Philosphy Term Paper Example | Topics and Well Written Essays - 1750 words

Philosphy - Term Paper Example Euthanasia is considered here as a moral evil, and should not be permitted by law, even in the cases specified in the standard permission. Euthanasia or assisted suicide can be any action aimed at putting an end to life of any person, to meet his/her own accord, and executed by a disinterested person. The term â€Å"euthanasia† was first coined by Francis Bacon in the 17th century for the definition of â€Å"easy death†, and in the 19th century it has come to mean â€Å"to kill someone out of pity.† This is a question of premeditated murder in order to alleviate unnecessary suffering. In this case, there is no more ambiguous word than â€Å"euthanasia.† The very idea of euthanasia was born a long time ago. But from the time of Hippocrates to the present day traditional medical ethics includes a ban: â€Å"I will not give a lethal drug to anyone if I am asked, nor will I advise such a plan†¦Ã¢â‚¬  (The Hippocratic Oath) More recently, however, doctor s seem increasingly ready to come to this practice, at least when the patient himself asks about death. How this tendency should be considered? Is it a release from outdated restrictions or a certain permissiveness, which is both wrong from a moral point of view, and dangerous in practice? Literally, the term â€Å"euthanasia† is translated as a â€Å"good death† but the term has come to signify not so much â€Å"good† death itself, as its infliction. â€Å"Euthanasia† can be defined as â€Å"the killing of another person for his alleged good† with his consent (voluntary euthanasia), or without consent or even against the will of this person (â€Å"involuntary† and â€Å"forced† euthanasia). â€Å"Killing† means an act or admission of action, chosen with the aim of depriving a person of life, i.e., irrespective of whether direct or indirect impact. Here there is some terminological confusion (in the opinion of some researchers, deliberately provoked by supporters of euthanasia) which occurred under the influence of various kinds of statements concerning understanding of this term, putting on the same level â€Å"letting die† (negative or passive euthanasia) and â€Å"assisting to die† (active or real euthanasia). This confusion is not harmless; it is maintained deliberately in order to bring doctors and public opinion to a false dilemma: either you are humane and able to sympathize with your neighbor, and thus have to step over the forbidden (cause death); or you put the abstract dogma above simple human sympathy, and thus will not stop even before going to prolong the needless suffering which you yourself would not have survived (Keown, 2002, pp. 9-15). In which case we can speak of assisted suicide or euthanasia? Assisted suicide means only intentional murder. In one case, the life of a hopelessly terminally ill person is taken away, in order to save him/her from unnecessary suffering â₠¬â€œ either through direct intervention (e.g., injection of barbiturates), or leaving a person to die by stopping to feed the patient. In another case, the life of a newborn child with severe physical disabilities is taken, when the child is directly killed or condemned to certain death, e.g., by stopping the supply of food and basic treatment only in order not to inflict new pain to his/her parents. Hence, euthanasia or assisted suicide is itself put on the level of intentions: the term euthanasia is used only when there is an intention to take the life of the person or to speed up

Literature Review: Treatment and Management of Pain

Literature Review: Treatment and Management of Pain INTRODUCTION The aim of the wise is not to secure pleasure  but to avoid pain -Aristotle The word pain is derived from the Greek word poine, which means penalty or punishment. Pain is a sensory experience associated with actual or potential damage of tissue,with physiological and psychological responses. Pain is a personal experience and varies from person to person. It is manifested in verbal and nonverbal behaviours, physiological responses like pulse rate, respiratory rate, blood pressure, emotional and spiritual reactions(Nursing clinics of America,2002). Inadequate treatment of both acute and chronic pain is widespread throughout medical surgical wards, intensive care units, emergency departments and in general practice. This neglect is extended to all age groups, from neonates to the elderly. In September 2008, the World Health Organization estimated that nearly eighty percentage of the population in the world has either insufficient or no access to treatment for severe and moderate pain. Every year millions of people around the world, suffer from pain without treatment. Reasons for proper pain management failure include cultural, religious, societal, and political attitudes, including acceptance of torture(Taylor et al.,2008). When surveyed 21% to 90% of adults expressed some about the pain associated with the needle based procedures. Up to 90% of young children shows serious distress during vaccination. This general level of anxiety can be severe, and is termed as injection phobia. This phobia can result in syncopal attacks with significant clinical impact (Yael et al.,2003). In hospital practice intravascular lines are used for various purposes like recording pressure and to administer drugs, fluids and to draw out blood. Pain inflicted by the insertion of cannula into the skin is a significant concern. Effort should be made to assess and manage acute pain. As, by doing so, nurses can reduce pain, increase patient comfort , satisfaction and improve patient outcomes (Jacobson, 1999). Research evidence shows that cutaneous stimulation is an independent nursing intervention to minimize patients pain. Gate control theory clearly explains the effect of cutaneous stimulation. Cutaneous stimulation modalities can be clubbed with acupressure to increase its effectiveness in pain management. Research studies have highlighted the fact that cryotherapy is equally effective and important in alleviating or minimizing pain as a cutaneous stimulation technique (Sabitha P.B, et al.,2008). The analgesic effects of cutaneous stimulation (pressure, massage, vibration, heat, cold) are thought to be caused by activation of large A-beta fibers and inhibition of smaller A-delta and C fibers, thus closing the gate to pain impulses. The exact mechanism by which this gating occurs has not been established, but it may be through endorphin release (Ruth,2009). NEED FOR THE STUDY Research Studies reveals that, among nursing diagnosis pain constantly ranks the highest position. Nurses often have the closest contact with patients on a daily basis. They are the health care providers most directly responsible for the overall management of pain. Nurses play a pivotal role in pain assessment, pain intervention, monitoring the effects of treatment and communication of information about pain management (Keela A.Herr, et al.,1992). The complementary therapies are used to relieve the symptoms of pain. These include relaxation technique, visual imagery, cryotherapy, massage, aromatherapy etc. Increasingly complementary therapies are attracting attention in contemporary nursing practice. These interventions are suitable for procedures like injections, venepuncture, that cause acute transitory pain (Barbara, 2000). Cold application relaxes muscle and muscle contractility, vasoconstriction decreases capillary permeability, decreases blood flow, slows cellular metabolism, decreases pain by slowing nerve conduction rate and blocking nerve impulses, decreases edema by reducing capillary permeability (Barbara kozier, 2006). The pain related to minor invasive nursing procedures can be dealt with non-pharmacological measures than pharmacological measure. The pharmacologic measures like local anesthetic spray, eutectic mixture of local anesthetic (EMLA) have long term effects, which is undesirable. Also its cost effect should be kept in mind, as these simple but essential procedures are repeated for the same person for many times. Hence non-pharmacological measures can be the choice for relieving or preventing such minor invasive pain, like venepuncture pain (Saju T.P,2009). A study conducted to find out the effects of two non-pharmacological pain management measures for IM injection pain recommended to use cold therapy and distraction to decrease pain intensity. The first group received local cold therapy, the second group received distraction and the control group received only routine care. The results shows that average pain intensity in local cold therapy, distraction and control groups was 26.3, 34.3 and 83.3 respectively. The findings indicate that pain intensity was significantly higher in the non-interventional group than the interventional groups. This study supports the efficacy of non-pharmacologic pain management methods (Hasanpour M et.al.,2005). The large intestine energy meridian is an acupressure point located on the backside of the hand between index finger and the thumb. Largeintestine energy meridian point can be used for relieving pain in the scapula, arm and shoulder, rigidity of the neck, eye diseases and also in the treatment of other disorders like constipation. The large intestine energy meridian pathway is bilateral. Considering the anxiety due to painful procedures such as venepuncture, as well as the unpleasant feelings, the investigator felt that application of cryotherapy to the skin would decrease the pain-related responses associated with venepuncture. This study was therefore undertaken to asses the effect of cryotherapy on the large intestine energy meridian point (li4), during intracath insertion to reduce the perception of pain and variation in physiological responses like pulse rate, respiratory rate and blood pressure. CHAPTER II REVIEW OF LITERATURE Review of literature is a key step in research process. It refers to an extensive, exhaustive and systematic examination of publications relevant to the research project. Nursing research may be considered as a continuing process in which knowledge gained from earlier studies is an integral part of research in general. Literature review refers to the activities involved in searching for information on a topic and developing a comprehensive picture of the state as knowledge on that topic (Polit and Hungler,1993 ). Therefore the investigator studied and reviewed the related literature to broaden the understandings about the topic to gain insight into the selected problem under study. The literature has been reviewed under the following headings: SECTION A: Literature regarding pain and changes in physiological parameters during venepuncture. SECTION B: Literature regarding large intestine energy meridian point and pain. SECTION C: Literature regarding effectiveness of cryotherapy on pain and physiological parameters. A quasi experimental pre test post test control group study was conducted to assess the effectiveness of vibratory audio visual stimulation to reduce acute evoked procedural pain experienced by the individuals, during invasive procedures in a selected health centre. Convenient sampling technique was used to select 80 persons who were receiving IM injection. Among the participants 95% expressed a reduction in pain due to vibratory audio visual stimulation,15% said that they had not experienced any reduction in pain. Results of the study suggested that vibratory audio visual stimulation was effective in reducing acute evoked procedural pain (Saju T.P,2009). A randomized, controlled study, in a convenience sample of 92 patients in the emergency department who required peripheral cannulation as part of their evaluation were enrolled in the study. All the subjects answered questionnaires pre and post IV placement and rated pain intensity during procedure on a 100 millimeter visual analogue scale. Participants in the study included 47(51.1%)of patients received the anesthetic spray and 45(48.9%) were randomly assigned to control group and had their IV line placed in a standard method. The mean pain score in the study group was 27 millimeter and 28 millimeter in the control group (p=0.934). Results revealed that anesthetic spray was an effective intervention in reducing