Tag: Customer Relationship Management

(i) Direct Re-Distribution Method:

Under this method, the costs of service departments are directly apportioned to production departments without taking into consideration any service from one service department to another service department. Thus, proper apportionment cannot be done and the production departments may either be overcharged or undercharged. The share of each service department cannot be ascertained accurately for control purposes. Budget for each department cannot be prepared thoroughly. Therefore, Department Overhead rates cannot be ascertained correctly.

(ii) Step Distribution Method:

Under this method the cost of most serviceable department is first apportioned to other service departments and production departments. The next service department is taken up and its cost is apportioned and this process goes on till the cost of the last service department is apportioned. Thus, the cost of last service department is apportioned only to the production departments.

(iii) Reciprocal Services Method:

In order to avoid the limitation of Step Method, this method is adopted. This method recognizes the fact that if a given department receives service from another department, the department receiving such service should be charged. If two departments provide service to each other, each department should be charged for the cost of services rendered by the other.

There are three methods available for dealing with inter-service departmental transfer;

(a) Simultaneous Equation Method,

(b) Repeated Distribution Method and

(c) Trial and Error Method.

(a) Simultaneous Equation Method:

Under this method, the true cost of the service departments are ascertained first with the help of simultaneous equations; these are then redistributed to production departments on the basis of given percentage. This method is preferable and is widely used even if the number of service departments are more than two. Due to the availability of computer it is not difficult to solve sets of simultaneous equations. Following illustration may be taken to discuss the application of this method.

Inter-Service Departmental Mutual Allocation System (Simultaneous Equation Method):

The method given above assumes that service is rendered by say, Repairs and Maintenance department to the Power House but not by the latter to the former. This assumption is not valid since service departments not only render service to production departments but also mutually. This fact should be considered while apportioning expenses.

Tender

Tender is nothing but a response to an invitation to offer to provide product or services at quoted prices and specified quality, but subject to specific conditions.

An invitation to tender is floated by the government undertaking, financial institution or a big corporation for different projects, when they want to purchase goods on a large scale, hire services or acquire/construct something but they are not able to deliver it on their own. For this purpose, third party suppliers are invited to bid and submit tenders.

The tender document is sent to prospective suppliers, to solicit information, to select the supplier on the basis of price, delivery terms and availability. The sellers who are interested in the request for proposal can respond to the request, within the deadline specified, by submitting their best offer in sealed covers, with the appropriate authority.

Tender is like a competition for a contract, where various prospective suppliers are requested to submit tenders, containing the price and quality of the material required.

The invitation is published in a vernacular newspaper of the concerned state or country, as it is a mandatory requirement, to maintain transparency in their operations.

Quotation

The quotation may be understood as a formal document of promise, given by the prospective supplier, to supply the stated goods or services needed by the buyer at the stated price under specific conditions. It comprises of terms of sale, payment and warranty, which includes the price decided to charge for the product or service, date, time and place of delivery, validity period of quotation.

Quotation helps the buyer in knowing the cost of goods or services, before making a purchase. In order to obtain the quotations (i.e. price for the required material), generally, tenders are floated by the government enterprises.

Under this method, a minimum quantity of stock is always to be held in stores as fixed asset. The minimum stock is known as base stock and it should not be issued unless there is an emergency. The stock in excess of base stock would be issued in accordance with one of the methods of pricing of issue e.g. LIFO, FIFO, Average, etc. Thus it is not an independent method in itself.

The base stock method is a valuation technique for the inventory asset, where the minimum amount of inventory needed to maintain operations is recorded at its acquisition cost, while the LIFO method is applied to all additional inventory. This approach is not acceptable under generally accepted accounting principles.

Advantages:

(1) As already said this method is ideal for processing industries like refineries, taneries, etc.

(2) Base stock is always valued at its cost of acquisition.

(3) The additional stock over the basic requirement can be valued under any suitable method.

Disadvantages:

(1) Base stock is valued at historical cost. It is treated as a fixed asset, but there is no scope of depreciating it.

(2) The disadvantages of FIFO or LIFO exist regarding the valuation of additional stock.

(3) This method is somewhat rigid. It requires necessary changes to cope with changes of production capacity and policy matters regarding stock.

Highest-In First-Out (HIFO) is a type of stock distribution and valuation method. The HIFO method follows the concept that stock or inventory with the greatest purchasing costs is first to be sold, used, or removed from the stock or inventory count. The use of HIFO is not recognized by GAAP (Generally Accepted Accounting Principles) and is hardly used in accounting.

