Business

Customer Acquisition Cost, or CAC, measures how much an organization spends to acquire new customers. CAC – an important business metric – is the total cost of sales and marketing efforts, as well as property or equipment, needed to convince a customer to buy a product or service. Analyzing CAC in conjunction with Lifetime Value (an estimate of how much revenue an account will bring in over its lifetime by continuing to purchase or subscribe for a longer period of time) or Monthly Recurring Revenue (the measurement of revenue generation by month) is a common way to discover whether or not a company is operating efficiently. What is Customer Acquisition Cost (CAC)? Customer acquisition cost (CAC) is the cost related to acquiring a new customer. In other words, CAC refers to the resources and costs incurred to acquire an additional customer. Customer acquisition cost is a key business metric that is commonly used alongside the customer lifetime value (LTV) metric to measure value generated by a new customer. CAC, meaning customer acquisition cost, known in marketing circles as CAC, describes how much a company has to spend to get a new customer. The use of CAC marketing has risen in popularity as organizations use web analytics to make data-driven decisions. Whether they’re paying to have potential customers click on banners or investing in articles and graphic content, measuring their CAC helps companies figure out if they’re getting their money’s worth as they invest in growing their clientele. Internet marketing methods can target specific groups of customers on a granular level. This is relatively new. Traditionally, companies had to cast a wide net with advertising, which involved aiming their marketing content at a broad segment of potential customers. The hope was that this would bring in at least some new customers. Because this approach lacks specificity, it was common for companies to see undersized returns on their marketing investments. However, modern, targeted campaigns combined with CAC metrics can not only home in on specific groups of people but they can also tell you how much you’re spending per each new prospect to bring them on board and convert them to paying customers. Formula for Customer Acquisition Cost The formula for customer acquisition cost is as follows: Where: Sales and marketing expenses are the advertising and marketing spend, commissions and bonuses paid, salaries of marketers and sales managers, and overhead costs related to sales and marketing over the measurement period. Number of new customers is the total number of acquired customers over the measurement period. Why does CAC matter? CAC reflects the success of your marketing and sales campaign performance. Your marketing and sales teams spend a lot of time, effort, and resources trying to find new customers and improve customer retention. Customer acquisition cost is just one important key performance metric your business must track to determine how effective your campaigns are. Once you understand how much it costs to acquire a customer, you can begin strategizing to reduce those costs, ultimately boosting your return on investment (ROI.) For example, if you want to write a sales email that converts, you may measure the effectiveness of your campaign and A/B test different factors to identify ways to reduce that cost.It costs less to retain customers than it does to find new ones. So, while CAC is an important metric, you must take into account other factors that may contribute to your bottom line, like customer retention. Importance of Customer Acquisition Cost CAC is a key business metric that many businesses and investors look at. In fact, many companies end up failing due to not fully understanding their customer acquisition cost. 1. Improving return on investment- Understanding the cost to acquire new customers is crucial to analyzing marketing return on investment. For example, consider a company that uses several channels to acquire customers:By using CAC, a company is able to determine the most cost-effective way to acquire customers. In the table above, we can see that Social Media provides the lowest acquisition cost while Social Events cost the most. A company presented with this data may consider using social media marketing more to generate more customers. 2. Improving profitability and profit margin- Understanding its CAC provides a business with the ability to fully analyze the value per customer and improve its profit margins. For example, assume that the value of each customer to a business is $60. Relating it to the example above, which channel would you choose to use? A business that does not understand CAC would adversely affect profitability by choosing to use Social Events as a channel. The channels Social Media and Posters would improve profitability for the company as the CAC is lower than the value per customer. How customer lifetime value affects customer acquisition cost Customer lifetime value (CLV, or sometimes LTV) is the amount your company makes from each customer during the customer’s “lifetime” of making purchases from you. Of course, the amount of time a person remains a customer and how much they spend varies greatly among businesses and sectors, so you have to consider the factors that impact your company specifically. However, some elements of CLV are pertinent to most organizations. Average customer life span: This is how long the individual remains a customer. Rate of customer retention: The percentage of customers who buy again. Profit margin per customer: Expressed as a percentage, this may take into account CAC as well as other expenditures such as the overall cost of goods sold, which includes production and marketing costs, and how much it costs to run the company. To calculate the profit margin per customer, take your net income per customer, which is what each customer spends minus the CAC, then divide that number by your revenue from the customer over their lifetime with you. Multiply by 100 to get the percentage. Average amount each person spends over their lifetime as a customer: This is a simple calculation: Add up what each customer spends over their lifetime and divide it by the number of

Cost of Goods Sold (COGS) is the direct cost of a product to a distributor, manufacturer, or retailer. Sales revenue minus cost of goods sold is a business’s gross profit. The cost of goods sold is considered an expense in accounting. COGS are listed on a financial report. What Is Cost of Goods Sold (COGS)? Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs. Why Is Cost of Goods Sold (COGS) Important? COGS is an important metric on financial statements as it is subtracted from a company’s revenues to determine its gross profit. Gross profit is a profitability measure that evaluates how efficient a company is in managing its labor and supplies in the production process. Because COGS is a cost of doing business, it is recorded as a business expense on income statements. Knowing the cost of goods sold helps analysts, investors, and managers estimate a company’s bottom line. If COGS increases, net income will decrease. While this movement is beneficial for income tax purposes, the business will have less profit for its shareholders. Businesses thus try to keep their COGS low so that net profits will be higher. Cost of goods sold (COGS) is the cost of acquiring or manufacturing the products that a company sells during a period, so the only costs included in the measure are those that are directly tied to the production of the products, including the cost of labor, materials, and manufacturing overhead.For example, COGS for an automaker would include the material costs for the parts that go into making the car plus the labor costs used to put the car together. The cost of sending the cars to dealerships and the cost of the labor used to sell the car would be excluded. Formula and Calculation of Cost of Goods Sold (COGS) COGS=Beginning Inventory+P−Ending InventorywhereP=Purchases during the period​   Inventory that is sold appears in the income statement under the COGS account. The beginning inventory for the year is the inventory left over from the previous year—that is, the merchandise that was not sold in the previous year. Any additional productions or purchases made by a manufacturing or retail company are added to the beginning inventory. At the end of the year, the products that were not sold are subtracted from the sum of beginning inventory and additional purchases. The final number derived from the calculation is the cost of goods sold for the year.The balance sheet has an account called the current assets account. Under this account is an item called inventory. The balance sheet only captures a company’s financial health at the end of an accounting period. This means that the inventory value recorded under current assets is the ending inventory. What Are Different Accounting Methods For COGS? The value of the cost of goods sold depends on the inventory costing method adopted by a company. There are three methods that a company can use when recording the level of inventory sold during a period: first in, first out (FIFO), last in, first out (LIFO), and the average cost method. The special identification method is used for high-ticket or unique items. FIFO- The earliest goods to be purchased or manufactured are sold first. Since prices tend to go up over time, a company that uses the FIFO method will sell its least expensive products first, which translates to a lower COGS than the COGS recorded under LIFO. Hence, the net income using the FIFO method increases over time. LIFO- LIFO is where the latest goods added to the inventory are sold first. During periods of rising prices, goods with higher costs are sold first, leading to a higher COGS amount. Over time, the net income tends to decrease. Average Cost Method- The average price of all the goods in stock, regardless of purchase date, is used to value the goods sold. Taking the average product cost over a time period has a smoothing effect that prevents COGS from being highly impacted by the extreme costs of one or more acquisitions or purchases. Special Identification Method- The special identification method uses the specific cost of each unit of merchandise (also called inventory or goods) to calculate the ending inventory and COGS for each period. In this method, a business knows precisely which item was sold and the exact cost. Further, this method is typically used in industries that sell unique items like cars, real estate, and rare and precious jewels. What Are the Limitations of COGS? Allocating to inventory higher manufacturing overhead costs than those incurred Overstating discounts Overstating returns to suppliers Altering the amount of inventory in stock at the end of an accounting period Overvaluing inventory on hand Failing to write off obsolete inventory How Do You Calculate Cost of Goods Sold (COGS)? Cost of goods sold (COGS) is calculated by adding up the various direct costs required to generate a company’s revenues. Importantly, COGS is based only on the costs that are directly utilized in producing that revenue, such as the company’s inventory or labor costs that can be attributed to specific sales. By contrast, fixed costs such as managerial salaries, rent, and utilities are not included in COGS. Inventory is a particularly important component of COGS, and accounting rules permit several different approaches for how to include it in the calculation. FAQs Why is COGS important for businesses? COGS is a key metric in determining a company’s profitability. It helps calculate the gross profit and provides insights into the efficiency of the production process and the pricing strategy. What costs are included in COGS? COGS includes direct costs directly associated with the production of goods, such as raw materials, direct labor, and manufacturing overhead. How do you calculate COGS? COGS is calculated by adding the direct costs of production, such as raw materials and labor, and subtracting the ending inventory from the total. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing

The placebo effect of price occurs when consumers believe that the more expensive the product, the better its quality, even if this is not true. Learn the definition of the placebo effect of price and analyze how it affects businesses and consumers. The placebo effect in business may lead to increased customer satisfaction if customers believe they are receiving added value, even if the actual product or service remains unchanged. the placebo effect can influence employee performance. For example, if employees believe that a new management strategy will enhance productivity, their perception of improved performance may lead to actual positive outcomes. The Placebo Effect of Price The placebo effect of price takes this theory and expands on it. It says that if you have two products and one is marked as being more expensive, it will be perceived as the better product, even if it’s identical to the other.  What Does This Mean in Business?  It means that discounting your products might actually harm your business. So, charge what you need to on a product or service to make a profit. Second, it means other businesses can charge extremely high prices for the exact same product. This means you should educate your customers about your product, perform comparisons with the competing product to show similarities, and then let the buyer decide. What Does This Mean as a Consumer? Essentially, this means that, as a consumer, you shouldn’t believe everything you read. Make sure to do your research and know that blind studies might be one of the best ways to determine products’ value and efficacy. If you tried the aforementioned chicken without knowledge of the packages, how might the outcome be different? You can also test out the placebo effect of price in real life. For instance, if you are trying to find the best wine, buy a selection, have someone else pour you a glass of each, then taste them one by one. See which one you actually like and buy that one  Placebo Effect In Marketing Consumers Believe That They Get What They Pay For In marketing, most consumers think a product’s price and quality are directly correlated. Even though it may not always be accurate, some individuals still believe that paying more would result in a superior product. The powerful placebo effect of the relationship between price and quality will make people assume that pricey products should have superior quality to cheap ones.  One study found that serving the same coffee in two different containers, one of higher quality and one of lower quality, would lead consumers to believe the coffee in the higher quality container would taste better.   