Instructions

Read the following instructions and answer the questions.

After the discussion at a high level meeting of government officers, the criteria for issuing of import / export licence to eligible business firms for the year 2011-12 were finalized as follows. The firms must –

I. Have a Grade – ‘A’ certified unit for any products.
II. Not have any legal dispute case against it.
III. Possess minimum asset worth Rs. 40 lakhs.
IV. Submit an environment clearance certificate issued by the Pollution Control Board (PCB) of the state where the firm is located.
V. Deposit the margin money of Rs. 1 lakh.
VI. Arrange for three guarantors with their personal identity cards (IDs).

However, if the firm satisfies all the above mentioned criteria except:

a) Criteria (I), but is a traditional handloom production unit, then the case may be referred to Development Commissioner, Handloom (DCH) of the state.
b) Criteria (IV), but is a local employment provider / thread (input) supplier / cloth supplier, the case may be referred to the Director, Department of Industry of the state.
c) Criteria (V) but can deposit at least Rs. 50000, the firm will be given import licence only and the case may be referred to the Deputy Director, Department of Industry of the state.

Based on the above criteria and information provided on each of the firms in the questions below, you have to decide which course of action should be taken against each firm. Without assuming anything regarding any applicant firm, the decision should be based on the information provided.

Question 79

Mahalaxmi Weaving Center is a traditional handloom production unit. It has property worth more than Rs. 1 crore. It managed to get three guarantors with their personal IDs. No legal case is there against it. There is no problem submitting an environmental clearance, as the same is already issued to it by the State Pollution Control Board. It is also ready to deposit Rs. 1 lakh.

Solution

The given criteria are:-

I. Have a Grade - ‘A’ certified unit for any products.
II. Not have any legal dispute case against it.
III. Possess minimum asset worth Rs. 40 lakhs.
IV.Submit an environment clearance certificate issued by the Pollution Control Board (PCB) of the state where the firm is located.
V. Deposit the margin money of Rs. 1 lakh.
VI. Arrange for three guarantors with their personal identity cards (IDs).

Given that Mahalaxmi Weaving Center:-

It has property worth more than Rs. 1 crore.
It managed to get three guarantors with their personal IDs.
No legal case is there against it.
There is no problem submitting an environmental clearance, as the same is already issued to it by the State Pollution Control Board.
It is also ready to deposit Rs. 1 lakh.
Thus, it fulfills 2,3,4,5 and 6.
It is also given:-

if the firm satisfies all the above mentioned criteria except:
Criteria (I), but is a traditional handloom production unit, then the case may be referred to Development Commissioner, Handloom (DCH) of the
state.
Hence, option C is the correct answer.


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