Fake job offers being reported is on a constant rise. With no practical workplaces, and employees interacting with customers face-to-face without supervision, on-demand economy runs with a risk of reputational risks of hiring fraud, unethical candidates with possible criminal background, fake identity or mal-intentions.
Job seekers need to be more aware and cautious. The world is connected now and a lot of information is available online with forums, news and company details. One simple check is that no genuine recruiter would ask you to pay for hiring you. If there’s any discussion of paying in advance, it’s most likely a fraud. Second, research about the company online – its office locations, its hiring & interview process, its empanelled recruiting partners etc. Most companies have their process mentioned on their website. In case of any doubt, a candidate can get in touch with the company through contacts mentioned on the website.
Big companies are used by fake job racketeers to allure their prey because there’s a sense of aspiration attached with working for such companies. Plus sectors like IT, ITES hire in large volumes and various information becomes accessible to manipulate. While it’s a huge hit to careers and morale of job seekers along with financial loss, it is likely damaging the reputation of these companies. Many companies have become wary of these trends but many are still to take strict actions. Companies can be transparent about their job openings, hiring process, recruitment calendar, empanelled partners etc. They must look out for fake websites and social media handles in their names. Today, technology can resolve many authentication concerns like digitally secure offer letters.
Many job scams like many other crimes go unreported due to lack of proper channels and tedious law & judiciary process. But this is changing as we see more than 3700 incidents being reported till Oct this year in comparison to 1800 same time last year.
It’s important to report and highlight these scams to make people realize the extent of this problem. News about these frauds, candidates’ stories and experiences could be learning for many seekers. Law enforcement is another area to ensure trials and strict punishments for fraudsters. At a macro level, where the education system needs major improvements, such stories can build awareness and sensitize job seekers to be more careful, savvy and diligent while seeking jobs.
Data consumption has already increased manifold during the global pandemic anyway. As much data is being generated, its consumption is also being done accordingly. Mobile phones, social media, apps, payment wallets are generating so much data that the need of experts is being felt to manage it.
According to a study, the demand for data scientists around the world is estimated to increase by about 28 per cent. At the same time, India is second after the US in terms of making the most appointments in the field of data science or analytics.
Actually, data scientists study data. By analyzing the data, they help companies or institutions plan for the future. Under this, they first collect data. Then store them and then sort them into different categories i.e. packaging of data. Finally, data delivery takes place. Simply to say that data scientists know how to visualize data better. Apart from all this, they also help in finding the lost data, removing the chaos and avoiding other flaws.
Important skills with academics
To become a data scientist, a candidate must have an M.Tech or MS degree in Maths, Statistics, Computer Science, Engineering, Applied Science. Under Data Science people have to study Maths, Algorithm Techniques, Statistics, Machine Learning and Programming languages like Python, Hive, SQL, R, etc. which requires a lot of hard work, time and patience. The data scientist should also have a good understanding of the business and strong communication skills. Also, it is good to gather complete information about any program or course before selecting it.
Course
Many top institutes in the country offer courses related to it. For example, the Post Graduate Diploma in Business Analytics (Data Science) program jointly run by IIM Calcutta, ISI Calcutta and IIT Kharagpur is quite popular. Apart from this, you can also do a course from IIIT Bengaluru. If you want to learn online, you can explore the platforms of Simplilearn, Jigsaw Academy, Edureka, Learnbay, etc. According to experts, the maths background is beneficial for making a career in data science.
The possibilities
By 2026, it is expected to be around 11 million new jobs coming in this sector. Talking about India, the demand for data scientists in 2018 was seen to increase by 4.17 per cent, which is likely to continue in the coming time. Youngsters aspiring to pursue a career in this field can work on the profiles of data engineers, data administrators, statisticians, data and analytics managers, etc. There will be good demand in sectors like agriculture, healthcare, aviation, cybersecurity etc.
Hiring will increase even after COVID 19
Data scientists play a key role in building business analytics, data products, and software platforms. Today, 2.5 quintillion bytes of data is being created in the world every day, which will require skilled professionals to manage. There will be tremendous opportunities for them. Especially in Big Data Analytics and IT industry, they will have special demand.
According to a global study, after COVID 19, millions of data science professionals will be needed in the US alone. Global companies will hire a large number of data scientists to manage their businesses.
A similar situation will prevail in India. For this, youth can enrol in postgraduate courses offered in different universities of the country or can also take online courses from Coursera, Metis, MIT (EDX), Harvard or Udemy. But doing a full course would be better. If you can work with machine learning in deep learning frameworks like Neural Networks, TensorFlow, Keras, PyTorch, and have working knowledge of Hadoop and Spark, then there can be golden opportunities to move forward in the industry. It is also important for the data scientist to have critical thinking.
Women participation in equity markets has surged during the pandemic and experts believe the growing need to share household expenses with rampant pay cuts and lay-offs has brought them to trading.Additionally,women are looking for alternatives to the decreasing bank’s fixed deposit (FD) rates, they added.Interestingly, most of such women are first time investors and a large number of them are housewives.”As retail participation has grown during the lockdown, this has been true for women as well. In line with the overall investors population, women are looking for alternatives to decreasing FD rates,” said Shankar Vailaya – Director, Sharekhan by BNP Paribas.”Lockdown has just been an accelerator allowing women to deepen their capital market knowledge via digital solutions,”Vailaya added.Online brokerage house Upstox said it has witnessed a growth of 32 per cent in account opening by women from April to June 2020, compared to the preceding three months.Of these, 70 percent of women are first time investors. Additionally, more than 35 per cent of the brokerage house’s women customers are housewives.According to Upstox, around 74 per cent of female customers are from Tier 2 and Tier 3 cities like Visakhapatnam, Jaipur, Surat, Ranga Reddy, Nagpur, Nashik, Guntur, among others.Out of the overall number of active female customers, 55 per cent are traders, whereas 45 per cent are investors (those that invest in equity delivery).It has seen a jump in active female customers by 53 per cent from April to June 2020, as compared to preceding three months. Nikhil Kamath, who co-founded Zerodha and True Beacon, said they have added 11 lakh clients since March 1, 2020. Of these, women clients are 1.8 lakh. He further said the average age of such women is 33 years.Tejas Khoday, co-founder and CEO, of FYERS, said in the last four months the stock broking fintech startup acquired over 20,000 new customers, of which 10 per cent were women traders.But, the overall traffic online includes 15 20 per cent women traders. Moreover, they are more inclined to invest than trade.In terms of expectations, Khoday said women want high profits in a very short period of time without too many entry/exits. But this could also be because most of them are first-time investors.
There are many people who talks about it , and few screams and fight to end it…………but since ages, it’s not being possible to make a difference, and still have not got independence from it’s foul smell, where someone dwelling in it , without sense. But, should we live in this rut forever ?…And to accept ourselves as incapable of destroying it, and to live like a looser.