Offering goods discounts alone may not be enough for vendors to generate steady sales. People who can easily receive the discount will begin to believe the quality of the products may not be that good, which will gradually impact overall sales. In contrast, people will believe that a product must be of high quality if its price is kept high, and only occasionally do they receive a discount.   Most buyers believe that the high price is the defining characteristic of luxury products. In essence, there shouldn’t be any sales or low prices for luxury brands. People will perceive this as a placebo, especially among the established elite clientele.  FAQs What is the placebo effect in a business context? In business, the placebo effect may refer to instances where psychological or non-substantive factors influence perceptions, performance, or outcomes. It could be associated with the belief in the effectiveness of certain strategies or interventions. Is the placebo effect relevant in the context of leadership and management practices? Yes, leadership styles, communication, and management practices can influence employees’ perception of their work environment, job satisfaction, and overall performance, similar to the placebo effect. How does the placebo effect manifest in marketing and branding? In marketing, the placebo effect can occur when branding or advertising creates a perception of value or quality that may not necessarily be objectively present. Consumers may attribute positive qualities to a product based on brand reputation or marketing messages. 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Commoditization refers to the process of making something into a commodity. More broadly, commodification is taking something that previously was not available in the market and making it so, for instance the commoditization of the food chain has brought many more foods to the market, but has left small producers behind in favor large, low-cost producers.Commoditization moreover often removes the individual, unique characteristics, and brand identity of the product so that it becomes interchangeable with other products of the same type. Making commodities interchangeable allows competition with a basis of price only and not on different characteristics.When a financial contract such as a mortgage becomes commoditized, the contract becomes more liquid because it can be bought and sold readily. This liquidity promotes trading in that market because the agreements do not have to be assessed individually and treated uniquely. Introduction Commoditization means the process of making something into a commodity. It refers to a good or service becoming indistinguishable from similar products. Any item should satisfy the following three conditions to consider is as a commodity: It must be standardized, for agricultural and industrial commodities, in a “”raw”” state It must be usable upon delivery Its price must vary to justify creating a market Most of the people think that commoditization applies to agricultural products and other raw materials only, but commoditization can be applied to financial instruments. For example, when issuing loans in the past, the terms and conditions of every loan were specialized as per the borrower and his property. But over time, the government authorities commoditized mortgages by offering to buy almost any mortgage that met a set of conforming standards. These agencies encourage banks to streamline and standardize the types of mortgages they offer to consumers. When the terms of the bond or loan do not vary in a financial contract, it will undergo commoditization, Imagine an example of a mortgage, where the loan can be unique to the borrower, but a commodity to an investor who buys mortgages as investments. Once commoditization happens, the company’s ability to command premium prices for its products disappears, and commodity-based pricing usually leads to much lower profit margins. It’s important to know what is a good commoditization so that the investor can recognize when it happens to a company in which he invested. Commoditization makes an asset easier to trade. It also encourages a more liquid market. Sometimes this can add volatility to the price of the commoditized entity, but in other cases, it can promote economic activity. In the case of the mortgage industry, commoditization provides more cash from selling conforming mortgages to government agencies and government-sponsored entities. The banks can use the cash to issue more loans, theoretically encouraging economic growth. How to address commoditization Addressing commoditization can help generate more consumer interest in your products by differentiating them from other products of a similar class. Here are some ways to address commoditization: 1. Create a product niche-Narrowing your products into a more targeted niche within the market can help reduce commoditization and attract new buyers. Niches target specific groups, features or customer preferences. The more niche a product is, the more loyal its customer base can be, especially if there are few competitors within that niche. Consider creating a more specific niche to retain your product’s unique status in the industry. For example, if you sell bookkeeping software, you could market it as bookkeeping software specifically for small retail businesses. 2. Introduce a creative pricing structure- Creative pricing can be an effective way to make your products more unique because prices typically distinguish commoditized products from each other. A creative pricing structure often makes it more challenging for a consumer to compare your prices directly with the competition, potentially increasing the chances that they choose your product. Consider bundling different products and services for a more complex pricing structure or offer multiple services as a package. For example, instead of simply offering classes, you might offer a complete course for a fixed amount. 3. Customize your advertising to pain points-Marketing is a great tool that brands can use to combat commoditization because it helps shape the customer’s view of the products and brand. Creating more appealing advertising that focuses on direct customer pain points may help customers feel more confident that your product is the best choice among its competitors. For example, you might try focusing on how your bookkeeping software solves common financial problems for small retail businesses. Marketing directly to customer pain points can inspire action and create satisfaction for the customer. 4. Leverage the market- Markets and buyer trends often change with financial shifts, quality standards and product demands. If there are advantages your brand can leverage in the market, it’s important to identify them so you can make your products unique. Determine what advantages currently exist in your market, such as high demand for specific products or features. You can then create products or customize existing ones to include those features to give you leverage over competitors. For example, if there’s a high demand for inventory management features in bookkeeping software, you might add an inventory feature to your software to leverage the market. 5. Listen to feedback- Consider listening to customer feedback about your products, services, pricing and features. Customer feedback can help a business grow and learn what customers find unique in its products or services. If you notice a pattern, you can address that pattern to make your brand more unique. A brand that listens to its customers might earn a higher status in the market because of its dedication to customer service. Consider asking customers for feedback through email, post-purchase surveys or in-person or phone conversations. Commoditization Challenges Businesses Products that lack distinguishing features tend to eventually decline in price and cause dwindling profit margins. Therefore, companies strive to delay commoditization, as long as possible, in order to maintain the special status of their product offerings.One way in which a company can delay commoditization is by bundling its commoditized products or services with related offerings, to create attractive packaging that has a unique combination of offerings—even if the offerings

