk mngmnt procedures in client acceptance

managing risk through personnel assignment, professional development, and promotion policies),

pricing strategies, differential audit activities (e.g., use of tools to facilitate performing, supervising,
reviewing, documenting,

and communicating audit results),

and monitoring policies (managing risk through internal and external peer review)

Need for independence in consulting

- Unbiased pnt of view

- Different solutions available

- they have varied experience outside the client;

- they have time to study the problem;

- new ways of thinking

Activities for R&D

AS AN INDIAN COMPANY

• Joint Ventures; or

• Wholly Owned Subsidiaries

Foreign equity in such Indian companies can be up to 100% depending on the requirements of the
investor,

subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI)
policy.

Joint Venture With An Indian Partner

• Established distribution/ marketing set up of the Indian partner

• Available financial resource of the Indian partners

• Established contacts of the Indian partners which help smoothen the process of setting up of
operations

Incorporation of Company

For registration and incorporation, an application has to be filed with Registrar of Companies (ROC).

AS A FOREIGN COMPANY

Foreign Companies can set up their operations in India through

• Liaison Office/Representative Offic

• Project Office

• Branch Office

Such offices can undertake any permitted activities.

Companies have to register themselves with Registrar of Companies (ROC)

within 30 days of setting up a place of business in India.

FOREIGN DIRECT INVESTMENT (FDI) POLICY

FDI under automatic route is now allowed in all sectors, including the services sector,

except a few sectors where the existing and notified sectoral policy does not permit FDI beyond a
ceiling.

Automatic Route No prior approval is required for FDI under the Automatic Route.

Only information to the RBI within 30days of inward remittances or issue of shares to Non Residents is
required.

Government Approval

Foreign Investment proposed not covered under the ‘Automatic Route’ are considered for
Governmental Approval

on the recommendations of the Foreign Investment Promotion Board (FIPB)

Tax holidays are available in Special Economic Zones set up to make industry globally competitive.

Infrastructure Sector Projects enjoy special tax treatment/holidays.

SOURCE OF FINANCE

India has three different types of financial arrangements for financing innovations. They are: (i)
Research grants; (i) Tax incentives; and (iii) Venture capital. The former two are almost entirely
provided by various governmental agencies while the latter is now very much in the private sector

Research Grants - Under this we consider three grant or loan schemes. They are: (i) Finances from
the Technology Development Board (TDB); (ii) Techno-entrepreneurs Promotion Programme
(TePP); and (iii) the New Millennium India Technology Leadership Initiative (NMTLI).
TDP - The TDB provides financial support through: a) a loan of up to 50 per cent of the project
costs at simple interest (of 6% earlier and now lowered to 5%) with repayment in five years
after project completion (and a royalty payment during the period of loan, which has now been
dropped); b) participation in equity of companies up to 25% of paid up
capital; and c) Grants-in-aid

TePP: The programme was launched in 1998 to help realize the vast latent innovative potential of
the people. The basic objective of TePP is for individual innovators to emerge as
technopreneurs – technology oriented entrepreneurs. TePP support is provided for in all areas
except software development for which there are other avenues of support.
(NMTLI) - The objective was to catalyse innovation-centered scientific and technological
developments as a vehicle for select Indian industry to attain a global leadership position. The
state run Council of Scientific and Industrial Research (CSIR) was assigned to manage the
schemes.

TAX INCENTIVE

Direct Tax-

·100 percent write off of revenue expenditure on R&D

·100 percent write off of capital expenditure on R&D in the year the expenditure is incurred
·Weighted tax deduction at the rate of 125 percent for sponsored research programmes in
approved national laboratories, Universities and IITs, available to the sponsor
·Weighted tax deduction at the rate of 125 percent (raised to 150 percent by the Finance
Act 2000) on R&D expenditure for biotechnology companies and companies involved in
manufacturing
drugs, pharmaceuticals, electronic equipment, computers, telecommunication equipment
and chemicals, aircrafts and helicopters, automobiles including automobile components in
government-approved in-house R&D centres; expenditure on scientific research in relation
to drugs and pharmaceuticals includes expenditure incurred on clinical drug trials,
obtaining
approvals from any regulatory authority under any Central, State or Provincial Act and
filing an application for a patent under the Patents Act, 1970.
·Income tax exemption at the rate of 125 percent to donations made to approved non-
commercial scientific and industrial research organisations
·Accelerated depreciation allowance for investment on plant and machinery, made on the
basis of indigenous technology
·Customs duty exemption to public-funded R&D institutions and privately-funded scientific
and industrial research organisations, both for capital equipment and consumables needed
for R&D
·Excise duty exemption to public-funded R&D institutions and privately-funded scientific
and industrial research organisations, both for capital equipment and consumables needed
for R&D
·Excise duty waiver for three years on goods designed and developed by a wholly-owned
Indian company and patented in any two countries out of Indiathe US, Japan and any one
country of
European Union
·Exemption from customs duty on imports made for R&D projects funded by the
government in industry
·Pharmaceutical reference standards allowed to be imported duty free
·Goods specified in List-28 (comprising of analytical and specialty equipment) used in
pharmaceutical and biotechnology sector are allowed to be imported duty free provided.