I have a one brilliant rule, if it comes into play that undoubtedly changes the fate of the country. Before i reveal it, let us know why this rule works besides many measures being taken were failing since decades. The main feasible condition for corruption, is lack of surveillance and awareness among people,and how it greatly damages our standard of living. So,creating awareness among all the people might sometimes work, but most of the time it rewards us with great disappointment. because, India has biggest population, it’s hard to make all of us to bring on to one platform with one voice.
But, there was no dearth of solution, if we think and the first said idea is…………. This idea works with collection of students, professors, university bodies, govt anti corruption and adminstrative bodies , police. You may wonder that how, could you connect students, professors with police? The bitter fact is, about 90% of indian passouts graduates are unskilled according to the several esteemed surveys. The main reason for it is, not having a platform to access practical knowledge, we have severe shortage of internship opportunities and real time project works. This problem can also be indirectly solved by our main idea.
The govt should make project works mandatory and give them more importance in their course, some may refrain with this idea…but if we couldn’t able to perform on projects itself, how can we able to sustain after getting to global market; initially it might be hard, but with support of our peer and lecturers we can excel gradually. Now, we all should be assigned project works by our colleges in collaboration with national education body (now MHRD), only on all governmental assets and organisations….here comes a game changing shot. But, how is it possible?
The government must allow all the students to study governmental organisations, properties, and projects build by them.(let’s say a dam, hospital etc…). This helps to make an assessment for the quality of work being done in various govt fields and organisations.The reports submitted by students can be used by anti corruption agencies and help them to understand the situation at very ground level. As it’s not possible for anti corruption agencies to keep an eye over every inch of the whole country, they can use this student community as a strongest trustworthy network as they don’t provide false reports, if in case; the professor and the whole college who guided him will be felt guilt, and leads to their lack of reputation in society. so, this locking system can help students ro not provide false reports.
All the students must be allotted some projects on live aspects(like dams, hospitals ,industries built and being run by govt) in their respective fields, and we have to start analyzing their maintenance and prepare and submit the report of it’s quality and working efficiency. Here itself, we get an opportunity to dig up the flaws went up and to make a change by preparing efficient reports of the atrocities made and corruption that underwent.
For say, i’m a student of civil engineering, got a project to understand about kaleshwaram dam and have to submit report on it. I started by when it has built, and how much cost it took, what are the materials used in it, what are the technologies use in it, why does the walls of the dam is being getting cracks just after 5 years of its inauguration, what is the reason for recent fire accident……..when i submit the detail report to the college, I am gonna get my marks The above said will be the work of every student in every field, not only engineering also health,law, agriculture,finance and every field. Instead the anti corruption bureau working on intensive ground level, they can collect all the project reports form all colleges and will be easier for them to take action, by using the information. As, it is a real time project, the professor of individual group must take care of no flaws and genuinity of information, as it will be a major source for higher govt authorities to take action. In simple, students has to set on to study the past govt projects and organisations; and the detailed project reports and student community acts as a strong surveillance framework and it bring out the corruptions of the past as well as prevents the corruptions of the future. This idea, if it honed by the bright minds of our country, it can surely be an influential act.
Engineering is being one of the most popular courses since few decades, especially in India. But, the idea of exactly what a engineer is ?.. lacking among most of us. That’s ok, not a problem…..because our’s is a nation, where most of the people recently got being aware about education. So, it takes sometime to build strong educational infrastructure and awareness among us. This process, can be done faster only when all of us actively take up initiatives on our own, which indirectly affects the whole nation’s growth.
Internet been a great game changer, without which the technology evolution would be infinitesimally small. Do you know, India is providing internet at very cheap price than any other countries in the world. So,we are really lucky to have easy access to such powerful resource. So, i will get started to atleast introduce you with one interesting thing and you will start using it, when necessary.
Engineering definitely demands creativity and also knowledge. There are humongous amount of resources available, but sometimes only few delivers the best content and meets our requirements. I just want to give you a few names of websites to find about your academics. But, engineers should also have sound knowledge of basics, mostly of class 11 and class 12, through only helps us to understand further concepts. Toppr is one the best website provides you with free content,in a creative way. Embibe, will be a best source for solving questions and provide you with analytical reports and schedules. Vedantu,byjus,unacademy,askiitians,brilliant.org are the other few that provides various articles on individual topics.
Now, to getting onto the engineering academics, there are no specific websites that fulfills all of your interest, because various colleges design curriculum in their own way. But, The knowledge we learn always gives us an extra edge over others. It is always necessary to follow up the trends of education and industrial requirements. so, we have to follow some premium resources, and for us it’s better to refer the websites and social pages of iits,nits and government organisations. They always be helpful to measure our position nationally.
khan academy, edx, coursera, futurelearn, cisco will be some best resources to learn courses for free, but can obtain certificate by paying some money after completion of your course. Nptel is one of the best resource available to all, and also can value your learning by getting certificate at very reasonable pay, after giving a test.
here comes up with good youtube channels…iisc banglore, 3blue1brown,crashcourse, Neso academy, Tutorial point, mathsindepth, allaboutelectronics, letslearn,math-u- see, nptel, gradeup, seeker, IMA video, quanta magazine are few channels.
And there were few channels that able to improve your lifestyle, and are mike boyd, wall street journal, quint, mind your decisions, mind valley, momspresso, tedx, fightthenewdrug,cs dojo, kodegod,timelabpro, fearless soul, phlearn and many more.
There is always many more to explore in your own style, but every resource above directs towards various perspectives. pdfdrive, internet archive, z-library for books and for basic programming w3schools, tutorialpoint,javatpoint,sololearn, programiz, begineersbook.com and others.
The primary distinction between public-sector and private-sector jobs is that public-sector jobs are commonly within a government firm and are controlled by the Government or various Government bodies, whereas private-sector jobs are those where people who are working for non-government offices, controlled by Individuals or private companies. People are more inclined towards Government sector jobs, and the faith in the private sector’s jobs is also developing rapidly. The modern generation wants to accomplish a job post in private enterprises and it is because of wage increment approvals, top hierarchy, and additional benefits.
There are many advantages of working in government agencies such as a stable job with beneficial packages with the best retirement privileges (Pension). But it is slightly difficult to bag a government job, mainly because it is a necessity to crack entrance examination within the time frame allotted and there are certain age limitations too. Even though government jobs are known for less salary, the starting payroll of a bank clerk is 20k per month, and higher designation entry-level monthly salaries can be as high as INR 70k to 80k and above. Superior officials experience the generous advantages of monthly pays of well over Rs.2.0 lakhs. Compared to private jobs, government employees have less work pressure and experience plays an important role in government administration with promotions. Disadvantages of government jobs are the misuse of power, political interference, the financial burdens, etc. which is why normally people avoid getting into the government sector. Certain Government Sectors Jobs are armed forces, Civil Service, Health Care, etc.