pain during intravenous insertion (Hartstein B.H,et al.,2007). A crossover single blind experimental study conducted on  effectiveness of acupressure to reduce pain in IM injection. Each  subject received an injection with acupressure applied to one buttock and an injection without acupressure to the other buttock or vice versa. The perception of pain was measured on a visual analog scale. Among 64 patients, 32(50%) were female. The mean score for perceived pain intensity for acupressure injection was 3+-2 and the mean score for the injection without acupressure was 5+-2. Results revealed that acupressure was effective in reducing IM injection pain (Alavi N.M,2006). A prospective randomized clinical trial to evaluate the effect of a Valsalva manoeuver, which stimulates the vagus nerve, on perception of pain during peripheral venous cannulation in adult patients. Among 110 patients scheduled for elective surgery, half of them underwent venepuncture during a Valsalva manoeuvre and the other half underwent venepuncture without performing a Valsalva manoeuvre. The numerical rating scale score was 1.5+/-1.2 for Group A and 3.1+/-1.9 for Group B, the difference being statistically significant (P Pain management is in the purview of all health professionals, specially nurses and is an important component of comprehensive nursing care, since it is the patient and nurse who faces the pain alone. Although most of the nurses have a commitment in pain reduction, far fewer work for alleviation. Ignoring patients pain may be causing harm. Unrelieved Pain can cause cell, tissue damage and even death. Health education on pain management for health professionals at all department levels have been noticed as an important measure towards changing ineffective pain management practices (Holleran R.S,2006). Needle phobia is a term used to describe an anticipatory fear of needle insertion. If pain and anxiety are poorly managed, there can be significant negative consequences. The memory of traumatic venepuncture experiences can lead to extreme anxiety and physiological responses such as venous constriction . Some children and young people may have been conditioned by the fears of relatives or friends concerning needle procedures(Thurgate C. Heppell S, 2005). A quasi experimental design was adopted to obtain data from 86 younger (between the age group of 25-55) and 89 older (between the age group of 65-94) volunteer samples. Subjects responses to experimentally induced thermal stimuli were measured with following pain scales: vertical visual analog scale,21-point numerical rating scale, verbal descriptor scale,11- point verbal rating scale and faces pain scale. For discriminating different levels of pain sensation all the five scales were effective. The most preferred scale to represent pain intensity in both cohorts was the numerical rating scale, followed by verbal descriptor scale (Frana Benini,M.D,2004). Pain is a phenomenon that we experience to a greater or lesser extent, and the associations between blood pressure and pain are potentially of great interest . It is well recognized that pain can raise blood pressure acutely. Acute pain leads to generalized arousal and increased sympathetic nerve activity. Blood pressure increase during the application of physical pressure to the nail beds or the skin of the cheek, or during electrical stimulation of a digital nerve. Various studies found that inflated cuff leads to forearm ischemia and increases the degree of pain, which correlates with the increase in blood pressure (Pickering G.Thomas,2003). SECTION B:Literatures regarding large intestine energy meridian point and pain. The large intestine energy meridian point is referred to as LI4 or Hoku. The energy meridian pathway is bilateral and begins in the surface of the skin at the root of the index fingernail. It courses through the arm and hand , and the outward end of the shoulder blade is crossed. Then the meridian leaves the skin surface to connect with the lower part of the lung and transverse colon. It then returns to the skin surface at a point under the chin. From that point, the meridian is again buried deep within the area referred to as the double chin. It follows the lower row of dental roots, passing then to the upper line of teeth roots, crossing the front of the mouth to emerge on the skin surface and the facial point next to the nostrils (Chandramita Bora,2009). A randomized controlled trial was conducted on 60 primiparous women who were randomly assigned in two groups (n = 30): ice massage (treatment) and sand bag group (control). The severity of the basal pain was measured at the beginning of active phase (4 cm cervical dilation) based on Visual Analogue Scale (VAS). Then, after two groups received intervention, the severity of the labor pain in 4, 6, 8 and 10 cm cervical dilation was measured. In the case group, the crushed ice twisted in a terry bag was rocked on the web of skin between thumb and forefinger. The massage was carried out in large intestine energy meridian point throughout three contractions. The sand bag tactile massage in large intestine energy meridian point was served in the control group. The data were analyzed using SPSS software and descriptive analysis using Mann- Whitney, à Ã¢â‚¬ ¡ 2, paired and independent t tests and P A one-group, pre test, post test study conducted to evaluate the the use of ice massage on acupressure energy meridian point large intestine 4 (LI4) to reduce the labor pain. The pain was measured using McGill Pain Questionnaire (MPQ) and 100-mm Visual Analog Scales (VAS). Participants noted a pain reduction mean on the VAS of 28.22 mm on the left hand and 11.93 mm on the right hand. The post delivery ranked McGill Pain Questionnaire dropped from distressing to discomforting. The study results suggest that ice massage is a safe, noninvasive, nonpharmacological method of reducing labor pain (Waters L.Bette, et al.,2003). A study using ice massage for reducing labor pain was carried out by a researcher among twenty women on their admission to the labor and delivery unit at Florida. Ice massage of the energy meridian LI4 was performed during each contraction and was carried out over a 30-minute period. Data from the Visual Analog Scale (VAS) showed a mean reduction in pain of 25.15. The reduction of pain was statistically significant despite the small number of participants. The study results suggest that ice massage is a safe method of reducing labor pain (Naomi lester, et al., 2003). A one group repeated measurement post test study was aimed at identifying the effect of cutaneous stimulation in large intestine energy meridian point on reduction of arteriovenous fistula puncture pain among forty five hemodialysis patient. First the arteriovenous fistula puncture pain of control group was measured, and then the arteriovenous fistula puncture pain of experimental group (with cutaneous stimulation) was measured using visual analogue scale and objective pain behaviour checklist. Analysis of data was done by use of paired t-test, t-test, ANOVA and Pearson correlation coefficient. The results concluded that the subjective pain score of arterial line (paired t = -0.28, p = 0.77) and the subjective pain score of venous line (paired t = 2.61, p = 0.01). The cardiopulmonary signs of arteriovenous fistula puncture pain in experimental period was (pulse paired t = -0.8, p = 0.42; systolic BP paired t = 0.98, p = 0.33; diastolic BP paired t = 0.43, p = 0.66).Results revealed t hat cutaneous stimulation in large intestine energy meridian point was effective in reducing arteriovenous fistula puncture pain(Kanho Taehan,2001). A study in which patients having acute dental pain were treated with ice application on largeintestine energy meridian point of the hand on the same side of the painful region. Ice massage was administered by inserting ice cubes into wet gauze pad and gently massaging the skin around the large intestine energy meridian point. When the patient stated that the area is felt numb or after a period of 7 minutes whichever, occurred first, the massage was stopped. Control group received tactile massage alone. McGill pain questionnaire was used to measure the pain intensity of the patients.. Ice massage reduced the intensity of dental pain by fifty percentage or more in most of the patients, and reduction in pain were significantly greater than those produced by tactile massage alone (Melzack Ronald, et al.,2000). SECTION C : Literatures regarding effectiveness of cryotherapy on pain and physiological parameters. A study was conducted to determine the effectiveness of cryotherapy on arteriovenous fistula puncture pain in hemodialysis patients. A convenient sample of 60 patients (30 in experimental and 30 in control group) who had undergone hemodialysis through AVF, was assessed using randomized control trial. Both the objective and subjective pain scoring was performed on two consecutive days of hemodialysis. The tools used were a questionnaire assessing demographic data, an observation checklist for monitoring objective pain behaviour, and a numerical pain intensity scale for subjective pain assessment. The objective and subjective pain scores were significantly (p=0.001) reduced within the treatment group than the control group. Results revealed that cryotherapy was effective in reducing arterivenous fistula puncture pain in hemodialysis patients (Mahajan S, et al.,2008). A quasi experimental study to assess the effectiveness of hot fomentation versus cold compress for decreasing intravenous infiltration in patients admitted in a selected hospital in Pune . The sample size was 60 and data collected with an observational checklist and behavioral pain scale. The pre treatment mean score of degree of infiltration was decreased from 7.1667 to 0.7071 in hot fomentation and from 6.9333 to 0.7571 in cold fomentation. The findings indicate that the hot fomentation and cold compress both are effective in treatment of intravenous therapy related infiltration (Anjum shabana,2007). A quasi-experimental study to determine the effect of local refrigeration applied to skin prior to venepuncture on pain-related responses in 80 school-age children who got admitted in the emergency ward in the pediatrics center in Iran. Subjects were selected by purposive sampling and were divided into two equal groups: test and control. In the test group the physiological responses were measured prior to venepuncture. Then the skin on the area of venepuncture was refrigerated by an ice bag for 3 minutes and the procedure is performed immediately. After five minutes of the procedure the physiological responses, behavioural responses and subjective responses were measured. In terms of the physiological responses before and after the procedure in the experimental and control group, there was no significant difference (p=0.07) between the two groups. There was a significant difference (p=0.0011) between the test and control groups with regard to the behavioural responses to the painful procedure.There was also a significant difference (p=0.0097) in the subjective data in the two groups after venepuncture.Results revealed that the local refrigeration was effective in reducing venepuncture pain (Movahedi Fakhar Ali,et al.,2006). An experimental study to assess the effectiveness of ice application on the treatment zone prior to type -A botulinum toxin treatment on the pain during injections . Totally, twenty four patients who underwent botulinum type-A toxin in upper face for esthetic purposes were undertaken in the study. Ice application was done five minutes prior the injections on the right lateral orbital zones of the patients, and on their left sides, toxin were injected without applying ice. The average visual analog scale values indicating the pain that the subjects felt in their right and left sides were found as 1.1 and 5.9, respectively. Results revealed that ice application is effective in reducing pain during injections (Sarifakioglu N,2004). A study was conducted to evaluate the effect of the application of cold or hot on the pricking pain sensation based on autonomic responses. Electrical stimulations were applied to subjects arms as an artificial pricking pain, the skin blood flow and skin conductance