Indirect Tax
·The goods are imported for R&D purposes by an importer registered with DSIR for
installation in the R&D wing of the importer within six months of the date of import on
submission of a
certificate from the jurisdictional assistant commissioner of central excise or the Deputy
commissioner of central excise to the assistant commissioner of customs at the port of
importation.
The goods imported should not be transferred or sold for a period of seven years from the
date of installation.
·The goods are imported for use in the manufacture of commodities and the total value of
goods imported does not exceed 25 percent of the FOB (free on board) value of exports
made during
the preceding financial year and installation in the factory of the importer within six
months of the date of import on submission of a certificate from the jurisdictional Assistant
Commissioner
Of Central Excise or the Deputy Commissioner of Central Excise to the Assistant
Commissioner of Customs or Deputy Commissioner of Customs at the port of importation.
·The goods imported should not be transferred or sold for a period of seven years from the
date of installation.
VENTURE CAPITAL

Venture capital is used to fun growing enterprises in exchange of an equity stake. Venture
capitalists generally do not take part in the day-to-day operations, however, they do have a
say in the company's decisions. They act as mentors and give timely advice on various
issues (such as sales, finance) to help the enterprise realize its true potential.

BANKING INSTITUTION

Banking institutions are financial institutions that act as payment agents for customers, and
indulge in borrowing and lending money.

INDIAN ANGEL NETWORK

Indian Angel Network is India's first and the largest angel group that brings together
successful entrepreneurs and CEOs who share their passion to enable more early-stage
businesses to grow in terms of scale, as well as value. By focusing on start-ups, the Network
addresses the present scenario of acute unavailability of funds to early-stage companies.
The Network believes that early-stage businesses require more than just money to succeed.
They require close mentoring and inputs on strategy, as well as execution.

LEGAL FRAMEWORK

Special Economic Zones (SEZ) are getting recognized as fast growth engines which can
boost manufacturing and create new job opportunities at an unprecedented scale. India has
taken a major policy initiate to encourage SEZs. With a view to simplify the procedures it
has enacted a Special Economic Zone Act, 2005 and notified the Rules thereunder in the
year 2006. There is a great rush to set up SEZs all over India and almost every major Indian
business house has got into the act.

Incentives offered to develop SEZs include:

Exemption from customs/excise duties for development of SEZs.

Income Tax exemption on export income for a block of 10 years in a 15 year period.
Exemption from minimum alternate tax under the Income Tax Act.
Exemption from dividend distribution tax under the Income Tax Act.
Exemption from Central Sales Tax and Service Tax.
Incentives and facilities available to persons setting up units in SEZ include:

Duty free import/domestic procurement of goods for development, operation and

maintenance of SEZ units.
100% Income Tax exemption on export income for SEZ units for first 5 years; 50% for the
next 5 years and 50% of the ploughed back export profits for next 5 years.
Exemption from minimum alternate tax under the Income Tax Act.
External commercial borrowing by SEZ units upto US $ 500 million in a year without any
maturity restriction through recognized banking channels.
Exemption from Central Sales Tax and Service Tax.
Single window clearance for Central and State level approvals.
Exemption from State sales tax and other levies as extended by the respective State
Governments.
FDI up to 100% is allowed through the automatic route for all manufacturing activities in
SEZs, except for the following: (i) arms and ammunition, explosives and allied items of
defence equipment, defence aircraft and warships (ii) atomic substances (iii) narcotics and
psychotropic substances and hazardous chemicals (iv) distillation or brewing of alcoholic
drinks (v) cigarettes/cigars and manufactured tobacco substitutes (vi) Sectoral norm as
notified by Government shall apply to foreign investment in services.