Omnichannel distribution is an approach to distribution that enables customers to buy and receive products from multiple sales channels that are seamlessly integrated. This means that a customer can make a purchase through one channel and even choose to receive it through another. Think a customer placing an order online and having it shipped to the store, where they can pick it up. What is omnichannel distribution? Omnichannel distribution is a strategy that moves goods through multiple online and offline channels to allow customers to receive their purchased products in the way that best suits their needs. For example, if a customer wants to buy something from a retailer that uses an omnichannel model, they could choose whether to go shopping in person, have the product delivered to their doorstep, or order it online and pick it up at the store.  With true omnichannel distribution, barriers between sales channels are non-existent. For example, when the inventories of ecommerce and brick-and-mortar stores are integrated, omnichannel distribution creates a seamless, convenient shopping experience and maximizes operational efficiency.  Two types of distribution Forward distribution system. Characterized by its sources (dispatching locations), destinations (points of reception) and associated links. When building it, you should take into consideration different types of sources and destinations in the physical structure, as well as possible delivery processes and modes. Backward distribution system. The mixture of the physical flow of return products, and the locations where products returned. It covers shipment between customers and stores. The 6 omnichannel distribution sales channels Products take many different journeys to arrive in a customer’s hands with an omnichannel supply chain.  Ship from store. Customers order online, and their purchases are shipped directly to them from the nearest store location.  Drop-shipping. Customers order online, and the company ships the product to them via a third-party vendor. Buy online, pick up in-store (BOPIS). Customers order online, then go to the brick-and-mortar to pick up their purchase.  Reserve online, pick up in-store (ROPIS). Customers reserve an item online. They then go to the store, decide if they want to buy the item, and complete the transaction using the store’s point of sale (POS) system.  Buy online, return in-store (BORIS). Customers buy something online but change their mind and return it to the store location. In-store purchase, home delivery. Customers purchase a product in the store and have it delivered to their homes. This is a popular choice when buying furniture or appliances. Why Omnichannel Distribution is important? Customers take it for granted that a distributor will provide them with a seamless experience and the ability to make purchases in any way they want. If you can’t give them such an experience they will get the product from your competitors. Consistent sales efforts across multiple channels increase brand awareness and allow the brand to reach new audiences. Customers become better acquainted with the product gaining the trust they need to buy it. It increases profit. omnichannel customers spend more money. Flexibility increases buying opportunities and provides a wider means to access and purchase the products. All data is analyzed centrally, so you don’t have to engage personnel for each distribution channel separately. Thus, revenues increase and costs may decrease when compared to a multichannel strategy. What is the difference between omnichannel and multichannel distribution? Multichannel distribution uses multiple sales channels, but they’re siloed, meaning that inventory cannot move between channels. This limits the options that customers have for buying and receiving goods. For example, let’s say that Harold orders a pair of shoes online from a multichannel retailer. He doesn’t have the option of picking the shoes up at the nearest store and instead has to wait a week for them to be delivered to his home. On the other hand, an omnichannel approach breaks down barriers between channels, allowing customers to switch effortlessly between them. Using the previous example, Harold orders a pair of shoes online and chooses to pick them up from the store to save on shipping costs and get the shoes in time for his daughter’s wedding. The added flexibility and convenience of an omnichannel approach encourages Harold to buy from the store again and again.  The biggest challenges of omnichannel distribution Inventory visibility. Since omnichannel distribution is so flexible, inventory can be stored in multiple locations—stores, warehouses, distribution centers, or any combination of the three. With multiple locations for inventory comes an urgent need to keep track of inventory levels, availability, and movement in real time. It’s crucial to maintain inventory visibility across locations to avoid overstocking or stockouts. While developing a strong inventory management system can be a challenge, it’s an essential element of omnichannel distribution and can be simplified with the right technology. Delivery speed. If it’s not done right, omnichannel distribution can result in orders getting delayed. When inventory is stored at multiple locations, businesses must perfectly coordinate and optimize inventory allocation, logistics, and transportation to deliver an omnichannel experience that actually works for customers. Failure to do so has hefty consequences: when omnichannel delivery takes too long, nearly half of consumers will shop somewhere else. How to implement omnichannel distribution Get an inventory management system. A defining characteristic of omnichannel distribution is integrated inventory. When inventory is shared across channels, efficiency soars because buyers can access the products closest to them, regardless of whether they’re picking up their purchases or having them delivered. But without a system for tracking inventory, you’re likely to either overstock or run out of goods. Because of this, it’s essential to invest in the right technology. An inventory management system will help you keep things under control.  Put the customers’ needs first. The first step in putting your customers’ needs first is to understand those needs. Successful omnichannel distribution models collect data throughout the customer journey to give you insight into how individuals interact with your business. Analyzing this data will help you understand your customer base, personalize each person’s buying experience, and identify pain points. You can also go straight to the source by paying attention to the feedback people leave via surveys and online reviews.