This method is based on the assumption that closing stock should always remain at the minimum value, so materials with higher value are issued first and get exhausted at the earliest. But this method is not popular as it always undervalues the stock which amounts to creating secret reserves. This method may be used in case of cost plus contracts or monopoly products.

Realizable Price Method

Net realizable value (NRV) is the value for which an asset can be sold, minus the estimated costs of selling or discarding the asset. The NRV is commonly used in the estimation of the value of ending inventory or accounts receivable.

The net realizable value is an essential measure in inventory accounting under the Generally Accepted Accounting Principles (GAAP) and the International Financing Reporting Standards (IFRS). The calculation of NRV is critical because it prevents the overstatement of the assets’ valuation.

NRV and Lower Cost or Market Method

Net realizable value is an important metric that is used in the lower cost or market method of accounting reporting. Under the market method reporting approach, the company’s inventory must be reported on the balance sheet at a lower value than either the historical cost or the market value. If the market value of the inventory is unknown, the net realizable value can be used as an approximation of the market value.

Calculation of NRV:

The calculation of the NRV can be broken down into the following steps:

• Determine the market value or expected selling price of an asset.
• Find all costs associated with the completion and the sale of an asset (cost of production, advertising, transportation).
• Calculate the difference between the market value (expected selling price of an asset) and the costs associated with the completion and sale of an asset. It is a net realizable value of an asset.

Net realizable value (NRV) = Expected Selling Price – Total productions and Selling Cost

Standard Price Method

Calculate of a pre-determined price, and this price is kept constant for a definite time period. In this method of inventory valuation, we post all receipts into the stock ledger account and sales/ issues are valued at the pre-determined price (standard price). If there is any difference between the actual price and standard price, it is transferred to the material price variance account.

At that standard price materials issued are valued. For establishing standard price, the factors usually considered are:

(a) Due to possible changes in market conditions, apprehended changes in price.

(b) Depending upon the quantity to be ordered, the amount of discount that may be available from the suppliers.

(c) Expenses which are related to purchases i.e. freights & carriage, customs duty, godown expenses, packing, handling etc.

Difference, if any, between the standard price & the actual purchase price, is known as material variance. However, the variance which arises due to the difference between standard rate of purchase & the actual rate of purchase is known as rate variance. On the other hand, variance due to difference between total actual material cost & total standard material cost, there being no difference in rates, the variance is called usage variance. Either at the time of actual purchase or at the end of accounting period, the variance may be worked out. The variance is analyzed into causative reasons & by taking suitable measures its recurrence is prevented.

Advantages:

(a) Efficiency of the purchase department can be revealed.

(b) As all the issues are charged at a standard price, the method is easy to apply.

(c) Even if standard costing method is not applied in any industry, the method can be used there.

(d) By setting the standard price, control on material cost may be exercised by the method, which may be called the price that should be.

Disadvantages:

(a) At actual cost, the issues are not charged.

(b) Profit or loss on materials may be there.

(c) The purpose for which it is set may be spoiled by a very low or high standard price.

(d) Fixing a reliable standard price is difficult, since upon a number of unknown variable factors, the price depends.

Inflated Price Method

There are some materials which are subjected to natural wastage. Examples are: (1) material lost due to loading and unloading, and (2) timber lost due to seasoning. In such cases, the materials are issued at an inflated price (a price higher than the actual cost) so as to recover the cost of natural wastage of materials from the production.

In this way, the total cost of the material is recovered from the production. For example, if 100 tonnes of coal are purchased at Rs 75 per tonne and if it is expected that 5 tonnes of coal will be lost due to loading and unloading, the inflated issue price in this case will be Rs 78.95 (i.e. 100 x Rs 75/95) per tonne. With the actual issue of 95 tonnes of coal the actual cost of Rs 7,500 (100 tonnes purchased @ Rs 75 per tonne) will be recovered from production (95 tonnes @ Rs 7 78.95).

Specific Price Method of Stock Valuation:

When materials are purchased fora specific job or work order, they should be issued to that specific job or work order at their actual cost. This method is used where job costing is in operation and the actual materials issued can be identified.

