Timtator, I suggest you read the episode with India Resources regarding taxation, The Indian Government taxed IRL more than $8 million in one year even when the company made a loss.
Its impossible for outsiders to realise how business in SE Asian countries unless you have first hand knowledge. I don't like lumping all Indians in the same basket, but until corruption is brought under control then its a systemic way of life to these people. A good friend of mine being a UPS manager recently spent some time in India introducing a training program for the Indian employees to adhere to the company policies. He actually had to bribe the employees to come to the training program on time and to sit through the presentations. Frankly, if it was me, I'd sack the lot. But this is how business is done in India.
If you want a job in a good company in India or in many SE Asian countries, you must pay for the privilege, unless you have a relative who will sponsor you.
Yes, I've been a NSL shareholder since 2014 at 008c, but as I said earlier, shareholders need to take off those rose colored glasses, everything in India is not cut and dried and currently there are too many investors who are being sucked in and they have absolutely no idea of what could eventuate.
Don't think that the problems that India Resources is experiencing is an isolated case. I'd say that IRL has a far better handle on the situation in India than NSL. India Resources has been operating there since 2007.
Obviously, I am hoping for the best, but it pays to be aware of the complications that will undoubtedly arise.
Take the South Korean company SsangYong Engineering.
Explaining difficulties in operating in
Madhya Pradesh, SsangYong Engineering and Construction Co Ltd country manager
Kyun Kwon Lee told the gathering that the company had been awarded the contract to construct bridges, roads and minor structures on a 55 km stretch in four packages in
Sagar district. "Red tape delayed the work. Till October 21, liability certificate was not issues," he said. Lee later told TOI that the company had put in around Rs 800 crore in the projects. "We are yet to get the payment of Rs 100 crore. The delay in payment is one of the major problems we face," he said. "Over the years, I am now educated on how to carry construction business in India," Lee said.
He said that process of granting permission - mining, pollution and forests - should be speedy. "The government should ensure timely payment and keep the communication channels open to address the concerns of foreign companies."
There are hundreds of companies who experience major problems like this doing business in India and in SE Asia in general.
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