the Trade Unions Act, 1926 was enacted on March 25, 1926, in order to register and safeguard these worker groups. Consequently, the registration of the trade unions raised the status of the unions in the eyes of employers and the general public. Before we proceed with the registration of trade unions it is important to understand the history of the trade union movement in India.India saw the growth of industrialisation and capitalism during the initial years of the 20th Century. With the number of workers increasing with each passing day, it became important to safeguard and protect the rights of these workers and to formalize the groups thus formed. Therefore, for the registration and protection of these groups of workers, the Indian Trade Unions Act, 1926 (now known as Trade Unions Act, 1926) was enacted on March 25, 1926. Definition of “Trade Union” as per Legal Acts The Trade Unions Act, 1926 defines a trade union as any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen or between employers and employers or for imposing restrictive conditions on the conduct of any trade or business. A group of seven or more members of a trade union may apply for registration of a trade union with the concerned Registrar of trade unions. A registered trade union is a body corporate by the name under which it is registered, having perpetual succession and a common seal with the power to contract and to hold movable and immovable property. A trade union may sue or be sued in its name. The Industrial Disputes Act, 1947 defines “Trade Union” as a trade union registered under the Trade Unions Act, 1926. Therefore, any Trade Union, which is not registered under the Trade Unions Act, cannot be treated as a Trade Union under the Industrial Disputes Act, 1947. An unregistered trade union has no manner of right whatsoever and the rights available under the Industrial Disputes Act, 1947 have been limited only to those trade unions which are registered under the Trade Unions Act, 1926. Is it necessary to register a Trade Union? Though an unregistered trade union may function as a normal trade union defined under the Trade Unions Act, an unregistered trade union neither has the power to raise an industrial dispute, nor the power to represent an employee or be part of any proceedings under the Industrial Disputes Act. An unregistered trade union is also incapable of entering into a contract with the employer on behalf of the members or employees, and if it does so, the enforcement of the same by such an association or union in its name may not be possible.   Mode of Registration According to section 4 of the Trade Union Act, any seven or more members of a Trade Union in accordance with the provisions of the Act may make an application apply for registration of the trade union. There are two conditions subsequent to the same, firstly no trade union of workmen shall be registered unless at least 10% or 100 of the workmen, whichever is less engaged in the employment of the establishment are its members on the date of making of its application and secondly no trade union shall be registered unless on the date of making of application, minimum seven of its members who are workmen are employed in the establishment or industry. Also, such application shall not be deemed to be invalid merely on the ground that at any time after the date of the application, but before the registration of the trade union some of the members but not exceeding half of the total number of persons who made the application has ceased to be members. Application for registration According to section 5 of the Act, every application for the registration of the trade union shall be made to the Registrar and shall be accompanied by a copy of the rules of the Trade Union and a statement of the following particulars namely- The names, occupations and addresses of the members making the application; The name of the trade union and the address of its head office, and The titles, names, ages, addresses and occupations of the office- bearers of the trade union. Where a trade union has been into existence for more than a year, then a copy of the assets and liabilities shall also be submitted along with the application for registration. Provisions to be contained in the rules of a Trade Union According to section 6 of the Act, a Trade Union shall not be entitled to registration under the Act unless the executive committee has been established in accordance with the provisions of the Act and the rules provide for the following- The name of the trade union; The whole of the objects for which the trade union has been established; The whole of the purposes for which the general funds of the trade union shall be applicable; The maintenance of a list of the members of the trade union; The admission of ordinary members who shall be persons actually engaged or employed in an industry with which the trade union is connected; The conditions under which any member shall be entitled to any benefit assured by the rules and under which any fine or forfeiture may be imposed on the members; The manner in which the rules shall be amended, varied or rescinded; The manner in which the members of the executive and the other office bearers of the Trade Union shall be elected and removed; The safe custody of the funds of the trade union, an annual audit, in such manner, as may be prescribed, of the accounts thereof, and adequate facilities for the inspection of the account books by the office bearers and members of the trade union, and; The manner in which the trade union may be dissolved. Power to call for further particulars and to require alteration of name

This permit is required by any person or entity desiring to import soil, peat, sphagnum moss or other growing media under the Plant Quarantine (Regulation of Import into India) Order, 2003. Import, for the purposes of this approval is defined as an act of bringing any kind of seed, plant, plant product or any other regulated article from a place outside India either by sea, land, air or across any customs frontier into any part or place of territory of Republic of India. Who can apply Any person or entity that desires to import soil, peat, sphagnum moss or other growing media under the Plant Quarantine (Regulation of Import into India) Order, 2003. Documents required Proforma invoice/ catalogue Letter of agreement DAC approval (if required) Approval applicability Applicable if importing soil in any form for research purposes, growing media (with soil, peat or other organic materials), peat or sphagnum moss for horticultural purposes. Act and Rules THE DESTRUCTIVE INSECTS AND PESTS ACT, 1914ACT NO. 2 OF 19141[3rd February, 1914.]An Act to prevent the introduction into 2[India] 3[and the transport from one province to another]4*** of any insect, fungus or other pest, which is or may be destructive to crops.WHEREAS it is expedient to make provision for preventing the introduction into 5 [India] 3[and thetransport from one province to another] 4*** of any insect, fungus or, other pest, which is or may bedestructive to crops; It is hereby enacted as follows:—1. Short title and extent.