Base Stock Price Method of Stock Valuation:

Each concern always maintains a minimum quantity of material in stock. The minimum quantity is known as safety or base stock and this should be used only when an emergency arises. The base stock is created out of the first lot of the material purchased and therefore, it is always valued at the cost price of the first lot and is carried forward as a fixed asset.

The specific identification method relates to inventory valuation, specifically keeping track of each specific item in inventory and assigning cost individually instead of grouping items together the manner of calculation that is typically done in the first in, first out (FIFO) and last in, first out (LIFO) methods.

The specific identification method is useful and usable when a company is able to identify, mark, and track each item or unit in its inventory. While the specific identification method can be utilized by larger companies with electronic tags or stickers with serial numbers that can be scanned into an electronic inventory tracking system, it is most common with smaller businesses that can easily identify or count items in their inventory.

Sometimes, the process can be done simply by an employee laying eyes on the items and marking them down on a piece of paper. In an age where technology and computer programs seem to run everything, the specific identification method is used in a similar way; however, inventory counts are recorded in a database.

Under the specific identification method, it’s also necessary that the cost of each purchased item can be determined on an individual basis. The cost must be easily associated with a number or other identifying feature of the item so that it can be directly connected to that item. Likewise, the item must be easily tracked, found, and available when the promise of sale is made.

The Pros and Cons of the Specific Identification Method

The primary drawback to the specific identification method is that its use requires a definitive ability to easily and consistently identify all the individual items within a company’s inventory, track their cost, and produce them upon sale or the promise of sale.

Both the cost of the item and the amount received for the sale of the item must be attached to a specific item with some form of a unique identifier that singles it out. The process is incredibly difficult for larger businesses such as big box stores to achieve because of the sheer volume that such companies move on a daily basis.

It is an issue that smaller businesses don’t generally face, which is why such companies are the ones that commonly utilize the specific identification method. One benefit of the method is a much higher degree of accuracy when it comes to the actual numbers of items in inventory and then, of course, a higher degree of accuracy when it comes to the numbers of dollars in earned income or profit, as well as any lost revenue if items are damaged, lost, or returned. The chances of losing or misplacing inventory under such a system are almost obliterated because of its accuracy.

Occasionally, it is used to identify specific securities. This method of identification allows investors to reduce or offset capital gains by picking a specific lot of securities to be used as the basis for a sale.

Obviously, this inventory method takes more work upfront than the alternatives. It might not be a reasonable use of time for a seller of t-shirts or candles. But it could be very useful to a seller of a wide variety of merchandise who wants a steady stream of information on what products or styles are in demand, what’s not selling, and what needs restocking.

In addition, it has practical uses in accounting. It makes it easy to calculate the ending inventory cost. That figure tells the company the total annual expenses associated with all unsold goods in its inventory. It also provides a highly accurate figure for the cost of goods sold.

Advantages

• The first and most important advantage of using the Specific identification method is that it helps the business keep track of every item of the inventory used in the company from the time such inventory comes into the business till the time it goes out of business.
• With the use of the specific identification, method cost is assigned to every item used in the company individually. In the LIFO inventory and FIFO methods, the cost is assigned to the inventory by grouping them based on specified criteria. It ensures a high degree of accuracy in the valuation of closing stock at the end of a particular period and the valuation of the cost of goods sold during the period.

Disadvantages

• As it tracks every item of the inventory used in the company from the time such inventory comes into the business until the time it goes out of business is kept, it requires lots of effort and time from the person responsible for such tracking.
• If the companies use the Specific identification method, then under those situations, the company’s net income can be manipulated easily by the company’s management.
• As the company has a vast number of transactions, it is difficult to identify the purchased products, so this method is rarely used. It is restricted to businesses dealing with high-value items.

Example

Take a retailer for example. Retailers order tons of inventory from wholesalers and manufacturers on a regular basis. Palates of goods can be delivered on a daily basis. Let’s assume an electronics retailer ordered 10 computers. Each computer is slightly different and can be identified by the serial number. The receiving department can unpack the shipment, scan each computer into the system, and assign the total invoice cost to the individual goods.

This system is extremely accurate because each piece of inventory can be tracked separately. There are no estimates involved which make the inventory and cost of goods sold numbers more accurate on the financial statements as well.

Even though this system is extremely accurate, few companies actually use it. There are two main problems with the specific identification method. The first main problem is that the system takes a lot of time and effort. Each piece of inventory must be separately scanned and entered into the system. The second reason is that most goods can’t be separately identifiable. A huge palette of homogenous goods is most like indistinguishable.