In the private sector, it links performance and growth. The better you work, the greater will be your growth. If you are dedicated and have the talents to work up to the next level, you will be promoted to the next level. Employment in the private sector provides more growth opportunities and is more flexible in allowing employees to move further into the engaging roles within the company,with which they can lead a lavish lifestyle. But how much ever-interesting it sounds there are a lot of obstacles in working in private companies such as instability of job, like in case of failure to gain scheme funding, recession, low business performance all can act against an employee. If a private-sector organization is suffering loss, then your work may be at stake. That means there is zero job security. Certain private sector jobs are Law Firms, Newspapers, Hospitality, and magazines, etc. If an individual is not interested in joining the public or private sector then the person can set up their own business which can be difficult to start but can go smoothly if handled well which depends on the individual.
But in this pandemic Government jobs have proven to be very useful because many people who were employed in the private sector have lost their jobs, which can be very stressful in the difficult phase of time where expenditure is more. It depends on a person to make the right choice according to their talent and capacity.
As you have seen above, let us explore the idea of startup in simple sense. Startup is simply coming up with a solution for earlier unsolved problems, or with a more enhanced solution than that of the solutions, which already discovered.
startups are the only way to bring up equality among all citizens, by providing equal opportunity for all of us to execute our own plans. But,I wonder!, how is it possible for all of us to make startup ? and How do they help in bringing up equality?. Cool…let’s us get into the thick jungle,slowly.
It’s really hard to come up with a whole new solution, but we definitely inherit the talent of adding colors to the existing product in our own style. This little glimpse added by us, keeps us apart from the whole crowd and paves a way full of opportunities. This is the ideology, which created a unique brand for desi chai, mobile dosa van, desi handicrafts and many more have emerged into promising brands. One thing in common is adding the local swag to every product and enriching it with our culture creates more opportunities for common man to sustain in this corporate world. There is a great necessity for all of us to promote our very businesses to the next level by analysing trends in the market and making appropriate changes for our products.
If startups have not emerged, it leads to dearth of job opportunities, in return leaves huge amount of youth unemployed. You know better, what are the problems to be faced being an unemployed ?. There is an other alarming effect of not coming up with startups. All the wealth will be not distributed uniformly and the flow of money ceases. The best example of this is one man being the fame since decades, the ambani being one of the master businessman and had occupied space in almost every area.The money directly or indirectly from a tiny village to metro city is being transferred to his account. In return, who knows the savings of ambani in banks and as well as the unliquified money in the form of valuable assets. The money from the whole nation reached heavily to one place. To disburse this money equally, it is necessary to come up with startups, but not merely with business. Because, business always cannot reward profits, but we have high opportunities to turn every startup into successful business as it has one unique feature which always helps us to be on top.
The above said format of startups are not very risky neither requires great outstanding intelligence. But, there is always necessary for bright minds to use their knowledge to discover whole new solutions for the problems not yet resolved and being haunting us since ages. There was no great amount of awareness among us regarding research, which was one of the vital base of strong startup. We are just being dwelled in struggle, striving to understand the academics, it is because of poor quality of teaching and educational practices. So, it must be our responsibility to take up new pathways by understanding the whole scenario.
we could able to create, only when we able to learn and apply what we learnt. In the process of pursuing studies by real life applications, enables us to find the gaps and new thoughts bloom in our minds to bridge that gaps. That is what innovation is..and with right vision and the ability to take it into the market makes a great startup…….however, so much glad , that most of the youth are turning towards this naya trend called startup swag…and turning their dreams into reality.
If you are someone who admires chemistry more than just a subject & aspires to build your future in it. This is your place. Doesn’t matter if you have just passed out your high-school or seeking change in career. If you are dedicated to the subject & willing to diligently work for it. Then it has some wonders in store for you.
So mentioned below are the top 5 career options you can seek in chemistry after completion of degrees at certain levels.
A] Following are specifically for the one’s who have or are willing to pursue MSc as a degree in chemistry :
1 ] Teaching field
Now if you are someone who is quite fascinated with the life of teachers or professors as I am. Then this is all you need to know :
Post qualifying NET + Ph.D., you can apply for the post of assistant professor in various govt. colleges all over India. And if not then you might try for SET for the same, but the only limitation is you can’t apply outside that particular state.
Next is you can think of clearing the B. Ed exam if you wish to be a teacher at +2 colleges.
Clear the GATE entrance examination after MSc/Btech to teach in engineering colleges.
All these shall make you earn a handsome salary additionally offering some good peace of mind.
2 ] Research
If you want to build your career in Research & Development then you must clear the CSIR – NET exam & apply for a Ph.D. as a JRF scholar in a govt. college with a good amount of stipend in hand.
3 ] Industry
With a valid GATE score, you can apply in PSUs like ONGC, IOCL, HPCL, NTPC for jobs at various posts.
Without any entrance exam, you may apply at private industries like paint, agriculture, paper, sanitation, plastic, cement, textile & forensics as a QC trainee.
4 ] Government Jobs
One can appear for various govt. entrances to apply in various govt posts.
B] Now if you are someone who has completed Btech in chemical engineering then refer below-mentioned data :
1 ] Research
After completing a Ph.D. in chemical engineering & apply for research & scientists in Govt Organizations or MNCs.
2 ] Designing Industries
This field involves designing a process & it’s related equipment, machinery, or chemical plants too. They provide a starting package of 9 LPA plus providing a good foreign exposure.
3 ] Production Industries
Just like the above-mentioned companies (in A3) you can apply for them with just merely a graduation degree in chemical engineering.
4 ] Project Engineer
A chemical engineer can also work as a project engineer in the design companies. The role of project engineering is all about maintaining coordination between clients, all engineering departments for the smooth execution of the project.
WE ALL ARE IN LIGHT OF THE STATEMENTS THAT ARE HIGHLIGHTING IN THE MEDIA ABOUT ECONOMIC SLOWDOWN AND INDIA’s GDP . IT IS ALEARDY PREDICTED INDIA ‘s ECONOMIC GROWTH IS GOING TO FACE MORE DECLININGS , AS SAID BY THE GREAT SCHOLARS , HOW MUCH OUR COUNTRY’s GDP WILL DOWN AND MAY STRIKE NEGLEGIBLE.
INDIA RISKS STAGNATION IF THE GDP DOES N’T GROW ANNUALLY THAT TOO AT THE RATE OF 8% PER ANNUM . THE GROWTH HAS HAVE TO OCCUR AT A GREAT PACE BUT NOT AT THE SLOW PACE .