—6[(1)] This Act may be called the Destructive Insects and Pests Act, 1914.7[(2) It extends to the whole of India 8***.]2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—(a) “crops” includes all agricultural or horticultural crops 9[and all trees, bushes or plants];(b) “import” means the bringing or taking by sea, 10[land or air] 11[across any customs frontier as definedby the Central Government]; 12***(c) “infection” means infection by any insect, fungus or other pest injurious to a crop; 13***14* * * * *3. Power of Central Government to regulate or prohibit the import of articles likely to infect.—(1)The Central Government may, by notification in the Official Gazette, prohibit or regulate, subject to suchrestrictions and conditions as it may impose, the import into 15[India], or any part thereof, or any specifiedplace therein, of any article or class of articles likely to cause infection to any crop 16[or of insects generallyor any class of insects].(2) A notification under this section may specify any article or class of articles 16[or any insect or class ofinsects], either generally or in any particular manner, whether with reference to the country of origin or theroute by which imported or otherwise.1. The Act has been extended in its application to Dadra and Nagar Haveli (w.e.f. 1-7-1965) by Reg. 6 of 1963, s. 3 and the FirstSchedule and to Pondicherry on 1-10-1963: vide Reg. 7 of 1963, s. 3 and the First Schedule.2. Subs. by Act 3 of 1951, s. 3 and the Schedule for “Part A States and Part C States”.3. Ins. by Act 6 of 1938, s. 2.4. The words “in British India” were omitted by the A.O. 1948.5. Subs. by Act 3 of 1951, s. 3 and the Schedule for “the territories comprised within Part A States and Part C States (hereinafter inthis Act referred to as the said territories)”.6. Section 1 re-numbered as sub-section (1) thereof by s. 3 and the Schedule, ibid.7. Ins. by s. 3 and the Schedule, ibid.8. The words “except the State of Jammu and Kashmir” omitted by Act 62 of 1956, s. 2 and the Schedule (w.e.f 1-11-1956).9. Subs. by Act 6 of 1938, s. 3, for “and trees or bushes”.10. Subs. by Act 20 of 1930, s. 2, for “or land”.11. Ins. by the A.O. 1937. For definition of customs frontier, see section 3A of the Sea Customs Act, 1878 (8 of 1878) and Gazette ofIndia, Pt. II, Sec. 3, dated 6th August, 1955, p. 1521.12. The word “and” omitted by Act 3 of 1939, s. 2.13. The word “and” omitted by the A.O. 1948, which was earlier added by Act 3 of 1939, s. 2.14. Clause (d) omitted by Act 62 of 1956, s. 2 and the Schedule (w.e.f. 1-11-1956). Earlier it was subs. by Act 3 of 1951, s. 3 and theSchedule.15. Subs. by Act 3 of 1951, s. 3 and the Schedule for “the said territories”.16. Ins. by Act 6 of 1938, s. 4.31[(3) The Central Government may, by notification under this section, also levy and collect such fees atsuch rates and in such manner as may be specified therein for making an application for a permit to import, orfor making inspection, fumigation, disinfection, disinfestation or supervision of, any article or class of articlesof any insect or class of insects under this section].4. Operation of notification under section 3.—A notification under section 3 shall operate as if it hadbeen issued under section 19 of the Sea Customs Act, 1878 (8 of 1878), and the officers of Customs at everyport shall have the same powers in respect of any article with regard to the importation of which such anotification has been issued as they have for the time being in respect of any article the importation of whichis regulated, restricted or prohibited by the law relating to Sea Customs, and the law for the time being inforce relating to Sea Customs or any such article shall apply accordingly.2[4A. Power of Central Government to regulate or prohibit transport from State to State of insectsor articles likely to infect.—The Central Government may, by notification in the Official Gazette, prohibitor regulate, subject to such conditions as the Central Government may impose, the export from a State or thetransport from one State to another State 3*** of any article or class of articles likely to cause infection to anycrop or of insects generally or any class of insects.4B. Refusal to carry article of which transport is prohibited.—When a notification has been issuedunder section 4A, then, notwithstanding any other law for the time

International Gemological Institute (IGI) is a diamond, colored stone and jewelry certification organization. IGI is headquartered in Antwerp and has offices in New York City, Hong Kong, Mumbai, Bangkok, Tokyo, Dubai, Tel Aviv, Toronto, Los Angeles, Kolkata, New Delhi, Surat, Chennai, Thrissur, Ahmedabad, Shanghai, and Cavalese. Established in 1975, IGI is the largest independent gemological laboratory worldwide. It also runs Schools of Gemology in several locations around the globe What is International Gemological Institute? International Gemological Institute, also known as IGI, is an organisation that certifies diamonds, gemstones, and fine jewellery. It is the largest independent lab in the world for the purpose. The institute was established in 1975 with Antwerp as its headquarters. They have offices spread across the world, including Hong Kong, New York, Los Angeles, Toronto, Mumbai, New Delhi, Tokyo, and several other places. Around the world, certificates issued by this institute instil trust in gemstone buyers and sellers. When it comes to buying precious stones, trust is a big issue for the buyers. The experts at the institute help you overcome this issue. They carry out full analysis of diamonds and gemstones and provide detailed reports on the same. They analyse each stone and grade them accurately. The final report carries all details about the colour, cut, clarity, and carat weight of the stone. Such a certificate helps you to know in detail about the stones you want to buy. It serves as a promise of authenticity and quality. Buyers from around the globe widely accept IGI certificates as a mark of excellence. The information about the diamonds and gems is stored in their database. You may get a copy of the report if the need arises. Why is Certification Important? Are you planning to buy a solitaire diamond ring? Or are you looking for gemstone gold pendants? Either way, you can’t overlook the importance of certification. Not all stones are created equal. The value of a precious stone depends on a lot of factors, including its finished quality. The natural rarity is another factor contributing to the value of gemstones. You may find that two diamonds or gemstones look the same. But their value may differ greatly. You cannot determine the value of gemstones by simply looking at it. Often, gemstones undergo treatments and other