level at the tip of the finger were measured. Pain was assessed using visual analog scale. Pain stimulation produced a significant rise in skin conductance level and a significant decrease in blood flow. Cold application to the stimulation site using an ice-water pack decreased blood flow and skin conductance responses and sensation of pain. Application of heat, by hot water bottle resulted in a significant rise in pain sensation . The results suggested that cold application promotes relief of pricking pain sensation and suppress the autonomic responses, and the application of heat has no such effect (Saeki Y,2002). A one group pre test post test experimental study to evaluate the effect of cutaneous stimulation (cryotherapy) on pain reduction in Emergency Department patients . Second objective was to identify the effect of cutaneous stimulation on blood pressure and heart rate. Potential factors that could influence the dependent variables such as age, gender, educational level, location of pain, and site of cutaneous stimulation were tested. All 50 samples were treated with cutaneous stimulation to relieve pain. After cutaneous stimulation, subjects reported significant reduction in pain, and demonstrated decrease in heart rate, and blood pressure readings. The most effective site of cutaneous stimulation was contralateral to the pain. Age, gender and educational level had no significant effect. The results of this study provide empirical evidence that cutaneous stimulation effectively reduces pain, heart rate, and blood pressure (Sylvia M. Kubsch,2002). A study was conducted to evaluate the effectiveness of local dry cold application on the bruising, haematoma and pain at the subcutaneous low molecular weight heparin injections site. The researcher selected sixty three patients who had received 2 x 20 milligram enoxaparine and divided the samples into four groups. In the first group, cold therapy was not given. Cold was applied to the injection site for five minutes before the injection in the second group, and in the third group five minutes after the injection. In the fourth group, it was applied to the injection site for five minutes pre and post injection.After each injection, the patients pain intensity and duration were measured, and the occurance of bruise and haematoma were monitered at 48 and 72 hours after the injection. Results showed that haematoma was absent at the injection site of all subjects. The subjects pain perception was significantly reduced with the application of ice (Kuzu N, et al.,2001). In a paired clinical trial, the effectiveness of ice in reducing the pain of intravenous catheter placement was assessed in 28 adult volunteers. An ice pack was placed over one arm for 10 minutes, followed by insertion of an 18-gauge angio catheter in both arms. Patients recorded their pain assessment after each venepuncture on a previously validated 100-mm visual analog scale and identified their preferred method for the procedure (pretreatment with ice or no pretreatment). The mean pain score for catheter placement on arms pretreated with ice was 27.5  ± 15.9 mm; the mean pain score for the control arms was 34.2  ± 21.6 mm (P = 0.17).Results revealed that application of icepack was an effective method in reducing pain of intravenous catheter placement. Future studies should examine whether ice is effective at reducing pain from other more painful procedures and whether the response to ice is gender-related (Richman P B, et al.,2000).

Life After Football :: Personal Narrative Writing

Life After Football Experiences change our lives everyday. We learn from our mistakes or successes in order to define who we are. Everything we do, and all that happens to us, changes who we are. However, there are those experiences that stand out above all others, the ones that have a drastic impact on our life styles, the ones that change how we view the world, and how we view our own lives. Our day-to-day lifestyle changes and we are forced to find new ways to do things, forced to change our views on who we are. The one specific moment that I can pinpoint in my life that created a drastic change of who I am today occurred last year in late August. It was the first week of school and all I was really focused on was the football game coming up on Friday. I had spent most of my summer weight training and practicing for the upcoming season and I got drastically better than the year before, and was ready for anything. Little did I know what was waiting for me in the game to come. An experience that I never imagined would ever happen to me. An experience that never even crossed my mind†¦until Friday came. I managed to get through my first week of school without much trouble. I was ready for the game. I went through my normal pre-game after school. I decided to put on some new spikes on my cleats, since my other ones were pretty dull. This was an action that I will question for the rest of my life. The school we were playing was just down the canal bank that passed by our school, so we marched down in full force Now on the field we stretched out. Everything was the same as so many times before. We went into the locker room for the 15 minutes till the game started. I got into my crazy mindset, and started rocking back and forth, thinking of how much pain I would invoke on my opponents, and how I would go about doing that. I ran through all of the plays in my head at least once.

Transfer Pricing

Chapter 1 Introduction of the Topic TRANSFER PRICING TRANSFER PRICING is a term used to describe all aspects of inter Company pricing arrangements between related business entities, and commonly applies to inter Company transfers of tangible and intangible property. Inter Company transactions across borders are growing rapidly and are becoming much more complex. Transfer pricing refers to the internal pricing system that is used when divisions in the same firm deliver products or services to each other. The transfer price is a cost for the receiving division and revenue for the supplying division, so it affects the financial result of both divisions involved. Transfer prices can be based on market prices, but for various reasons a market-based transfer price might not be appropriate: transactions taking place between the divisions of the same firm are often unique and would not be offered stand-alone on the market. In practice, therefore, cost-based and negotiated transfer prices are used apart from market-based prices. Transfer pricing, for tax purposes, is the pricing of inter Company transactions that take place between affiliated businesses. The transfer pricing process determines the amount of income that each party earns from that transaction. Taxpayers and the taxing authorities focus exclusively on related-party transactions, which are termed controlled transactions, and have no direct impact on independent-party transactions, which are termed uncontrolled transactions. Transactions, in this context, are determined broadly, and include sales, licensing, leasing, services, and interest In India also, considering the importance of Transfer Pricing, Section 92 of the Income-tax Act, 1961 (‘the Act’) empowered tax authorities to make adjustments to income on arm’s length basis in case of transactions between residents and nonresidents having ‘close connection’. Also, section 40A (2) (a) was introduced in the Statute, giving powers to the assessing officer to disallow the expenditure incurred in respect of which payment is made to related parties, if assessing officer is of the opinion that such expenditure is excessive or unreasonable. However, these sections were limited in scope and had certain inadequacies viz. the term ‘close connection’ was not defined, there were no rules concerning documentation, the burden of proof was on the assessing officer, no rules were prescribed for determining arm’s length prices etc. On the Customs side, under the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, there were provisions for rejecting the transaction value when the buyer and seller were related persons or when they had interest in one another’s businesses. Corporate the world over are expanding their wings in an effort to gain a share of the global pie. There is talk of the world fast turning into a global village with economies increasingly becoming inter-connected. But with cross-border trade comes a whole new set of problems, Transfer pricing is one of them. When a company opens a branch in another country, gets its products manufactured there and then imports it, there is a question mark over what price should the parent pay for buying the product from the subsidiary. This price till now has been subject to the parent’s discretion and has been used by many corporate the world over to control the tax outgo to their Government. In effect, the price at which goods are transferred from one arm of the company to another is known as transfer pricing. The Finance Act 2001 introduced the detailed Transfer Pricing Regulations (T. P. R. ) in India from 1stApril 2001 APPROACHES TO TRANSFER PRICING Taxation that is based on transfer pricing is becoming an important issue for many companies, whether U. S. based or foreign based. The regulations have sought to impose extensive general principles and guidelines that apply when the taxpayer selects the transfer pricing method. These methods impose penalties on an inappropriate choice of a transfer pricing method. In addition, the administrative cost of complying with the regulations can be extensive. As a result, implementation of the transfer pricing regulations may impose significant costs on the taxpayer above and beyond the taxes themselves. Faced with this transfer pricing onslaught, businesses have chosen different approaches to the tax aspects of transfer pricing. At the outset, the selection of a transfer pricing strategy is determined by three factors: 1. Taxes imposed on the transfer pricing decision 2. Administrative time and expense incurred 3. Potential penalties (which are discussed next) Over the past decades, the topic of ‘transfer pricing’ has continuously attracted attention in the literature. The reasons for this intensive degree of attention are diverse. Lots of managers, in particular CFOs and controllers, can elaborate on the number of hours spent in order to reach a transfer pricing policy that is satisfactory and acceptable for all organizational members involved. Tax managers in multinational enterprises (MNEs), from their side, will explain the difficulties they encounter when fulfilling the transfer pricing tax rules in the different countries in which they operate. This article focuses on the dual role of transfer pricing – managerial versus tax compliance and sheds insights by approaching these issues from a corporate governance perspective. [pic] It is a well known fact that Multi-National Enterprises (MNEs) have found India conducive to set up their operations, largely because of the availability of a skilled work force at reasonable costs. Investments into India result in transactions between the Indian and the parent company as also between the Indian company and other foreign group companies. Such transactions could encompass sale of goods, provision of services, licensing of intangibles, to give a few examples. These transactions give rise to transfer pricing issues. Transfer prices are important for both tax payers and tax authorities because they determine, in large part, the income, expense and taxable profits of the associated (group) enterprises in different tax jurisdictions. Effective April1, 2001, India introduced a comprehensive TP legislation as an anti-avoidance measure. The Indian TP regulations are broadly based on the transfer pricing guidelines issued by the Organization for Economic Co-operation and Development (OECD), but are unique in some respects. The Indian TP regulations mandate that international transactions with related parties shall be determined having regard to the arm's length price, i. e. the price that would be charged by enterprises in an uncontrolled transaction. In India, not only are taxpayers selected for compulsory audits based on quantitative parameters i. . international transactions in excess of INR 50 million