Most companies use FIFO or LIFO inventory valuation methods.

A cost accounting system is used by manufacturers to record production activities using a perpetual inventory system. In other words, it’s an accounting system designed for manufacturers that tracks the flow of inventory continually through the various stages of production.

Precautions

The Technical Details

Technical operations of the concern and whether production is more important than selling or vice versa should be kept in mind. Obviously more attention must be paid to the more significant factor.

Objects:

What are the objects which the management wants to achieve and what sort of information does it need for the achievement of its objectives? Information about costs meant for fixing prices would be quite different from that intended to reveal efficiencies or inefficiencies in operations or that required to make decisions on a rational basis.

The Product

The nature of product should be considered to decide type of cost system. For example, if materials used are insignificant, an elaborate system of materials control will not be necessary.

Type of Materials

The type of materials available and the timing of their supplies together with the storage problem, should also be taken into consideration.

Factors

Factors that are or are not amenable to control should be considered. Attention has to be paid to controllable factors. For instance, if a particular method of packing is prescribed by law, it is no use trying to think of an alternative.

Type of Labour

The type of labour which is required and the methods of their remuneration should also be kept in mind.

Management

The character of management itself and the decision-making process should also be taken into account. Modern managements usually need detailed information. The information flows will have to be designed with reference to the sources and end uses of the information. For example, if decisions are taken by a person who refuses to divulge any information, the system must keep this in view.

Business Peculiarities

Any peculiarities of the business, that there may be, must be kept in view. For instance, if purchases of particular item are to be made only from one particular source or firm, the costing system need not build an adequate purchase procedure; it should concentrate on the proper use of the concerned item.

Use of Financial Books

The possibility of using financial books and procedures should also be kept in mind. As stated above, cost accounting is to be treated as an investment and, therefore, all existing useful procedures, books and records should be used. For example financial accounts need adequate record of purchases and wages. With a little change, these can be made to serve the needs of Cost Accounting also. As far as possible, cost records and financial books should be well coordinated, even fully integrated.

Choice of Unit

The choice of the unit regarding which costs have to be obtained should also be considered. For example, in case of steel, costs are ascertained per tonne of steel and in case of cotton textiles, the unit is kg. of yarn or cloth. In case of motor transport the cost will be found per bus-kilometre or passenger-kilometre or sometimes tonne-mile. These are known as units of cost and it is necessary to choose a proper unit neither too big nor too small.

Full Discussion

Above all, the system should be designed after a full and frank discussion with all those who will be involved.

Anti-Competitive Agreements (Section 3)

An agreement includes any arrangement, understanding or concerted action entered into between parties. It may or may not be in writing. Anti-competitive agreements under competition law are broadly classified into two categories, the Anti-competitive Horizontal Agreement and Anti-competitive Vertical/Agreement.

Anti-Competitive Horizontal Agreements-Section 3(3)

Horizontal Agreements are those agreements where enterprises engaged in identical or similar trade of goods or services. When enterprises collude amongst each other to distort competition in the markets, such agreement is presumed to have an appreciable adverse effect on competition and thus, shall be void. The following four categories of such agreements amongst competitors are presumed to have AAEC-

• Agreement to fix price;
• Agreement to limit production and/or supply;
• Agreement to allocate markets;
• Bid rigging or collusive bidding.

However, such presumption is rebuttable.

Vertical Agreements-Section 3(4) Vertical Agreements are those agreements which are entered into by enterprises at different stages or levels of production, distribution, supply, storage etc. Such vertical restrains include:

• Tie-in arrangement;
• Exclusive supply/distribution arrangement;
• Refusal to deal; and
• Resale price maintenance.

Imposition of reasonable conditions as may be necessary for protection of intellectual Property Right (IPR) which are listed under Section 3(5), is generally not to be treated as volatile of the Act.

They are however, subject to scrutiny by the Commission to decide whether such conditions are reasonable and necessary to protect IPR.

Abuse of Dominant Position (Section 4)

Dominance refers to a position of strength which enables an enterprise to operate independently of competitive force in the market or to affect its competitors or consumers in its favour. Dominant position of an enterprise itself is not prohibited; however, if the enterprise by virtue of having dominant position in the relevant market abuses its dominance then the same stands prohibited. Abuse of dominant position impedes fair competition between firms exploits consumers and makes it difficult for the other players in the market to compete with the dominant undertaking. Abuse of dominant position covers:

• Imposing unfair condition or price, including predatory pricing;
• Limiting production/market or technical or scientific development
• Denying market access, and
• Making conclusion of contracts subject to conditions, having no nexus with such contracts; and
• Using dominant position in one relevant market to gain advantages in another relevant market.