enhancement processes. Also, there are synthetic gems available in the market these days. Even an expert in the field needs powerful tools to analyse and find their true value. For instance, a proper analysis can help to find out if a diamond is a natural one or not. It will also help you make out whether your gemstones are treated or altered. A certificate discloses all such things and helps you make an informed choice. So, when you buy that shiny diamond nose pin or the sapphire ring, you will know exactly what you are buying. What Reports do IGI provide? Diamond Report: It is a statement of a diamond’s quality. This report provides an accurate assessment of the 4Cs – the cut, color, clarity and carat weight of a diamond. It is based on international standards. You can get this report for a diamond of any size. At these labs, each stone is analysed by experts using latest tools and techniques. Apart from the 4Cs, the stone is also analysed for any treatment or enhancement. Reports for coloured diamonds and lab-grown ones can also be availed. The detailed report is presented in an easy to understand format. Coloured Stone Report: This report states the gemstone’s exact variety. It also tells you about the stone’s cut, shape, carat weight, colour, and other details. If the stone has gone through any treatment, you will be able to know about it from this report. This report will tell you if the stone is a natural one or not. You may even get to know about the stone’s country of origin, if you ask for it. Coloured stones are often treated to enhance their beauty and value. As such, it becomes important to have them analysed before you buy them. You will know for sure that the stone you are buying is real or fake. Jewellery Report: This institute was the first lab to offer such a report. Experts here analyse both the metal and the mounted stones and provide a complete report on the jewellery. Details such as the content and weight of the metal are clearly stated. Also, the stone’s details are provided. These include the stone’s cut, clarity, shape, colour, finish, weight, etc. This means now you can have a complete report on any trinket. It doesn’t matter whether the trinket has diamonds or any other gemstones. You will be able to get a full report without causing any harm to the stone setting. That way you can be sure of the jewel.  FAQs What is IGI? IGI stands for the International Gemological Institute. It is an independent gemological laboratory that provides grading and certification services for diamonds, gemstones, and jewelry. What does an IGI certificate include? An IGI certificate typically includes detailed information about the characteristics of a diamond or gemstone, including the cut, color, clarity, carat weight, and other relevant details. It may also include a diagram illustrating the diamond’s internal and external features. Why is an IGI certificate important? An IGI certificate serves as an official document that verifies the authenticity and quality of a diamond or gemstone. It provides consumers with essential information to make informed decisions when purchasing jewelry. 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LGD are manufactured in laboratories, as opposed to naturally occurring diamonds. However, the chemical composition and other physical and optical properties of the two are the same. Naturally occurring diamonds take millions of years to form; they are created when carbon deposits buried within the earth are exposed to extreme heat and pressure. What are Lab-Grown Diamonds (LGDs)? Lab-grown diamonds are also known as synthetic diamonds. These are synthetic diamonds having identical chemical and physical characteristics to diamonds found in nature. Scientists at a General Electric research facility in New York invented the first LGD in 1954. Use of Lab-Grown Diamonds: Due to their superior thermal conductivity, pure synthetic diamonds are employed as heat spreaders for high-power laser diodes and high-power transistors in electronics. They are used as cutters and in other tools and machinery that need these characteristics. They are often employed in industrial settings because of their strength and hardness. How are they produced? Two basic processes—the High-Pressure High Temperature (HPHT) approach and the Chemical Vapour Deposition (CVD) method—are used to produce lab-grown diamonds. In the HPHT process, pure graphite carbon and a seed diamond are subjected to temperatures and pressures that are over 1,500 degrees Celsius. The seed diamond is heated using the CVD process inside a sealed chamber that is filled with gas rich in carbon. Properties and Applications of LGDs Physical Properties: Lab-Grown Diamonds have the same hardness, refractive index, and dispersion as natural diamonds. Applications: They are used in jewelry, cutting tools, scientific instruments, and electronics. Ethical and Environmental Advantages Ethical Sourcing: Lab-Grown Diamonds are conflict-free, alleviating concerns about “blood diamonds” associated with unethical mining practices. Reduced Environmental Impact: Traditional diamond mining can have significant environmental consequences, making LGDs a more eco-friendly option. Lab-grown Diamonds Significance The manufacturing of lab-grown diamonds has a lesser environmental impact than natural diamond extraction. Open-pit mining produces a lot of waste and causes environmental damage, such as soil erosion and water and air pollution. However, the manufacture of lab-grown diamonds can take place in a controlled setting, lowering the possibility of environmental harm. Diamond Industry in India A brief about the diamond industry in India is given below. The largest diamond exporter in the world is India. 19% of all diamond exports worldwide come from India. Only diamonds make up 50% of the country’s total gem and jewellery exports. A significant location for the production of diamonds is Surat, Gujarat. The biggest market for cut and polished diamonds is the United States, closely followed by China. The established diamond industry in India, which performs these duties, is not likely to be impacted by the increase in the production of LGDs. Every year, the nation exports diamonds to nations like China, the United States, and the United Arab Emirates. Lab-Grown Diamonds & Indian Economy The Indian economy is significantly influenced by the gems and jewellery industry. It contributes roughly 7% to GDP and 10%–12% to all exports of goods from the nation. With 5 million skilled and semi-skilled workers employed, it is one of the leading sectors in terms of job creation. Lab-Grown Diamonds in India Challenges Lack of awareness: Many consumers in India are still not aware of lab-grown diamonds, or they may have misconceptions about them. This can make it difficult for lab-grown diamond companies to market their products and generate demand. Competition from natural diamonds: The