in a fiscal year (proposed to be increased to INR 150 million), but further, Indian tax authorities are seen as adopting an increasingly aggressive approach on TP related issues. In several cases, in the recent past, taxpayers faced significant challenges in defending their transfer prices. Taxpayers typically defen d their transfer prices as being at arm's length by conducting a transfer pricing study and comparing their net margins with those earned by comparable uncontrolled enterprises. Therefore, whether a particular transfer price is accepted as being at arm's length or not depends to a large extent on the process of selecting comparable data for the analysis. The lack of quality comparable data in public domain is a challenge faced by the taxpayers while preparing their documentation. This challenge is further compounded by the approach adopted the Transfer Pricing Officers (TPOs) during audits. In addition to using comparable data which was not available at the time of preparing the documentation, TPOs have also resorted to â€Å"cherry-picking† of comparables (especially y eliminating loss making/ low turnover comparables) rather than adopting an objective approach to identifying and screening the comparable companies. This approach creates a bias in favor of profitable companies in the comparable data, resulting in transfer pricing adjustments for the taxpayers. The worst affected were captive service providers, which bear little or no risks as they dea l with parent or group companies as compared to comparable uncontrolled transactions undertaken by other companies which cater to third parties and bear a range of risks including recovery of the price from the third party customers. or captive service providers. It is a fundamental economic principle that entities which However, in a number of instances, TPOs have largely ignored the importance of risk in a transfer pricing analysis and determined high mark ups on costs, to be the arm's length margin do not undertake risks can expect to earn a lower rate of return. Recently, The Delhi Income Tax Appellate Tribunal (ITAT) has revived the hopes of tax payers in India. This decision was given in the case of a captive service provider, Mentor Graphics (Noida) Private Limited, engaged in rendering software services to its US parent. The decision has laid down certain broad principles that could have a significant influence on transfer pricing in India. Steps of Transfer Pricing The scope for Transfer Pricing in such transactions also increases in cases with ‘tie-in’ clauses in licensing agreements or technical/financial collaborations which require the purchase of goods from the licensor or party designated by the licenser. There are three aspects of Transfer Pricing which are:- i) Motivational and Operational Aspect, ii) Regulation of Transfer Pricing, iii) Estimation and control. i) Motivational and Operational Aspect:- Operational and financial manipulations for transfer pricing take the form of false invoicing. This is defined by the OECD Committee on Fiscal Affairs (1976), as- â€Å"A transaction intended to evade tax by putting taxable objects outside the reach of national tax authorities by means of an invoice that does not accord with economic facts† This object is achieved through bo th under and over invoicing (of imports and exports), often by the same company. Policy induced motivation for transfer pricing manipulations may arise because of both tax and non-tax factors. Corporate tax rates and fiscal provisions, exchange rate fluctuations and import duties as also labor laws, policies restricting monopolies International tax avoidance to achieve these and other objectives may occur through general manipulations, as well as through specific items in the balance sheet and the profit and loss account. In BS loans to foreign affiliates may represent the repatriation of foreign profits in an attempt to avoid domestic payment of dividends, as also may excessive balances with affiliates. Write-off of inter company debt may be attempted to reduce balances that may have resulted from non arms length transaction. Omissions in the balance sheet of expected assets or liabilities may indicate transfer or sale of intangible assets like patents, know-how etc to tax affiliates. In P&L A/c, R and D expenditures may be hidden, pooled or distributed to avoid taxes; royalties may be excessive and may go to unlikely recipient affiliates; patents and trademarks may be charged for at monopolistic rates, or involve reciprocal benefits and may be prices even after their expiry. In case of payments, for both royalties and patents and trademarks, to affiliates the charges may not meet with the arm’s length criterion. Payments for home-office administrative support, R and D etc. , may be excessive and may contain hidden profits which are not assessed in the country of receipt. Sales of partly finished goods, third party commissions or discounts to foreign affiliates, unexpected purchases or sales, rentals, office and travel expenses, changes in the pattern of accounts, liquidation and sales of foreign affiliates etc. also provide ample opportunity for transfer pricing and consequently tax avoidance. (ii) Regulation of Transfer Pricing:- In a mixed economy like ours this could mean a misallocation of resources, accompanied by an adverse redistribution of incomes away from national entities and the related BOP effects. Before dealing with transfer pricing before it can occur and after it has occurred, policy regulation is therefore also required, to deal with its macro economic consequences. The adverse impact on host government foreign exchange; revenue losses and the consequent implications for internal resources mobilization; distortion in the functioning of specific policy instruments resulting in the non-achievement of plan targets; all call for an active role of the state. Similarly, at the micro level the proliferation of market concentration and oligopolistic practices require state intervention. (iii) Estimation and Control:- 1). Any proper appraisal of the scope of transfer pricing manipulations on the part of transnational corporations, and of their actual practice must be assessed within the framework of the specific set of government measures and structural factors endemic to TNCs which tend to be the motivational forces behind such practices. 2). Abandon the free market model and allow for a changed role of the state, from one of trying to restore some traditional version of market relations to that of an active intervener in the struggle over international distribution of surplus. Keeping in mind these approaches, we would like to focus on the problem of estimation the extent of pricing manipulations by TNCs, in various sectors and industries in developing countries, in the context of relevant government policies and regulations. Exemption for Bankers Bankers have sought an exemption from the provisions of transfer pricing regulations. When banks extend loans and guarantees by way of investment in equity, this may lead to the specified shareholding limits being exceeded. Though the banks may not have any control over the company, such transactions are subjected to transfer pricing rules of the Income Tax Act. In their meeting with the finance minister earlier this month, public sector banks had said banks should be excluded from the purview of the transfer pricing provisions under the income tax law. Current regulations also cover loans advanced for not less than 51% of the book value of the total assets of the borrower and guarantees granted for more than 10% of the total borrowings of the guarantor. But experts feel that banks do not usually have so much exposure to a single borrower. Banks provide financial assistance to various corporate and non-corporate clients by way of investment in equity or preference shares, subscription to debentures, loans and guarantees. Under section 40A(2) of the Income Tax Act, any expenditure incurred between related parties treated as unreasonable by the assessing officer is not allowed as a deduction. This section empowers an assessing officer to disallow deduction of any expenditure incurred between related parties and considered by the officer as excessive or unreasonable having regard to the fair market value of the goods, services or facilities. Similar restrictions are applicable to banks according to the transfer pricing provisions under sections 92 A to 92F. The scope of related person under section 40A(2) for a banking company includes a person in whom it has a substantial interest in the business, where ownership of shares is not less than 20% of the voting power. However, according to Reserve Bank of India regulations, voting powers are limited to 10%, irrespective of the ownership of shares. The transfer pricing provisions (sections 92 to 92F) only apply to transactions between two non-residents or between a resident and a non-resident and not to transactions between Indian banks and Indian counterparties. â€Å"While the transfer pricing provisions can be applied to transactions between the foreign subsidiaries of Indian banks and Indian counterparties, only under very rare exceptions do such foreign subsidiary banks have an exposure to unrelated borrowers to bring their transactions within the transfer pricing rules. â€Å"Also, it is unlikely that transactions between Indian branches of foreign banks and Indian counterparties would result in a loan greater than 51% of the book value of assets of the borrower for the transfer pricing rules being made applicable to genuine third party transactions. The objective of transfer pricing is that the correct amount of profits should be retained within the country and thus the transfer pricing provisions should be made inappl icable to transactions between Indian branches of foreign banks and the group’s related Indian companies,† Mr Wadhwani added. While lending, banks may grant loans at fluctuating rates compared with market rates after factoring in risk factors, creditability and type of industry. Given that the pricing adopted is within the framework of norms outlined by banks that are regulated by RBI, the Indian Banks Association is of the view that banks should be removed from the purview of such sections TYPICAL CASH FLOW The question arises that how the transfer price can be used as a mechanism to evade tax, especially between countries that have a treaty against double taxation. To explain this let’s take an example. Suppose there is an MNC shoe corporation with a subsidiary in India. The Indian subsidiary manufactures shoes at a cost price of Rs 50 per unit and supplies it to the MNC. The MNC sells the same shoes in its own country at Rs 200. To be fair, the transfer price, which the Indian subsidiary should get, is cost plus a reasonable rate of return (i. e. Rs 50 plus). This is where the MNC company calls the shots. In India, the corporate tax on profits is at 35%. Suppose for the MNC country the rate of tax is 45%. Case 1. The MNC decides that Rs 100 is the correct transfer price. Then the scenario looks like this: Transfer Price at Rs 100 |Indian subsidiary |MNC |Grand Total | |Cost price |50 |100 |   | |Selling price |100 |200 |   | |Profit |50 |100 |150 | |Tax |17. 5 |45 |62. 5 | |Net Profit |32. 5 |55 |87. 5 | The transfer price becomes the cost price for the MNC and thus it earns a profit of Rs 100 per unit. Post tax, its profit is whittled down to Rs 55. Overall, the total profit after tax earned by the MNC (including the subsidiary’s profit) is Rs 87. per unit. Case 2. The MNC decides that Rs 150 is the correct transfer price. Then the scenario looks like this: Transfer Price at Rs 150 |Indian subsidiary |MNC |Grand Total | |Cost price |50 |150 |   | |Selling price |150 |200 |   | |Profit |100 |50 |150 | |Tax |35 |22. 5 |57. 5 | |Net Profit |65 |27. 5 |92. 5 | The MNC’s profits post tax in its own country comes down to Rs 27. 5. But overall the profit surges to Rs 92. 5 per unit. Case 3. The MNC decides that Rs 200 is the correct transfer price. In such a case, the MNC earns zero profits in its own country, but its subsidiary pays a 35% tax on its profit of Rs 150 and thus overall net profit surges to Rs 97. 