IF OUR GROWTH RATE TOUCHES 8% PER ANNUM FOR THREE YEARS CONSECUTIVELY THEN INDIA CAN SAVE ITSELF FROM MANY CHALLENGING CONSEQUENCES .
IT HAS BEEN HIGH TIME , NOW GOVERNMENT SHOULD ATLEAST FOCUS ON THE SOCIO-ECONOMIC CHANGES AND NOT ON POLITICAL ONES. WE ARE FACING UNEMPLOYMENT AND POVERTY IN A STRETCH . THE GOVERNMENT HAS IMPLEMENTED ATMA NIRBHAR BHARAT BUT I THINK IT SHOULD BE IMPLEMENTED EARLIER , THEN , WE WOULD HAVE NOT FACED THIS SITUATION WHAT WE ARE FACING NOW . YES ! SELF RELIANT IS THE KEY BUT WE HAVE DELAYED ITS IMPLEMENTATION . AND WE ARE INCURRING THE COST OF OUR DELAY IN COVID-19 IN THE FORM OF WEAK HEALTH INFRASTRUCTURE , POVERTY AND UNEMPLOYMENT . THEY ARE STANDING AS ICEBERGS IN OUR PATH , JUST BECAUSE OF OUR INEFFICIENT DECISION MAKING.
INDIA IS NEED OF THE GROWTH OF 8% TO 8.5% ANNUALLY TO CREATE THE OPPORTUNITIES AFTER COVID-19 AS THERE IS A RISK OF THE STAGNATION OF ECONOMIC GROWTH , INCOME AND GOOD QUALITY LIFE FOR A DECADE , WHICH IS A HUGE LOSS ! .
THERE IS NEED TO FABRICATE ALL THE REFORMS AND SCHEMES DESIGNED , A GOOD IMPLEMENTATION OF ALL IS MANDATORY TO CATCH THE ROPE OF THE GOOD ECONOMIC GROWTH.
THE NEXT TWELVE TO EIGHTEEN MONTHS ARE VERY CRUCIAL FOR US AS IT HAS BECOME A LIMMITED PERIOD OFFER FOR A GROWTH TO OCCUR AND THEESE ARE THE MONTHS .
IF WANTING TO INCREASE THE PRODUCTIVITY , CREATING EMPLOYMENT OPPORTUNITIES FOR THE PEOPLE , MINIMISING POVERTY BECAUSE POVERTY CAN NEVER BE FINISHED , IT JUST CAN BE MINIMISED , LIVING GOOD QUALITY OF LIFE , DEVOLOPMENT , GROWTH , SOCIETAL OBJECTIVES THEN , YOU HAVE TO HAVE ……
THE EMOTION FOR THE SOCIETY AND SOCIO-ECONOMIC OBJECTIVES !!
Students are very worried about their careers as all admission procedures have been delayed due to the Coronavirus pandemic. Many have expressed concerns over the delay and cancellation of exams for they might lose an academic year. Final year students are suffering the worst. Many students of intermediate years in have started their classes in online mode for now.
Delhi University has scheduled its entrance tests for admission to 10 undergraduate and 86 masters and MPhil/PhD programmes from the 6th of September. The exams will be computer based and will be conducted by the National Testing Agency. They will take place from September 6th to 11th in three slots from 8 am. There will be 24 centers across the country. 1.47 lakh students have applied to the masters courses, and 21,699 students have applied for MPhil and PhD programmes. The undergraduate course entrance tests will be held for 3 management courses, journalism, education and a few specialised disciplines.
Students are also worried about sitting for exams in this condition. There is the issue of social distancing and also wearing a mask, gloves and shield the entire time while appearing for an exam is quite taxing. The centres are located in specific cities so there is also an issue about travel restrictions and hotel accomodation. Some exam dates have also coincided with others as DU’s joint admission test for management courses and Common Law Admission Test (CLAT) is supposed to take place on the same day that is September 7. There is another problem about the masters aspirants as most of them have still not finished with their final year exams and yet to receive the degree. Students are waiting for the University to make an announcement and provide some clarification regarding the issue. JNUSU president Aishee Ghosh has expressed concern over the issue of students who are badly affected by floods and the pandemic. Many of them might not be in a position to appear for these exams in a specific centre.
Jamia Milia Islamia has extended the dates of application for admission. The last date to fill the online application form has been extended to September 14. Students seeking admissions in any undergraduate course at the university can apply at the official website of the university. The applications for admissions under the sports category will end on September 16. This is applicable for students who play sports at the national, state, regional or university levels. Under the sports quota, students will be enrolled in both undergraduate and postgraduate courses. Sports including boxing, badminton, athletics, cricket, hockey, shooting, football, tennis, table tennis, volleyball, and wrestling will be accepted for the courses.
The Jamia Milia Islamia University has been ranked first among the top central universities across India. Over 21,000 students are enrolled across 270 programmes in Jamia. This year, it has introduced several new courses including two MTech programmes, two MSc, and one MLib course. Among the undergraduate courses there are – BSc aeronautics, four BVov courses, diploma in hospitality management, and three postgraduate diploma courses including entrepreneurship, innovation and design thinking.
New sessions across colleges and universities have all been postponed due to the Covid 19 pandemic. The application deadline has been extended for almost all courses including free UPSC tutoring classes that are conducted to support candidates belonging to minorities, SC, ST community, and women as well as NRI admissions.
Volunteering is a voluntary act of an individual of doing some work for the society as community service. It may include different forms of work. Some volunteers are specially trained in a particular field while some offer to help and join hands for a good cause freely. Volunteering has different sectors like medical, disaster management, education and upliftment of community. There are several NGOs and organisations which offer volunteering opportunities.
It can help you to make new friends, advance your career, and feel better. Taking some time out of our busy schedules and finding time for volunteering can be difficult for some of us. But you can start small for the sake of trying it out. Volunteering lets you help and reach out to people from different backgrounds and create social change in your own little way. It provides vital help to individuals and gives you a chance to make lives better. Surely it makes people’s lives better but it gives you greater benefits. Give a little time to volunteering and you will get a lot in return!
It helps you feel happier and healthier. Once you start volunteering, you will meet a lot of new people from different communities. Working with underprivileged communities makes us more aware of our surroundings and feel grateful about our own lives. Also, when you start doing something new it gives you a fresh start and brightens your mood. Most of us love doing new things. Volunteering will also help you spend some quality time outside of work. It will bring both fun and fulfillment to your life. It will help you combat better with issues of mental health like depression and anxiety. It will also improve your mood and give you immense joy. Seeing the smile on the face of a child will surely brighten your day.