natural diamond industry is well-established in India, and it has a strong brand reputation. This can make it difficult for lab-grown diamond companies to compete on price or quality. Regulatory challenges: The Indian government has not yet developed clear regulations for the lab-grown diamond industry. This can make it difficult for companies to operate and comply with the law. Supply chain challenges: The lab-grown diamond industry is still in its early stages of development, and the supply chain is not as well-developed as the natural diamond supply chain. This can make it difficult for companies to obtain the materials and equipment they need to produce lab-grown diamonds. FAQs How are lab-grown diamonds created? Lab-grown diamonds are typically produced using two main methods: High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). Both methods replicate the conditions under which natural diamonds are formed but in a controlled environment. How can you distinguish between lab-grown and natural diamonds? Distinguishing between lab-grown and natural diamonds may require specialized testing equipment. However, some lab-grown diamonds may have distinctive features, and gemological laboratories can provide certificates confirming their origin. Are lab-grown diamonds eco-friendly? Lab-grown diamonds are often considered more environmentally friendly than mined diamonds because they require fewer natural resources and don’t involve the environmental impact associated with mining. 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For Indians, gold has traditionally been considered a valuable metal and a top investment choice. However, because of the rise in demand for gold, there is now a serious problem with fake gold. To address this problem, hallmark symbols were added to gold to guarantee the metal’s genuineness.  Definition of Hallmark Symbols Gold has several markings or stamps called hallmarks that indicate the gold’s provenance, origin, and purity. These symbols guarantee the quality and purity of the gold and are stamped on objects made of gold by licenced organisations. A hallmark is a quality assurance symbol showing that a piece of gold complies with specific requirements. Significance of Hallmark Symbols on Gold The hallmark symbols on gold are significant because they assure the buyer of the purity and authenticity of the gold item.  These signs aid in preventing the acquisition of fake gold, which is a serious issue in India. The gold item gains value and indicates quality thanks to the hallmark symbols. Identifying a gold item’s purity without hallmark marks might be challenging. Types of Hallmark Symbols BIS Hallmark- The BIS hallmark is the most common hallmark symbol found on gold items in India. It is a symbol of quality and purity and is granted by the Bureau of Indian Standards (BIS). The BIS hallmark has four marks that indicate the purity of the gold item. The first mark is the BIS logo, which signifies that the BIS has tested and verified the gold item.  The second mark is the purity mark, which indicates the purity of the gold item in terms of karats. The third mark is the assay center mark, indicating where the gold item was tested and verified. The fourth mark is the jeweller’s identification mark, which indicates the jeweler who sold the gold item. Non-BIS Hallmark- The non-BIS hallmark is a symbol granted by private agencies and not recognised by the government. The non-BIS hallmark has three marks that indicate the purity of the gold item, the testing agency’s logo, and the jeweller’s identification mark. Non-BIS hallmark is not as reliable as BIS hallmark as there are no standards for purity and quality that these private agencies need to adhere to. International Hallmark- The international hallmark is a hallmark symbol that is recognised globally. Organisations like the World Gold Council grant it and ensures that the gold item meets international standards. The international hallmark has a purity mark and a logo that indicates the organisation that granted the hallmark meaning. Common Hallmark Symbols- Some of the most common hallmark symbols on gold in India are: 22KT- 22KT is a purity mark that indicates that the gold item is 22 karats pure. 22 karat gold is India’s most commonly used type of gold for jewelry. 18KT-18KT is a purity mark that indicates that the gold item is 18 karats pure. 18 karat gold is also a popular choice for jewelry. 916- 916 is a purity mark that indicates that the gold item is 91.6% pure. This purity mark is commonly used for gold coins and bars. BIS Logo- The BIS logo is a mark that indicates that the gold item has been tested and verified by the Bureau of Indian Standards. Reading and Interpreting Hallmark Symbols- Reading and interpreting hallmark symbols on gold is essential to determine the purity and authenticity of the gold item. To read and interpret hallmark symbols on gold, you need to understand the meaning of each mark.  The first mark is the BIS logo, which signifies that the BIS has tested and verified the gold item. The second mark is the purity mark, which indicates the purity of the gold item in terms of karats. For example, if the purity mark is 22KT, it means that the gold item is 22 karats pure The third mark is the assay centre mark, which indicates the place where the gold item was tested and verified The fourth mark is the jeweller’s identification mark, which indicates the jeweller who sold the gold item. It is essential to note that the hallmark meaning may differ based on the region where the gold item was sold. Hallmark Symbols and Value of Gold The hallmark marks on gold are very important in establishing the item’s value. One of the most critical elements in assessing the worth of the gold is the purity mark, which shows the item’s level of purity. The more expensive gold is, the purer it must be. As a result, gold objects with higher purity marks sell for more money. The BIS hallmark, in addition to the purity stamp, raises the price of the gold item. The Bureau of Indian Standards, a governmental organisation, has inspected and verified the gold item, as indicated by the BIS hallmark. The BIS hallmark is a sign of quality and assurance of authenticity, which adds value to the gold item. FAQs Who issues Hallmarks? Hallmarks are typically issued by government or authorized assay offices. These offices are responsible for testing and verifying the quality of precious metals. What does the Hallmark symbol indicate? The hallmark symbol indicates that the metal has been independently tested and verified by an official assay office to meet specific standards of purity and quality. Why is the Hallmark symbol important? The Hallmark symbol is important because it assures consumers that the precious metal they are purchasing is of the stated purity and quality. It provides a level of trust and authenticity. 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