5. Transfer Price at Rs 200 |Indian subsidiary |MNC |Grand Total | |Cost price |50 |200 |   | |Selling price |200 |200 |   | |Profit |150 |0 |150 | |Tax |52. 5 |0 |52. 5 | |Net Profit |97. 5 |0 |97. 5 | Case 4. The MNC decides that Rs 300 is the correct transfer price. In this case, the MNC earns a loss of Rs 100 per unit of shoe sold in the home country. Meanwhile, its subsidiary earns Rs 162. 5 as profit, after paying Rs 87. 5 as tax. But the clever MNC gets a tax write off at home worth Rs 45 m. Transfer Price at Rs 300 |Indian subsidiary |MNC |Grand Total | |Cost price |50 |300 |   | |Selling price |300 |200 |   | |Profit |250 |-100 |150 | |Tax |87. 5 |-45 |42. | |Net Profit |162. 5 |0 |192. 5 | Please remember, these are just a few hypothetical simple situations. In reality, these dealings are much more complex with conglomerates having more than 50 subsidiaries in just as many countries. Transfer pricing became a subject of much debate in the western countries as government’s felt that corporates are down paying their fair share of tax. As a result, these countries spearheaded awareness regarding transfer pricing. Case Study High Court Rules Against Coca-Cola in Tra nsfer Pricing Case M Padmakshan Economic Times January 6, 2009 MUMBAI: The Punjab & Haryana High Court has ruled against Coca-Cola India's contention that the proof of profit transfer outside India is a precondition for applying transfer pricing rules. Coca-Cola had approached the high court after it was served a notice on transfer pricing. The soft drink company had an agreement to offer advisory services to Britco at the rate of cost plus 5%. Coca-Cola's main contention was that transfer pricing rules cannot be applied in the absence of prima facie evidence of profit transfer outside India. The high court said that India's transfer pricing rules can be applied to any cross-border transaction between associated enterprises, irrespective of profit transfer outside India. The court said the only requirement is income generation in a cross-border transaction and income has been computed at arms length. Coca-Cola told the court that transfer pricing rules were meant to check profit erosion outside India and therefore could not be applied in cases where there is no prima facie evidence of profit transfer outside the country. The high court did not accept this view. It held that existence of a cross-border transaction and computation of the resultant income at arm's length price are sufficient grounds for applying transfer pricing rules. According to Coca-Cola, the transfer pricing provisions have been incorporated in the Income-tax Act by the Finance Act 2001 and the applicability of these provisions has been limited to situations involving profit diversion outside India. There is no material evidence to show that profits have been diverted outside India, the company said. The court said that it is the prerogative of the income-tax department to issue such a notice and expressed its inability to intervene in the matter. Coca-Cola was assessed under I-T Act in 2004 for the year 1998-99. The dispute arose after the income-tax department concluded that the income had escaped assessment under the Income-Tax Act. FAIR USE NOTICE: – This document contains copyrighted material whose use has not been specifically authorized by the copyright owner. India Resource Center is making this article available in our efforts to advance the understanding of corporate accountability, human rights, labor rights, social and environmental justice issues. We believe that this constitutes a ‘fair use' of the copyrighted material as provided for in section 107 of the U. S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond ‘fair use,' you must obtain permission from the copyright owner. Arm’s Length Method Arm’s length, as the term indicates, means keeping a neutral balance between inter-corporate arms. The idea is that companies should treat each subsidiary as a separate entity and deal with them on purely commercial terms, as they would have if they transacted with any other market player. Arm’s length methodologies are of two types:- a) Transactional Methods b) Profit Methods Transactional Methods – Where focus is on the product or the technology to ascertain the correct transfer price. Transaction methods can be further divided into three broad sub-groups. ) Comparable Uncontrolled Price Method 2) Resale Price Method 3) Cost Plus Method (1) Comparable Uncontrolled Price (CUP) Method: The price charged or paid in a comparable uncontrolled transaction or a number of such transactions shall be identified. Such price shall be adjusted to account for differences, if any, between the related party transaction and the comparable uncontrolled transactions or between th e enterprises entering into such transactions, which could materially affect the price in the open market. The adjusted price shall be taken as arm’s length price. The uncontrolled transaction means a transaction between independent enterprises other than related parties and shall cover goods or services of a similar type, quality and quantity as those between the related parties and relate to transactions taking place at a similar time and stage in the production/distribution chain with similar terms and conditions applying. (2) Resale Price Method: The price at which the goods purchased or services obtained from a related party is resold or is provided to an unrelated entity shall be identified. Such resale price shall be reduced by the amount of a normal gross profit margin accruing to the enterprise or to an unrelated enterprise from the purchase and resale of the same or similar goods or services in a comparable uncontrolled transaction or a number of such transactions. The price so arrived at shall be further reduced by the expenses incurred by the enterprise in connection with the purchase of goods or services. Such price shall be further adjusted to take into account the functional and other differences including differences in accounting practices, if any, between the related party transaction and the comparable uncontrolled transactions or between the enterprises entering into such transactions, which could materially affect the amount of gross profit margin in the open market. The adjusted price shall be taken as arm’s length price in respect of goods purchased or services obtained from the related party. The resale price method would normally be adopted where the seller adds relatively little or no value to the product or where there is little or no value addition by the reseller prior to the resale of the finished products or other goods acquired from related parties. This method is often used when goods are transferred between related parties before sale to an independent party. (3) Cost Plus Method: The total cost of production incurred by the enterprise in respect of goods transferred or services provided to a related party shall be determined. The amount of a normal gross profit mark-up to such costs arising from the transfer of same or similar goods or services by the enterprise or by an unrelated enterprise in a comparable uncontrolled transaction or a number of such transactions shall be determined. The amount of a normal gross profit mark-up shall be adjusted to take into account the functional and other differences, if any, between the related party transaction and the comparable uncontrolled transactions or between the enterprises entering into such transactions, which could materially affect such profit mark-up in the open market. The total cost of production referred to above increase by the adjusted profit mark-up shall be taken as arm’s length price. It is also important here to ensure that the cost base to which mark-up is applied is comparable to the cost base of the third party transaction which serves as comparable. For example, it may be necessary to make an adjustment to cost where one person leases its business assets while other owns its business assets. The cost plus method would normally be adopted if CUP method or resale price method cannot be applied to a specific transaction or where goods are sold between associates at such stage where uncontrolled price is not available or where there are long term buy and supply arrangements or in the case of provision of services or contract manufacturing. Profit method- It has been further sub-divided into three sub-groups i) Profit Split Method ii) Transactional Net Margin Method iii) Authentication of Documents Provided by the Company (1) Profit Split Method: The combined net profit of the related parties arising from a transaction in which they are engaged shall be determined. This combined net profit shall be partially allocated to each enterprise so as to provide it with a basic return appropriate for the type of transaction in which it is engaged with reference to market returns achieved for similar type transactions by independent enterprises. The residual net profit, thereafter, shall be split amongst the related parties in proportion to their relative contribution to the combined net profit. This relative contribution of the related parties shall be evaluated on the basis of the function performed, assets employed or to be employed and risks assumed by each enterprise and on the basis of reliable market data which indicates how such contribution would be evaluated by unrelated enterprises performing comparable functions in similar circumstances. The combined net profit will then be split amongst the enterprises in proportion to their relative contributions. The profit so apportioned shall be taken into account to arrive at an arm’s length price This method would normally be adopted in those transactions where integrated services are provided by more than one enterprise or in the case multiple inter-related transactions which cannot be separately evaluated. 1) Transactional Net Margin Method : The net profit margin realized by the enterprise from a related party transaction shall be computed in relation to costs incurred or sales affected or assets employed or to be employed by the enterprise or having regard to any other relevant base. The net profit margin realized by the enterprise or by an unrelated enterprise from a comparable uncontrolled transaction or a number of such transactions, shall also be computed having regard to the same base. This net profit margin shall be adjusted to take into account the differences, if any, between the related party transaction and the comparable uncontrolled transactions or between the enterprises entering into such transactions, which could materially affect such net profit margin in the open market. The cost of production referred to above increase by the adjusted profit mark-up shall be taken as arm’s length price. The adjusted net profit margin shall be taken as arm’s length price. This method would normally be adopted in the case of transfer of semi finished goods; distribution of finished products where resale price method cannot be adequately applied; and transaction involving provision of services. (3) Authentication of the documents provided by the company The information/documents provided by the company to the auditor for certification as provided in clause 7 hereof shall be signed on behalf of the Board by the Company Secretary and at least one Director of the company. In the absence of Company Secretary in the company, the same shall be signed by at least two Directors of the company on behalf of the Board. [pic] The most appropriate method referred to in sub-section (1) shall be applied, for determination of arms length price, in the manner as may be prescribed: Provided that where more than one price is determined by the most appropriate method, the arms length price shall be taken to be the arithmetical mean of such prices, or, at the option of the assessee, a price which may vary from the arithmetical mean by an amount not exceeding five per cent of such arithmetical mean. ] Where during the course of any proceeding for the assessment of income, the Assessing Officer is, on the basis of material or information or document in hi s possession, of the opinion that:- (a)The price charged or paid in an international transaction has not been determined in accordance with sub-sections (1) and (2); or b)any