You will meet a lot of new people. Your fellow volunteers will either be from similar fields as yours, which will definitely be a positive side or they will be from completely different walks of life giving you a chance to know about a lot of new things. If you are a person who struggles with making new friends, it is a great opportunity for you to start new friendships. Once you start working as a team with others, you will share your ideas and share responsibilities for carrying out a task. While working and planning together it is most likely that you will become great friends. This will also make you a more social person and increase your communication skills. Volunteering helps you to network with a lot of people. Especially if your career path values societal issues, it will be really helpful for you to meet important people and make connections.
Lastly it will help you enhance your career prospects. Almost all companies or educational institutions value a volunteering experience. They will be glad to know that you have been a part of something so meaningful. Volunteering increases your chances of getting selected and helps you improve your resume. It will also give you experience of working with a team and make you a more empathetic and responsible person.
LLP is a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.
The Limited Liability Partnership Act, 2008(LLP Act) does not provide an exhaustive definition. Sub-section (n) of section 2 of the Act states that “limited liability partnership” means a partnership formed and registered under this Act.
NATURE AND CHARACTERISTICS OF LLP
1. The LLP is a body corporate having separate entity from its partners and perpetual succession.
2. An LLP in India is governed by the Limited Liability Partnership Act, 2008 and, therefore, the provisions of Indian Partnership Act, 1932 are not applicable to it.
3. Every Limited Liability Partnership shall use the words “Limited Liability Partnership” or its acronym “LLP” as the last words of its name.
4. An LLP is a result of an agreement between the partners, and the mutual rights and duties of partners of an LLP are determined by the said agreement subject to the provisions of LLP Act, 2008.
5. The LLP being a separate legal entity is liable for all its assets, with the liability of the partners limited only to the amount of contributed by them just like a company. No partner will be individually liable for any wrongful acts of other partners. However if the LLP was formed for the purpose of defrauding creditors or for any fraudulent purpose, then the liability of the partners who had the knowledge will be unlimited.
6. There must be at least two designated partners in every LLP of whom one shall be resident in India.
7. Every LLP shall maintain annual accounts to show its true state of affairs. It must prepare a statement of accounts and solvency every year and file with the Registrar.
8. The Central Government may, whenever it thinks fit, investigate into the affairs of an LLP by appointing a competent Inspector.
9. A firm, private company or an unlisted public company have the option to convert itself into LLP as per the provisions of the Act. Upon such conversion, the Registrar will issue a certificate to that effect. After issuance of a certificate of registration, all the property of the firm or the company, all assets, rights, obligations relating to the company shall be vested in the LLP so formed, and the firm or the company stands dissolved.
10. The name of the firm or the company is then removed from the Registrar of Firms or Registrar of Companies, as the case may be. Like the company, an LLP can be wound up either voluntary or by the Tribunal established under the Companies Act, 2013
11. The LLP Act 2008 also enables the Central Government to apply the provisions of the Companies Act whenever it thinks appropriate.
ADVANTAGES OF LLP
Easy to form: Forming an LLP is an easy process. It is less complicated and time consuming unlike the process of formation of a company.
2. Liability: The partners of the LLP is having limited liability which means partners are not liable to pay the debts of the company from their personal assets. No partner is responsible for any other partner’s misconduct.
3. Perpetual succession: The life of the Limited Liability Partnership is not affected by death, retirement or insolvency of the partner. The LLP will get wound up only as per provisions of the LLP Act.
4. Management of the company: An LLP has partners, who own and manage the business. This is different from a private limited company, whose directors may be different from shareholders.
5. Easy transferability of ownership: There is no restriction upon joining and leaving the LLP. It is easy to admit as a partner and to leave the firm or to easily transfer the ownership to others.
6. Taxation: an LLP is not subject to Dividend Distribution Tax. (DDT). Distributed profits in the hands of the partners is not taxable. For Income Tax purposes, LLP is treated on par with partnership firms.
7. No compulsory audit required: Every business has to appoint an auditor for checking the internal management of the company and its accounts. However, in the case of LLP, there is no mandatory audit required. The audit is required only in those cases where the turnover of the company exceeds Rs 40 lakhs and where the contribution exceeds Rs 25 lakhs.
8. Fewer compliance requirements: An LLP is much easier and cheaper to run than a private limited company as there are just three compliances per year. On the other hand, a private limited company has a lot of compliances to fulfil and has to compulsorily conduct an audit of its books of accounts.
9. Flexible agreement: The partners are free to draft the agreement as they please, with regard to their rights and duties.
10. Easy to wind-up: Not only is it easy to start, it is also easier to wind-up an LLP, as compared to a private limited company.
DISADVANTAGES OF LLP
Restricted Access to Capital Markets: LLPs are small form of business and cannot get its shares listed in any stock exchange through initial public offerings. With this restriction, limited liability partnerships may find it difficult to attract outside investors to buy the shares.
2. Rights of partners: An LLP can be structured in such a way that one partner has more rights than another. So it isn’t a one vote per share system. So, some lesser partners may feel compromised if higher shareholders choose to move the business in a direction that affects their interests.
3. Public Disclosure of LLP Information: A LLP must file its Annual Returns, Financial Statements etc to the Registrar of LLPs annually. Which become public document once filed with Registrar of LLPs and may be inspected by general public including competitors by paying some fees to the Registrar of LLPs. Information disclosure can make an entity competitively disadvantaged. Competitors – especially those not required to disclose any documents – can access that information and use it to improve their own business.
4. Limitations in Formation of LLP: LLP cannot be formed by a single person. A non – resident Indian and a Foreign National willing to form a LLP in India must have one person resident in India to act as Designated Partner. Further FDI in LLP is allowed only through government route only and that too in those sectors only where 100% FDI is allowed under automatic route under the FDI Policy. This limitation makes LLP an unattractive form of business.
5. Offenses and penalties: Limited Liability Partnership Act, 2008 provides that for non-compliance on procedural matters such as delay in filing of e-forms, one has to pay default fee for every day for which the default continues. Such default fee would be payable at the rate of rupee one hundred per day after the expiry of the date of filing up to a period of three hundred days. The offense can result in either:-
(i)through payment of fine or
(ii) through payment of fine as well as imprisonment of the offender.
6. Exit Options are Not Easy for LLPs in default of Filings: A LLP who has defaulted in filings its statement of accounts and annual return with the Registrar of LLPs, willing to shut down its operations and wind up, will have to make its default good first by filing necessary e-forms with late filing fee. This provision is making LLP an unattractive form of business as in India there are many businesses that are ignorant about compliances.
7. Limitation in External Commercial Borrowings (ECB): Limited Liability Partnerships are not allowed to raise ECB. Therefore, a LLP cannot avail commercial loans from its foreign partners, FIIs, Foreign Banks, and any financial institution located outside India.