Anti-competitive agreements and other conduct

Scheme of the Competition Act

The Competition Act is based on the “effects doctrine” and grants the CCI jurisdiction over any agreement, abuse of a dominant position or combination that takes place outside of India as long as such agreements, conduct or combination have or are likely to have an AAEC in India. This is a significant development in the new competition law regime since the erstwhile MRTP Commission did not have extra-territorial jurisdiction.

Anti-competitive agreements

The Competition Act seeks to regulate two kinds of agreements:

(a) Anti-competitive agreements between/amongst competitors (horizontal agreements)

(b) Anti-competitive agreements between enterprises or persons at different stages or levels of the production chain (vertical agreements).

Under the Competition Act, certain kinds of horizontal agreements (described in the next subsection) are presumed to cause an AAEC in India. The presumption does not mean that all alleged horizontal agreements are necessarily anti-competitive; it remains open to the parties entering into such an agreement to provide evidence that their agreement does not result in an AAEC and rebut the presumption. On the other hand, such presumption does not apply to vertical agreements. Vertical agreements are usually permitted unless it is established that they cause, or are likely to cause, an AAEC within India. The Competition Act provides an exhaustive list of horizontal agreements that are presumed to cause an AAEC in India, as well as an inclusive list of vertical agreements that may be prohibited depending upon their effect on conditions of competition within India.

Cartel conduct

The Competition Act sets out a list of horizontal agreements that are presumed to cause an AAEC within India. In other words, once it is established that such an agreement exists and the agreement results in any of the conduct listed, the CCI may, on the basis of the presumption that they cause an AAEC, seek to prohibit them. These four types of agreements, which are also known as “cartel” arrangements, are set out in this list:

• Price-fixing agreements, i.e., agreements between competitors, which directly or indirectly have the effect of fixing or determining purchase or sale prices;
• Agreements between competitors, which seek to limit or control production, supply or markets;
• Market-sharing agreements between competitors irrespective of the form that they may take; this includes market sharing by way of product allocation, allocation of geographic markets or source of production; and
• Bid-rigging agreements, i.e., agreements between competitors, which have the effect of eliminating or reducing competition for bids or adversely affecting or manipulating the process of bidding.

Mergers and Acquisitions

Any combination, whether a merger, an acquisition, or an amalgamation, must adhere to the provisions of Section 5 and Section 6 of the Act and needs prior approval from the CCI. The two requirements are the filing of such mergers and combinations and the de minimise test. The Act also gives jurisdiction to the CCI over all the combinations, even those outside the country.  A notification prior to the combination is required within 30 from the board of directors showing approval in the case of mergers and amalgamations or within 30 of the execution of such an agreement which shows the intention to acquire a business if it is an acquisition. The failure will pave the way for an investigation as authorised by the Act to the CCI.

However, Schedule 1 of the combination regulations provides certain exemptions where a pre-notification to CCI is not necessary. These are:

• Acquisition made only as an investment and where the acquirer does not hold 25% of the shares or more directly or indirectly,
• Acquisition of additional shares which is not more than 5 % in a financial year and where the acquirer holds more than 25% but less than 50% of the shares or voting rights prior to or after such acquisition.
• An acquisition where the acquirer already holds more than 50% of the shares of the company to be acquired except where the transaction is from joint control to sole control.
• Renewed tender where the notice has already been filed with the Commission.
• Acquisition of raw materials, stock-in-trade, spares etc. in the course of business.
• Acquisition by a person in the same group except if the business is jointly controlled and they do not belong to the same group.
• A merger or amalgamation where one has more than 50% of shares in another and the transaction is not from joint control to sole control.

Penalties and liabilities under the Competition Act, 2002

The Act also provides provisions for penalties and gives the CCI the power to impose such penalties. In the case of anti-competitive agreements, it can fine up to 10% of the average turnover of the last 3 financial years. For cartel agreements, the fine is equal to the profits made in 3 continuous years of such agreement. It can also order desist or ask to modify the agreements. The Act also provides penalties for non-compliance with the order of the Commission under Section 42 and false information under Section 44 of the Act. The Act also empowers CCI to impose lesser penalties under Section 46 of the Act.