information and document relating to an international transaction have not been kept and maintained by the assessee in accordance with the provisions contained in sub-section (1) of section 92D and the rules made in this behalf; or (c)The information or data used in computation of the arms length price is not reliable or correct; or (d)the assessee has failed to furnish, within the specified time, any information or document which he was required to furnish by a notice issued under sub-section (3) of section 92D, The Assessing Officer may proceed to determine the arms length price in relation to the said international transaction in accordance with sub-sections (1) and (2), on the basis of such material or information or document available with him: Provided that an opportunity shall be given by the Assessing Officer by serving a notice calling upon the assessee to show cause, on a date and time to be specified in the notice, why the arms length price should not be so determined on the basis of material or information or document in the possession of the Assessing Officer. Where an arms length price is determined by the Assessing Officer under sub-section (3), the Assessing Officer may compute the total income of the assessee having regard to the arms length price so determined: Provided that no deduction under section 10A 82[or section 10AA] or section 10B or under Chapter VI-A shall be allowed in respect of the amount of income by which the total income of the assessee is enhanced after computation of income under this sub-section : Provided further that where the total income of an associated enterprise is computed under this sub-section on determination of the arms length price paid to another associated enterprise from which tax has been deducted 83[or was deductible] under the provisions of Chapter XVIIB, the income of the other associated enterprise shall not be recomputed by reason of such determination of arms length price in the case of the first mentioned enterprise. While going through each of these methods, it becomes clear that all these methods are not definitive methods for ascertaining transfer prices. Being a complex subject, more fine-tuning is needed to finally get a definitive benchmark method for calculating the transfer price. As business between countries is likely to only increase in future, transfer-pricing issues would be subject of even more scrutiny not only by government and legal bodies, but also the companies’ respective shareholders. But there is a lot of ground still to be done in this area. Speaking on the sidelines of a budget analysis session organized by Confederation of Indian Industry, Rohan K Phatarphekar, executive director nd national head, global transfer pricing services KPMG India Private Limited said, â€Å"The Budget was not bad, there was too much of expectations from the market. What the Budget lacked was clarity, the government failed to lay down a concrete roadmap to bridge the fiscal deficit. † But significant changes were announced in the tax structure like removal of FBT, removal of 10 per cent surcharge on the higher bracket of i ncome tax, commitment to introducing GST. [pic] Difficulties in applying Arm’s Length Principle . Multinational Enterprises groups are dealing in the integrated production of highly specialized goods, in unique intangibles, and in the provision of specialized services. 2. Associated Enterprises may engage in transactions that independent would not undertake, example sale or license of intangibles. 3. Arm’s Length Price may result in an administrative burden for both the tax administrations of evaluating significant numbers and types of cross-border transactions. 4. Far placed geographical locations and confidentiality etc. may cause difficulty in obtaining comparable data. Transfer Pricing in IT Department Commercial transactions between the different parts of the multinational groups may not be subject to the same market forces shaping relations between the two independent firms. One party transfers to another goods or services, for a price. That price is known as transfer price. This may be arbitrary and dictated, with no relation to cost and added value, diverge from the market forces. Transfer price is, thus, a price which represents the value of good; or services between independently operating units of an organization. But, the expression transfer pricing generally refers to prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises. It refers to the value attached to transfers of goods, services and technology between related entities. It also refers to the value attached to transfers between unrelated parties which are controlled by a common entity. Example of using Transfer Pricing Suppose a company A purchases goods for 100 rupees and sells it to its associated company B in another country for 200 rupees, who in turn sells in the open market for 400 rupees. Had A sold it direct, it would have made a profit of 300 rupees. But by routing it through B, it restricted it to 100 rupees, permitting B to appropriate the balance. The transaction between A and B is arranged and not governed by market forces. The profit of 200 rupees is, thereby, shifted to the country of B. The goods is transferred on a price (transfer price) which is arbitrary or dictated (200 hundred rupees), but not on the market price (400 rupees). Thus, the effect of transfer pricing is that the parent company or a specific subsidiary tends to produce insufficient taxable income or excessive loss on a transaction. For instance, profits accruing to the parent can be increased by setting high transfer prices to siphon profits from subsidiaries domiciled in high tax countries, and low transfer prices to move profits to subsidiaries located in low tax jurisdiction. As an example of this a group which manufactures products in high tax countries may decide to sell them at a low profit to its affiliate sales company based in a tax haven country. That company would in turn sell the product at an arm's length price and the resulting (inflated) profit would be subject to little or no tax in that country. The result is revenue loss and also a drain on foreign exchange reserves Reference to Transfer Pricing Officer. 92CA. (1) Where any person, being the assessee, has entered into an international transaction in any previous year, and the Assessing Officer onsiders it necessary or expedient so to do, he may, with the previous approval of the Commissioner, refer the computation of the arm’s length price in relation to the said international transaction under section 92C to the Transfer Pricing Officer. (2) Where a reference is made under sub-section (1), the Transfer Pricing Officer shall serve a notice on the assessee requiring him to produce or cause to be produced on a date to be specified therein, any evidence on which the assessee may rely in support of the computation made by him of the arm’s length price in relation to the international transaction referred to in sub-section (1). 3) On the date specified in the notice under sub-section (2), or as soon thereafter as may be, after hearing such evidence as the assessee may produce, including any information or documents referred to in sub-section (3) of section 92D and after considering such evidence as the Transfer Pricing Officer may require on any specified points and after taking into account all relevant materials which he has gathered, the Transfer Pricing Officer shall, by order in writing, determine the arm’s length price in relation to the international transaction in accordance with sub-section (3) of section 92C and send a copy of his order to the Assessing Officer and to the assessee. 4a[(3A) Where a reference was made under sub-section (1) befo re the 1st day of June, 2007 but the order under sub-section (3) has not been made by the Transfer Pricing Officer before the said date, or a reference under sub-section (1) is made on or after the 1st day of June, 2007, an order under sub-section (3) may be made at any time before sixty days prior to the date on which the period of limitation referred to in section 153, or as the case may be, in section 153B for making the order of assessment or reassessment or re computation or fresh assessment, as the case may be, expires. ] 84b[(4) On receipt of the order under sub-section (3), the Assessing Officer hall proceed to compute the total income of the assessee under sub-section (4) of section 92C in conformity with the arm’s length price as so determined by the Transfer Pricing Officer. ] (5) With a view to rectifying any mistake apparent from the record, the Transfer Pricing Officer may amend any order passed by him under sub-section (3), and the provisions of section 154 sha ll, so far as may be, apply accordingly. (6) Where any amendment is made by the Transfer Pricing Officer under sub-section (5), he shall send a copy of his order to the Assessing Officer who shall thereafter proceed to amend the order of assessment in conformity with such order of the Transfer Pricing Officer. 7) The Transfer Pricing Officer may, for the purposes of determining the arm’s length price under this section, exercise all or any of the powers specified in clauses (a) to (d) of sub-section (1) of section 131 or sub-section (6) of section 133. Undesirable Corporate Practices Related to Transfer Pricing Some of the related party transactions, which are usually resorted to for diversion of funds are detailed below. (a)  Ã‚  Ã‚   Purchase of goods or services from a related party at little or no cost or at inflated prices to the entity. (b)  Ã‚   Payments for services never rendered or at inflated prices. (c)  Ã‚  Ã‚   Sales at below market rates to an unnecessary â€Å"middle man† related party, who in turn sells to the ultimate customer at a higher price with the related party (and ultimately its principals) retaining the difference. (d)  Ã‚   Purchases of assets at prices in excess of fair market value. e)  Ã‚  Ã‚   Use of trade names or patent rights at exorbitant rates even after their expiry or at a price much higher than the price, which can not be described as reasonable. (f)  Ã‚  Ã‚  Ã‚   Borrowing or lending on an interest-free basis or at a rate of interest significantly above or below market rates prevailing at the time of the transaction. (g)  Ã‚  Ã‚   Exchanging property for similar property in a non monetary transaction. (h)  Ã‚  Ã‚   Selling real estate at a price that differs significantly from its appraised value. (i)  Ã‚  Ã‚  Ã‚  Ã‚   Accruing interest at above market rates on loans. Associated Enterprise. 92A. (1) For the purposes of this section and sections 92, 92B, 92C, 92D, 92E and 92F, associated e nterprise, in relation to another enterprise, means an enterprise a)Which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or (b)In respect of which one or more persons who participate, directly or indirectly, or through one or more intermediaries, in its management or control or capital, are the same persons who participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise. (2) 77[For the purposes of sub-section (1), two enterprises shall be deemed to be associated enterprises if, at any time during the previous year,] (a)one enterprise holds, directly or indirectly, shares carrying not less than twenty-six per cent of the voting power in the other enterprise; or b)any person or enterprise holds, directly or indirectly, shares carrying not less than twenty-six per cent of the voting power in each of such enterpris es; or (c)a loan advanced by one enterprise to the other enterprise constitutes not less than fifty-one per cent of the book value of the total assets of the other enterprise; or (d)One enterprise guarantees not less than ten per cent of the total borrowings of the other enterprise; or (e)more than half of the board of directors or members of the governing board, or one or more executive directors or executive members of the governing board of one enterprise, are appointed by the other enterprise; or f)more than half of the directors or members of the governing board, or one or more of the executive directors or members of the governing board, of each of the two enterprises are appointed by the same person or persons; or (g)the manufacture or processing of goods or articles or business carried out by one enterprise is wholly dependent on the use of know-how, patents, copyrights, trade-marks, licenses, franchises or any other business or commercial rights of similar nature, or any da ta, documentation, drawing or specification relating to any patent, invention, model, design, secret formula or process, of which the other enterprise is the owner or in respect of which the other enterprise has exclusive rights; or h)ninety per cent or more of the raw materials and consumables  required for the manufacture or processing of goods or articles carried out by one enterprise, are supplied by the other enterprise, or by persons specified by the other enterprise, and the prices and other conditions relating to the supply are influenced by such other enterprise; or (i)the goods or articles manufactured or processed by one enterprise, are sold to the other enterprise or to persons specified by the other enterprise, and the prices and other conditions relating thereto are influenced by such other enterprise; or (j)Where one enterprise is controlled by an individual, the other enterprise is also controlled by such individual or his relative or jointly by such individual and relative of such individual; or k)Where one enterprise is controlled by a Hindu undivided family, the other enterprise is controlled by a member of such Hindu undivided family or by a relative of a member of such Hindu undivided family or jointly by such member and his relative; or Chapter 2 Objectives of the Study Objectives of the Study:- Primary Objectives: 1) To study the acceptability of different methods of Transfer Pricing in the companies. 