PROCEDURE FOR AN INCORPORATION OF LLP
The incorporation document shall be filed in Form FiLLiP (Form for incorporation of Limited Liability Partnership) with the Registrar having jurisdiction over the State in which the registered office of the limited liability partnership is to be situated.
If an individual required to be appointed as designated partner does not have a DPIN or DIN,application for allotment of DPIN shall be made in Form FiLLiP The application for allotment of DPIN shall not be made by more than two individuals in Form FiLLiP: an application for reservation of name may be made through Form FiLLiP: Provided also that where an applicant had applied for reservation of name under rule 18 in Form RUN-LLP (Reserve Unique Name-Limited Liability Partnership) and which has been approved, he may fill the reserved name as the proposed name of limited liability partnership.
THE SUMMARIES PROCEDURE FOR
Incorporation of LLP is as under:
Procure DSC and DIN:
Procure DSC and DIN for the individuals acting as Designated Partners of LLP. A person, who already has a DIN, is not require to obtain any new DIN. Existing DIN to be used for Designated Partner (However, DIN should have all latest details such as resident of India, name, address etc.). Any person proposed to become the Designated Partner in a new LLP shall have to make an application through eform FiLLiP. An application for allotment of DIN up to two Designated Partners, shall be filed in an e-form FILLiP with the Registrar, in case of proposed Designated Partners not having approved DIN.
2. Name reservation: The first step in incorporation of an LLP is reservation of name of the proposed LLP. There are two ways of reserving name of the proposed LLP.
i. File an application under LLP-RUN for ascertaining availability and reservation of the name of an LLP.
ii. Name can be proposed in eform FiLLiP, an application for incorporation of LLP.
3. Incorporate LLP: After reserving a name under LLP-RUN, applicant should file eform FiLLiP for incorporating a new LLP. eform FiLLiP contains the details of LLP proposed to be incorporated, Partners’/ Designated Partners’ details and consent of the Partner/ Designated Partners to act as Partners/ Designated Partners. On approval of the form, the RoC will issue the certificate of incorporation.
Where the Registrar, on examining Form FiLLiP, finds that it is necessary to call for further information or finds such application or document to be defective or incomplete in any respect, he shall give intimation to the applicant to remove the defects and re-submit the e-form within fifteen days from the date of such intimation given by the Registrar.
After re-submission of the document, if the Registrar still finds that the document is defective or incomplete in any respect, he shall give one more opportunity of fifteen days time to remove such defects or deficiencies: Provided that the total period for re-submission of documents shall not exceed thirty days.
Documents to be attached with form FiLLiP:
i. Consent of the partners.
ii. In case of the partners who are body corporates, certified true copy of the board resolution is passed by such body corporate partners.
iii. Proof of address of registered office of LLP.
iv. Subscribers’ sheet including consent.
v. Detail of LLP(s) and/ or company(s) in which partner/ designated partner is a director/ partner.
vi. Copy of approval obtained from any sectoral regulator/in-principle approval.
vii. Identity and address proof of individuals acting as Partner and/or Designated Partner.
viii. List of main objects of an LLP.
ix. If the name proposed is liked to registered trademark, NoC from the trade mark owner.
x. NOC of foreign body corporate for usage of name (In case of foreign entities intending to incorporate LLPs in India).
The companies can be divided into different types based on parameters such as Size of company, a number of its members, Control of ownership, Liability to shareholders, need of capital from public & On the basis of the manner in which capital can be accessed. A company is popularly referred as a group of person coming together with resources in terms of capital, manpower, and skill for the common objective of making profits.
In old companies Act 1956 a company should have at least 2 persons as its member or shareholder. However, the companies Act 2013 introduced a new concept of One Person Company in India wherein only one Indian person who is a citizen of India can register a private limited company with some limitation, the different types of companies can be classified based on different parameters.
CLASSIFICATION OF THE COMPANIES
1. Classification on the basis of Incorporation: Companies may be Incorporated under the following categories:
(a) Statutory Companies: These are constituted by a special Act of Parliament or State Legislature. The provisions of the Companies Act, 2013 do not apply to them. Examples of these types of companies are Reserve Bank of India, Life Insurance Corporation of India, etc.
(b) Registered Companies: The companies which are incorporated under the Companies Act, 2013 or under any previous company law and registered with the Registrar of Companies, fall under this category.
2. Classification on the basis of Liability: Under this category there are three types of companies: –
(a) Unlimited Companies: In this type of company, the liability of members of the company is unlimited, Section 2(92) of the Companies Act, 2013 provides that unlimited company means a company not having any limit on the liability of its members, Such companies may or may not have share capital. They may be either a public company or a private company. . The members is liable to the company and to any other person.
(b) Companies limited by guarantee: Section 2(21) of the Companies Act, 2013 provides that a company that has the liability of its members limited to such amount as the members may respectively undertake, by the memorandum, to contribute to the assets of the company in the event of its being wound-up, is known as a company limited by guarantee. The members of a guarantee company are, in effect, placed in the position of guarantors of the company’s debts up to the agreed amount. the members is liable to the company and to any other person.
(c) Companies limited by shares: A company that has the liability of its members limited by the liability clause in the memorandum to the amount, if any, unpaid on the shares respectively held by them is termed as a company limited by shares. Section 2(22) of the Companies Act, 2013 provides that “company limited by shares” means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them.
For example,a shareholder who has paid Rs. 75 on a share of face value Rupees 100 can be called upon to pay the balance of Rupees.25 only’. Companies limited by shares are by far the most common and it may be either public or private.
3. Other Forms of Companies
(a) Section 8 Companies: a person or an association of persons proposed to be registered under this Act as a limited company and proved to the satisfaction of the Central Government that the company –
i. has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
ii. intends to apply its profits, if any, or other income in promoting its objects; and
iii. intends to prohibit the payment of any dividend to its members such person or association of person may be allowed to be registered as a limited company without addition to its name of the word “limited” or private limited by the Central government by issuing a license and by prescribing specified condition.
The association proposed to be registered under section 8 shall not be proposed to be an unlimited company. However the same may be company limited by guarantee or a Company limited by shares.
(b) Government Companies: As per section 2(45) of the Companies Act, 2013 the Government company” means any company in which not less than fifty-one per cent of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company;
(c) Foreign Companies: As per section 2(42) of the Companies Act, 2013 the “foreign company” means any company or body corporate incorporated outside India which,-
(a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and
(b) conducts any business activity in India in any other manner.
(d) Holding and Subsidiary Companies; As per section 2(46) of the Companies Act, 2013 46) the “holding company”, in relation to one or more other companies, means a company of which such companies are subsidiary companies and the expression “company” includes any body corporate.