Articles 5 to 11 of Part II of the Indian Constitution deals with citizenship, defining a citizen as a person of Indian ancestry or a family member having Indian ancestry. Article 10 deals with the continued citizenship of foreigners in India, subject to any further laws adopted by the legislature. The Indian constitution recognizes just one citizenship across the country and does not allow for multiple citizenship.

It also states that a foreign citizen can get Indian citizenship through the Naturalization procedure (after having lived in India for at least 14 years) and foreigner registration with the FRRO (Foreigners Regional Registration Officer) or FRO (Foreigners Registration Officer). The Indian law follows jus sanguinis (citizenship by blood) as opposed to jus soli (citizenship by birth).

Immigrant rules and restrictions:

Certain laws have been enacted to streamline the process of foreigners obtaining citizenship, including:

• Foreigners entering India are obliged to get visas from India Missions under the Passport (Entry in India) Act, 1920.
• The statute also specifies which papers must be submitted during their lawful journey in order to be admitted to the nation.
• The Foreigners Statute, 1946 – This act governs foreigners’ admission and stay within Indian boundaries till they leave.
• The Foreigners Registration Act of 1939 and the Foreigners Registration Rules of 1992. Certain foreigners who remain longer than their visa period is required to register with the Registration Officer.

Types of Visa

The proper Indian diplomatic consular or passport authority i.e. Indian Embassy/High Commission located in various countries issue different types of visa to foreign nationals depending upon their proposed activities in India.

Below is an illustrative list of visas granted in order to enter India basis the purpose to visit India:

Registration of foreigners in India:

• Foreigners travelling for a lengthy period (more than 180 days) on a student visa, work visa, research visa, or medical visa must register with the Indian Missions/FRRO/FRO within 14 days of arrival, with the exception of Certain sorts of nationalities are restricted from participating in this procedure.
• Foreigners entering India on any form of visa other than the ones listed above are not need to register unless they plan to stay in India for more than 180 days. In such circumstances, registration must be completed well before the 6-month term expires.
• Foreigners above the age of 16 are needed to register with the relevant Registration Officer in person or through an authorized agent. Minors under the age of 16 do not need to register.
• Foreign visitors with an Entry(X) visa, such as dependent visas and business visas, who plan to stay for more than 180 days must also register.
• Visitors with journalist visas and other visas that do not have any specific endorsements must register with the FRROS/FRO. The visas applied for registration will be stamped at all Indian missions.

The Patent is granted by the sovereign of the country for the Invention claimed by the inventors which gives him/her territorial rights for excluding others from making, using, selling, and offering to sell or for importing. To get the granted Patent, which is essential for the enforceability, every country has its criteria to judge the invention. Usually, Novelty, Inventive Step/Non-Obviousness and Industrial Applicability are the common criteria for judging an invention.

Conditions:

Inventive Step:

The invention must have some creative input from the inventor. It should be something which is not expected by the person skilled in the art. If an inventor is solving some technical problem by inventing something and if the person skilled in the art who is from the same field is providing the same solution by using his acquired knowledge or by taking teaching, suggestion or motivation, in that case the technical solution provided by the inventor will not be considered as inventive in nature.

Novelty:

The invention must create new knowledge or product or process. It should not be anticipated by the document, granted Patent, published Patent, non-Patent literature or in any form which is already available in the public domain. It must be different from what is already known.

Industrial Application:

Patents are granted to ensure that the inventor can exploit his/her invention freely, without the fear of competition. In this context, it is necessary that the invention is capable of being used and has industrial application. An invention should be used or manufactured in the form of a product or process.

Non-Patentable Subject matter:

In addition, an Invention must relate to the patentable subject matter. Every country has its criteria to judge the Patentable subject matter. In India, the list of non-Patentable subject matters is specifically mentioned.

For example: Frivolous invention or anything which is contrary to the natural laws, mere discovery, abstract theory, discovery of living or non-living things, discovery of new form of known substance, mere admixture, mere arrangement or re-arrangement, method of horticulture/agriculture, surgical process, mathematical/ business method, algorithm or computer program per se, mere scheme or rule, topology of integrated circuit, literary or artistic work, presentation of information, traditional knowledge or an invention related with atomic energy are not Patentable subject matter.