2) To find out the ways of applying Arm’s Length Method and the results of it. 3) To study the different terms like Associated Enterprises, Transfer pricing officer, International Transaction & Subsidiary company etc. Secondary Objectives 1) To identify various other ways of managing the profit of the company. 2) To analyse different ways of applying extra cash flow. ) To find different ways of Transfer Pricing which are applicable under Income Tax Act 1961. Chapter 3 Company Profile COMPANY PROFILE PARAMOUNT Established in 1993, P aramount Surgimed Ltd. manufactures wide range of Surgical Blades, Scalpels which cover General Surgery and other Surgical Area viz: Gastroentrology, Urology, Orthopedic & General Surgery etc. Paramount Surgimed Ltd. is exporting their products in more than 50 countries. Paramount Surgimed Ltd. is first Company who has been approved by ISI, ISO 9001 & FDA registered company and their products are CE marked. A guiding sense of concern for mankind and a mission to realize richer human life led to the birth of PARAMOUNT SURGIMED LTD. Paramount has grown with a reputation of specializing in manufacturing of a wide range of single use medical and surgical devices such as Surgical Blades, Disposable Scalpels, Stitch Cutters and Skin Graft Blades. Paramount has its corporate head office in New Delhi, the capital of India & operates its major production activities from Bhiwadi in Rajasthan. This has a floor space of 30000 sq. ft. on 10000 sq. meter. plot and a mere 60 km from the Capital City. The facilities comprise of latest state – of – the – art – manufacturing unit comparable to international standards. Paramount is committed to exceed it’s customer's expectations. All aspects of manufacturing and packaging is done in a clean & controlled environment. We adhere to the policy of strict quality control without mercy by making use of in – house test laboratory, for competitive quality assurance at all times. Blades are sterilized through Gamma Radiation in New Delhi. We are an ISO 9000: 2000 company and the products are CE marked. Our products are also registered with various health ministries around the world. Vision Statement Today India is at the down of the millennium’s exciting future with the liberalization and the opening up of its economy. The world is taking a look at India, her products, and her enterprises. With a vision of being a global leader in Medical Disposables, Paramount Surgimed Ltd. dedicates itself to the crucial sector. Mission Statement We at  Paramount Surgicals, Inc are committed to  design, manufacture and distribute finest spinal implant and instruments. Since its beginning, Paramount Surgical, Inc has stood for one capability above all others – the ability to Innovate. Innovate  is a sense of possibility that allows for freedom beyond mere innovation. We strive without reserve for the greatest possible reliability and quality of our products and to be recognized in the market for our dedication, honesty and services. Paramount Surgimed Limited has created this privacy statement in order to demonstrate our firm commitment to privacy. The following discloses the information gathering and dissemination practices for our Corporate Web site: www. paramountblades. com. . R & D Technology Mission We fully understand the grave implications of technology and are constantly on the move to keeping abreast with rapid technological development towards the quest for excellence in the field of Medical & Surgical disposables. The R & D department not only helps in developing new products and their manufacturing technologies but also in improving existing ones. Quality Commitment Paramount has kept alive quality as a legacy in which quality is not an end but a vehicle for seeking excellence & perfection at all stages. We are committed to exceed our customer's expectations. All aspects of manufacturing and packaging is done in a clean & controlled environment. We adhere to the policy of strict quality control without mercy by making use of in – house test laboratory, for competitive quality assurance at all times. Blades are sterilized through Gamma Radiation in New Delhi. We are an ISO 9000 : 2000 company and the products are CE marked. Our products are also registered with various health ministries around the world Step in to the Future Encouraged with the continued impressive performance, Paramount has decided to expand & diversify in to the other related areas, targeting the year leading into 21st century. Paramount will build additional new manufacturing facilities equipped with latest technologies in the field of healthier business. The responsibility and obligation to the customer to supply the best products in every way is the power of its efforts. Like the tip of an iceberg, only a small part of its work is visible. The significant strength however is the use of most progressive and modern technologies, and the untiring efforts of its employees, who continue to strive for more efficient and better solutions. Response by placing repeat orders for years together, Paramount has a sustained and consistent growth. OSIM Delhi based Paramount Surgimed Ltd. has signed a Master Franchisee Agreement with OSIM International Ltd. , over $ 300 million company and Singapore's largest manufacturer of lifestyle products to import and trade OSIM products in India and Nepal through OSIM India, a division of Paramount Surgimed Ltd. Established in 1980, OSIM is the No. brand in lifestyle products in Singapore, Hong Kong, Taiwan, and Malaysia, UK & USA, Australia, Canada and over 22 franchisee all over the world. OSIM produces superior designs focusing and following ergonomic guidelines along with quality features. OSIM India has opened 23 outlets in the country in just one year. These include outlets in Delhi, Gurgaon, Ludhiana, Kolkata Bangalore, Chennai, Mumbai, Hyderabad, Pune and Indore. By the end of this year it plans to expand and set up a total of 25 more outlets. Quality As we offer lifestyle products related to health, quality is the most important factor that, we take special care of. Our products are completely flawless and stand at par even with the international standards. All our products are checked and tested under strict supervision of experts and doctors, so that they do not cause any adverse health effects. Specially equipped with quality experts who individually examine the products themselves so that our clients can use it in a comfortable way. Fully guaranteed our products have been manufactured with complete care, perfection and precision by world class procedures. Believing in the motto â€Å"quality begins with us†, we have earned enormous accolades. Operations 1. Human Resource:- The Company is having a manpower of around 530 employees all over India. To maintain the proper management on this vast manpower, the company uses the Master Software, â€Å"Portal Data Management†. The turnover ratio of manpower is around 110 employees in a year. Process of Recruitment- To do the recruitment firstly the Manpower assessment is done, then approval is taken from the Heads, HOD’s and then permission is taken from COO’s Basically the company tries to fill the gap internally, by posting the existing employee at the new post, personal sources of employees, their relatives and friends and then if necessary it uses the job portals available on-line and scrutinize the resumes available there. Then the company conduct interview (no G. D. is done), firstly with HR personals then with concern HODs. This process ends for the post of a Front line officer. If a higher person is to be recruited then the interview with COO is also conducted. Then the final result is taken regarding that candidate. Documents to be carried on the date of joining and everything else except the salary (salary is included because many person negotiate other companies on the basis of this LOC) Probationary Period for the new employee remains for 6 months and after that, if he/she (if found suitable), is given permanent employee certificate. Training and Development- Generally the training is provided in the concerning departments only by the employees already working over there. Basically two types of training is provided. i. Product/Technical Training- In this, the training is provided regarding the products of the company and also the work which the new employee is to be done. This includes the hard core training. ii. Soft skills/Non-technical Training- In this training, the soft skills are taught to the candidate, like the behavior of the employees, working conditions, organizational culture etc. Time to time the employees development programs are also conducted to motivate the employees i. e. to understand their personal problem, solving it out, developing their career path, etc 2. I. T. The company is having one single IT department to control all the data base management and all the networking facilities. This department is in head office. The company uses its own made OSIM Software to keep the data and all of its branches are using the same software, which is downloaded by the head office personals with the SQL information. The company is also engaged in on line merchandizing, it makes online sales also with the help of its website. It uses OSIM India as the selling website which is fully organized by the Head Office only. 3. Accounts The Company’s Accounts Department is near to Head Office. The Accounts Department is having a workflow of 25 members who are handling the accounts of the different branches of the Company. The Company is using Tally 9 Software along with MS Office to maintain the records of the customers 4. Marketing:- The Company is having a highly powerful Marketing activity which is the biggest strength of the company. The products of Paramount are traded in both domestic and international markets. Our medical products are being exported to more than 40 Countries across the world like USA, Asia, and South Africa etc. Moreover, OSIM is declared as Asia No. 1 healthy lifestyle brand in consumers’ minds It basically having two types of Sale i. e. a) Corporate- The Company is having almost 35% of its total sales in the Corporates. Its Corporate clients includes ONGC, Japee Hotels, Indian Oil, Hyath Group of Hotels, Apollo Tyres, Apollo Hospitals, Heritage Hospitals, Fortis Hotels etc. The Company is having a big ratio of its sales in Indian Army and other PSU’s b) Retails- The Company’s Retailing is very strong. Almost 65-70% of its sales is based on Retailing. Its Retailing is very wide, which is divided in three modes i. Showrooms- The Company