As per section 2(87) of the Companies Act, 2013 “subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding company), means a company in which the holding company –
(i) controls the composition of the Board of Directors or
(ii) exercises or controls more than one-half of the 19[total voting power] either at its own or together with one or more of its subsidiary companies:
Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed.
Explanation.- For the purposes of this clause, –
(a) a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company;
(b) the composition of a company’s Board of Directors shall be deemed to be controlled by another company if that other company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors.
(c) the expression “company” includes any body corporate.
(d) “layer” in relation to a holding company means its subsidiary or subsidiaries.
As per section 2(11) of the Companies Act, 2013, the “body corporate” or “corporation” includes a company incorporated outside India, but does not include –
(i) a co-operative society registered under any law relating to co-operative societies and
(ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf.
(e) Associate Companies/ Joint Venture Company: As per section 2(6) of the Companies Act, 2013 the “associate company”, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company.
Explanation.- For the purpose of this clause, –
(a) the expression “significant influence” means control of at least twenty per cent. of total voting power, or control of or participation in business decisions under an agreement.
(b) the expression “joint venture” means a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.
(f) Investment Companies: the term “investment company” includes a company whose principal business is the acquisition of shares, debentures or other securities 13[and a company will be deemed to be principally engaged in the business of acquisition of shares, debentures or other securities, if its assets in the form of investment in shares, debentures or other securities constitute not less than fifty per cent. of its total assets, or if its income derived from investment business constitutes not less than fifty per cent. as a proportion of its gross income.
(g) Producer Companies: Producer Company means a body corporate having objects or activities specified in section 581B of the Companies Act, 1956 and registered as Producer Company under the Companies Act.
The objects of the Producer Company shall relate to all or any of the following matters, namely:
i. production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit: Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution ;
ii. processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members ;
iii. manufacture, sale or supply of machinery, equipment or consumables mainly to its Members.
iv. providing education on the mutual assistance principles to its Members and others.
v. rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members.
vi. generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce.
vii. insurance of producers or their primary produce.
viii. promoting techniques of mutuality and mutual assistance.
ix. welfare measures or facilities for the benefit of Members as may be decided by the Board.
x. any other activity, ancillary or incidental to any of the activities referred above or other activities which may promote the principles of mutuality and mutual assistance amongst the members in any other manner.
xi. financing of procurement, processing, marketing or other activities specified above which include extending of credit facilities or any other financial services to its Members.
(h) Nidhi Companies: A nidhi company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013 their core business is borrowing and lending money between their members.
They are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company. These companies are regulated under the Nidhi Rules, 2014 issued by the Ministry of Corporate affairs.
(i) Dormant Companies covered under Section 455 of the Companies Act. 2013 and includes a company which is formed and registered under the Act for a future project or to hold an asset or intellectual property and which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years.
(j) Non-banking Financial Companies: A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 / 2013 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non- banking financial company.
(k) Listed Company: “listed company” means a company which has any of its securities listed on any recognised stock exchange.
(1) Appointment process of independent directors shall be independent of the company management; while selecting independent directors the Board shall ensure that there is appropriate balance of skills, experience and knowledge in the Board so as to enable the Board to discharge its functions and duties effectively. Independent director may be selected from Databank.
(2) The appointment of independent director(s) of the company shall be approved by the company at the meeting of the shareholders.
(3) The explanatory statement attached to the notice of the meeting for approving the appointment of independent director shall include a statement that in the opinion of the Board, the independent director proposed to be appointed fulfils the conditions specified in the Act and the rules made thereunder and that the proposed director is independent of the management. It shall also indicate the justification for choosing the appointee for appointment as Independent Director.
(4) The appointment of independent directors shall be formalized through a letter of appointment, which shall set out:
(a) The term of appointment;
(b) The expectation of the Board from the appointed director; the Board-level committee(s) in which the director is expected to serve and its tasks;
(c) The fiduciary duties that come with such an appointment along with accompanying liabilities;
(d) Provision for Directors and Officers (D and O) insurance, if any;
(e) The Code of Business Ethics that the company expects its directors and employees to follow;
(f) The list of actions that a director should not do while functioning as such in the company; and
(g) The remuneration, mentioning periodic fees, reimbursement of expenses for participation in the Boards and other meetings and profit related commission, if any.
(5) The terms and conditions of appointment of independent directors shall be open for inspection at the registered office of the company by any member during normal business hours.
(6) The terms and conditions of appointment of independent directors shall also be posted on the company’s website.
(7) He shall be hold office for a term of upto 5 consecutive years of a company. [Section 149(10)]
RE-APPOINTMENT OF AN INDEPENDENT DIRECTOR
The re-appointment of independent director shall be on the basis of report of performance evaluation. (
Schedule IV – Code for Independent Directors)
Section 149(11) provides that the Independent Director shall be eligible for re-appointment on passing of special resolution. He shall not hold office for more than 2 consecutive terms, but such independent director shall be eligible for appointment after the expiration of 3 years of ceasing to become an independent director. However, he shall not, during the said period of 3 years, be appointed in or be associated with the company in any other capacity, either directly or indirectly.
Covid-19 crisis has severely impacted almost all industries but disruptions in the airline industry is so profound and it has manifold implications that it is assumed to be greater than the combined crises of 9/11 terror attack in the US and the 2008 global financial crisis combined to put together.
The Government of India (acting through DGCA) (“GoI”) has vide its (i) order dated March 23, 2020, passed under Section 88(1) of the Aircraft Act, 1934; and (ii) orders dated March 26, 2020, and April 14, 2020, directed inter alia all aircraft operators to suspend the operations of all the domestic flights and all scheduled international commercial passenger services until May 3, 2020.
The forward air travel bookings are far outweighed by the cancellations due to which the air travel demand is in its all-time low and drying up in ways that are unprecedented with no semblance of normalcy on the horizon.
CURRENT SCENARIO DUE TO COVID-19
For an industry which is already in stress, the Covid-19 pandemic has only accelerated the process of a bankruptcy filing by several companies (like Virgin Australia and Air Mauritius).
Those airline companies which are still in business have also suffered huge losses and misfortunes as the novel coronavirus-forced lockdowns due to which the airlines had to keep their fleets at bay and grounded.
As per the market sources, apart from the pay cut, several airline companies from the likes of Indigo, Go Airlines etc in India have also taken other cost-cutting measures including furloughs.
Due to the turbulence caused by the outbreak of Covid-19 virus, the airline industry must focus on the horizon as there is always a silver lining in these tough times so that it can successfully navigate a wide array of challenges (including legal, financial and operational) which are likely to surface once the pandemic is behind us.
Future flight plan post the COVID-19 pandemic for the airlines will be influenced to a great extent by factors such as avoiding the countries that have been the virus epicentres and gauging government responses on the type and duration of travel restrictions and the conditions under which they might be relaxed.
