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 81

Hirabhai Handlooms is a Vadodara based traditional Gujarati handloom firm keen to get an export licence. It is ready to pay the required security amount and possesses assets of Rs. 55 lakhs. Hirabhai Chamanlal is the owner of the firm as well as the President of State Handloom Association. Hence getting more than three guarantors with their IDs is not a problem. The firm possesses the environmental clearance certificate from the State Pollution Control Board after it was made mandatory for all handloom firms in the state.

Solution

The handloom firm is ready to pay the required security amount and possesses assets of Rs. 55 lakhs. Hence, we can say it fulfills condition III and V.

The firm possesses the environmental clearance certificate from the State Pollution Control Board after it was made mandatory for all handloom firms in the state.Hence, we can say the firm fulfills condition IV.

The firm can easily manage three guarantors with their personal identity cards (IDs). Hence, we can say the firm fulfills condition VI.

If the firm is short in just criteria (I),  then the case may be referred to Development Commissioner, Handloom (DCH) of the state as it operates in handloom products. However, nothing is mentioned with regard to any legal dispute against it. Hence, we can say that the licence will not be issues until we have more information regarding legal disputes against the firm. 

Therefore, option B is the correct answer. 


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