Governments across the globe may likely consider imposing specific restrictions/limitations which is akin to the security measures put in place after terrorism events for inbound and outbound passengers.
RESTRICTIONS/ LIMITATIONS
Health screenings or certificates form prescribed by the medical practitioners before the boarding is a must. In the Post-COVID era, megatrends such as the dramatic rise in remote working, government or organisation-imposed limitations/restrictions on air travel, greater reliance on locally-oriented supply chains as well as avoiding non-essential travels will impact the recovery demand in the aviation industry and may lead to a major overhaul in the management and operation of the airline industry.
To fly safely through this turbulent time, it is of utmost importance that the airline companies launch a crisis management team or as its being coined by some in the industry – “Plan Ahead Team”. This Plan Ahead Team will be responsible for collecting forward-looking intelligence and provide a Post Covid-19 flight plan to guide and accelerate decision making.
CHALLENGES/ CONSIDERATIONS
Following are some of the challenges/considerations which airline companies in India may consider while formulating their Post Covid-19 flight plan.
Third-party contractor agreements/Hedging arrangement for jet fuel prices:
To determine the optimal size and dimensions of their networks and fleet, this will hold the key to the survival of airline companies. These companies may have to revamp their strategies vis-à-vis the air travel restrictions imposed by the governments to identify routes that are most likely to recover basis demand, regulatory and market structure scenarios.
The determination of routes that are most likely to recover will determine which fleet/route to recommission. For the routes that could not be recommissioned or are partially commissioned post-COVID-19 and withdrawal of lockdown orders, the airline companies may have to renegotiate/re-assess the legal risk that may arise according to their contracts with third-party contractors engaged for inter alia refuelling; catering; runway/taxiway construction and repair; aircraft maintenance and overhaul; crew training; and flight dispatch.
Further, airline companies must also consider revisiting/re-negotiating their existing contracts for hedging the jet fuel prices. Most of the airline are locked into contracts for hedging the jet fuel prices. There has been a steep drop and the prices of jet fuel is at an all-time low due to the upshot of the current crisis.
Accordingly, the airline companies will have to pay their higher hedged amount for jet fuel, creating hedging loses. In this context, the existing provisions of these contracts become relevant to determine the leverage of discussions from a legal rights perspective.
Financing Arrangements:
Given that the airline companies have suspended all their business, it would be imperative to ascertain if defaults would get triggered under the various financing agreements entered by the airline companies.
Where an event of default is only triggered upon a ‘voluntary’ suspension of business, it may be argued that such temporary cessation of business due to the virus outbreak is a direct consequence of the government regulations and therefore it is outside the purview and scope of such provision.
Further, it would be relevant to check if an event of default is qualified by a requirement that a suspension of business has a “material adverse effect” on the borrower’s ability to perform its contractual obligations.
If there is a significant impact on the borrower’s ability to pay, this will likely satisfy the test of ‘material adverse effect. Additionally, it is expected that post-COVID-19 and lifting of the lockdown orders, for reasons including financial and operational difficulties, the airline companies may not be able to commence operations in all the sectors or may not be in a position to recommission their entire fleet.
Given the aforesaid, it would be relevant for the airline companies to review an event of default provision relating to ‘cessation of business’ in their financing agreements.
Cessation of Business would typically include events where a company ‘threatens’ to suspend or cease to carry on its business and therefore, one may argue that such temporary closures post Covid-19 and/or lifting of lockdown orders, would constitute a ‘cessation’ of business. It would be prudent for airline companies to review their facility agreements when contemplating Covid-19 related measures and consider the impact of such measures may have on their financing arrangements. These tests can be carried out during the period of lockdown, such that the provisions can be re-considered by the parties.
Aircraft Lease Agreements:
The airline companies may have to revisit/review their aircraft lease agreements. The airline companies may consider approaching the lessors for seeking concessions concerning the lease obligations including ‘rental holiday’ on account of liquidity crunch consequent to fall in ticket receipts post Covid-19.
While the lessors may be entitled to decline requests for concessions on lease obligations, the commercial reality may well be that lessors will have to assess whether supporting an airline in some way may improve their financial health in the aftermath of the crisis or whether such benevolence will only delay the end of a business that was struggling in any case.
It may be worthwhile to consider that the relief package/concessions which an airline company may seek from the lessors may include inter alia a standstill for an agreed period with an agreed repayment schedule to recapture the unpaid rents, forbearance on event of default at a cost.
Governmental Support: Globally, the market structure for the airline industry is set to witness a major revamp. This change will be significantly influenced by government responses to the crisis and types and levels of support extended to the airline industry.
In the absence of specific announcements/ relief measures, the airline companies in India may consider approaching the Ministry of Civil Aviation and/or the GoI for relaxation/waiver concerning various fees/licenses including airport charges, AAI and Private Airport Operators’ space rentals and infrastructure charges which are to be paid by them.
This waiver may specifically be sought concerning air spaces/sectors, which the airline companies suspect will not be recommissioned or sectors where the travel demand likely to rebound slowly.
Resolution/Restructuring: Globally there are several airline companies which have filed for bankruptcy. Per CAPA-Centre of Aviation, most world airlines would be bankrupt by the end of May. In this context, the Ministry of Finance (“MoF”) has on March 24, 2020, indicated that if Covid-19 crisis continues beyond April 30, 2020, it may consider suspending Section 7, 9 and 10 of the Insolvency and Bankruptcy Code, 2016 for six months to stop companies from being forced into insolvency proceedings in such force majeure causes of default under the commercial agreements (e.g. financing agreements, lease agreements).
Import Duties and Trade barriers: Government of India is considering putting in place several trade restrictions/embargo on the import of goods from China.
CONCLUSION
As COVID -19 continues to spread across the globe, the challenges triggered by it are numerous and unprecedented. As COVID -19 continues to spread across the globe, the challenges triggered by it are numerous and unprecedented. The Indian tourism and hospitality industry is severely affected by the outbreak of COVID-19.
Once the COVID-19 crisis is contained, the GoI may inter alia consider developing an appropriate messaging/advertising campaign (similar to ‘Incredible India’ tourism campaign) to provide the necessary impetus to the recovery of the aviation industry post-COVID-19.
WEBSITES REFERRED
Covid-19: Flight Plan for Indian Aviation Industry by Subhojit Sadhu & Shrey Srivastava on May 6, 2020,
The Government of India had vide its circular dated April 14, 2020, has decided that all scheduled international commercial passenger services shall remain closed until May 3, 2020. Additionally, a collated list of the Global and regional Government measures related to Covid-19
Post 9/11, it is customary to have long lines at the airport and extensive security checks. The enhanced security measures are being monitored and implemented by the Transportation Security Administration (TSA). The TSA was created as a direct result of the 9/11 attacks
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