has opened its own Showrooms in different parts of the country, including Chandigarh, Delhi, Ludhiana, Ahemdabad, Kerla, Hyderabad, and many other places. The Showrooms are exclusively defined, and highly modernized, with all the facilities for the visitors. ii Shop in Shops- At many places the Company is having its shops in different shops. This is a very new concept which provide the firm to save money and also having more attention form the visitors along with standing with other different renowned Brands. iii Road Shows- The company has a mode of selling through Road Shows. Road Shows are very popular in Metro Cities and a large amount of sales of the Company is dependent on that. The Company is having its all time Road Show in Delhi, Bangalore, Kolkata, Chennai etc. Products iMedic Chair Revolutionary chair designed for precise massage The new OSIM iMedic Chair is the first of its kind to cater to the specific needs of every individual by detecting the precise location of acupressure points along the back. With more than 300 acupressure points in the body, every person’s body shape is as different as the shape of our face. Determining the exact body shape of the use allows a more sensitive massage to be applied effectively to just the right spot, helping to relieve fatigue and neuralgia, promote blood circulation, ease muscle strain and stiffness, leaving you feeling relaxed all over. Sit back, close your eyes and sink into the luxuriousness of the OSIM iMedic Chair as you relinquish your body to the ultimate massage experience. Detecting Acupressure Points: While seated deeply into the OSIM iMedic Chair with your head resting comfortably on the headrest pad, select any of the 8 comprehensive massage programmes. Before commencement of any programme, the massage rollers automatically glide along the length of your back to detect the acupressure points via 2 infrared sensors. Once detected, you can look forward to a massage experience unlike any other. Shoulder Position Adjustment: You can further personalize the massage programmed by adjusting the position of the rollers at your shoulder area, so you can pinpoint the massage precisely where you want it. Well-being Programmes: These 3 relaxing programmed are designed to enhance your health by adapting massage treatment to your daily routine. Morning Programme: For those who feel an ongoing tiredness and a lack of energy during the day, giving you the extra perk you need Night-time Programme: Use at the end of the day to fully relax your body and prepare you for a good rest. Useful if you suffer from insomnia. Seat Programme: Massages the hip area using a combination of vibration action and seat message. Useful for relief of constipation discomfort. Luxurious Comfort Versatile Design The OSIM iMedic Chair has been designed with features to raise the level of comfort to unparalleled heights. Fully Automatic Reclining System: Recline the backrest and/or the footrest independently at the siple touch of the Remote Controller to find the position that suits you best. Adjustable Angle: The backrest can be reclined up to 170 degree for greater comfort. Extendable Footrest: The footrest can be easily extended to cater to the height of the user. Auto-Timer: Whichever programme you chose, it will automatically run for a maximum of 15 minutes, allowing you to relax your mind while the OSIM iMedic Chair relaxes your body. However, you can turn the programme off or switch to a different programme at any point and the timer will reset automatically. Total Remote Control: A comprehensive Remote Controller with two LCD display screens controls all programmes and functions for an uninterrupted massage session. Anti-bacterial Upholstery Covers: The upholstery covers are specially coated with an anti-bacterial treatment, keeping bacteria like Staphylococcus, Yellow Coliform Bacilli and MRSA at bay. They are completely removable for easy cleaning. Available in white, black, latte and olive. Foldable Backrest and Castors: For easy storage and transportation. Paramount Surgimed Ltd, New Delhi has been chosen as Master Franchise to represent OSIM in India. OSIM India A Division of Paramount Surgimed Ltd shall be promoting a wide range of OSIM products through our exclusive showroom to start with in New Delhi and followed by in other cities. OSIM International Ltd, Singapore came in to existence in the year 1980 with the aim to provide a healthy lifestyle to the mankind. From a humble start to $287. 4 million company, today OSIM is promoting its products through is Master Franchise in over 20 countries. OSIM INDIA is coming up with a top of the line massage chair in India Millennium Chair OS – 747iv: The Master Of Relaxation. Equipped with a specially designed roller system, which moves in a wavelike motion along your spine to effectively massage muscoes relieve aches and stiffness. Bliss Chair NR-90: Complete Relaxation from Top to toe. Full body massage with a unique reversible footrest, which gives you a choice of resting your legs, or treating your feet and calves to a stimulating massage. Apart from the above products we have a Reflexologist, i Twin, Foot Reivitalizer 2, Tappie (Handy Massager), Warm Air Turbo, eHuman-logic BPM, Pro Therapist, Massuer Chair, Hair Brush, Ear Scan, Health Sole, Eye Care Massager, Large Gel Pad, Samll Gel Pad, VF scan, e-Body fat Scale, Fever Band, Handy Neb, Ultrasonic Neb, Instant Heat Pad (small), Slim Belt (Aerobics), Slim Belt (Body Shaping), Slim Belt (back support), Slim Belt (Extra Support), Spare Wire, Upholstery for OS777, Music CD for OS777, I. Sense Upholstery for OS757 to add to the big range of products. Chapter 4 Research Methodology RESEARCH METHODOLOGY Methodology is the bone of a project. It has also an important place as regards to cash management system project. It helps us in Collection and analysis of data in preparing the project. My Research is purely a Descriptive Research, which includes understanding and analyzing Transfer Pricing and its different Method. My sources of collection of data must be very much reli able, so secondary data collection method is used for the purpose of the project for the Price Management System. I have gone very deeply in preparing the project & I devoted my full attention to get the accurate & real data collection. For this purpose I became in close contact with sources of data collection by personally & through Internet. The Methodology contains the following things:- †¢ Methods of Data Collection :- For the project report, methods of data collection has an important role in connection with accuracy & exact information. So, I adopted both the methods primary as well as secondary method of data collection. A) Primary Data : Throughout the preparation of the project report, I was in the contact of CFO & other staff of finance department of Paramount Surgimed Ltd. o get the information in connection with the practical working of transaction between the company & banks. B) Secondary Data: I have also collected the information, figures & data in connection with the preparation of project report from Balance-sheet & annual report of Paramount Surgimed Ltd. I have also colle cted the information about cash management, services & Latter of Credit provided by the bank to the company. Along with it I have collected information about the topic from the Internet and also form many of my friends and colleagues who have worked over on the similar kind of projects or who are having a good command over the subject. Sources of Data :- Sources of collection of data for a project report has a very

Analysis of “Music and Lyrics” Essay

â€Å"Music and Lyrics† revolved around the relationship that was formed between Alex Fletcher (Hugh Grant), former 80s pop star, and Sophia Fisher (Drew Barrymore), Alex’s plant keeper and a copywriter for her family’s weight loss center. More than anything else, Alex was portrayed as a washed-up 80s pop star who had nothing left in his career but a bunch of country fair and amusement park performances definitive of a â€Å"nostalgia circuit† as well as a few high school reunions here and there (Moviefone 2007). He had another chance to becoming somebody in the music industry as pop diva Cora Corman commissioned him to write and record a duet with her (Moviefone 2007). This was under the pretense that he was going to write and compose a hit song for her in just a few days. This posed a problem for him because he had not actually composed anything for years and he found it hard to work with anyone else except for Colin, his former band mate from their group â€Å"Pop. † Colin was the one who got famous out of all the members of â€Å"Pop. † Sophie Fisher enters the scene as Alex’s substitute plant-keeper whom he recognized to have a natural flair for writing witty lyrics. He discovered her fear of committing to write again after a traumatic relationship with former professor and famous novelist Sloan Cates (Moviefone 2007). However, discovering that they had real chemistry writing the songs and off the job, they finally gave themselves the chance at love and success they way they never thought they deserved (Moviefone 2007). Protagonist Conflict They say that a movie is only as good as its story’s problem, because the stronger the conflict, the more chance that would be generated into the energy of the movie’s screenplay (Whitcomb 2002). The moment the conflict appears that would be the time wherein the story has really begun until then that would be parts that are considered setup, background and exposition (Whitcomb 2002). Basically, the â€Å"Conflict is the heart of the story in a very real sense; it’s what keeps it pumping, makes the blood race through its veins, and brings it to life† (Whitcomb 2002, p. 56). External Conflict began upon Alex’s realization that he was really an established has-been, although his reaction to this may be more of an internal conflict, how the world saw him served as an external one. Following the premise above, the story of this movie actually started when he was presented to be part of the show called â€Å"Battle of the Has-Beens. † The format of this show actually presented him in a comical light wherein people get to see the people who were stars before and are not stars anymore, thus the term â€Å"has-been† because they had been stars. If this announcement to world was not embarrassing enough, stars of the past had to battle it out in the boxing ring for another chance to perform before the audience. The show was not only demeaning; it portrays them as pathetic stars that missed the limelight so badly that they had to go through some great lengths of boxing with each other. It symbolized Alex’s stature in the industry, as a washed up pop singer. After such interview with the producers, Alex was faced with other realities such as show cancellation. He was given another realization how society found him replaceable and disposable. He show at Knots berry was cancelled, even as he considered it one of the biggest gigs he had since the fall of his stardom. It was this realization of public’s perception that made Cora Corman, famous but eccentric pop star during that time, and her offer to Alex to compose a song for her an appealing deal. However, with this offer came high stakes because Cora had given Alex merely enough time to compose and to write the lyrics of a song for her in just a couple of days. When the dilemma of writing a song was addressed because of the presence of Sophie, another external conflict broke out as they found out how Cora wanted to do the song. Her treatment of the song was different from the sweet and witty love song Sophie and Alex initially had in mind. It was turned into something erotic and sexual more than being romantic. Sophie was appalled by it because she felt it was a destruction of the creative integrity of their work. During that time, she tried her hardest to fight against succumbing to what Cora wanted to do with the song. Being a first-time lyricist to work in the music industry, she appeared naive enough to put more pressure of Alex about changing the song back to how it was supposed to be. The final external conflict was the pressure for Alex to give in to the new treatment of the song, no matter how, farfetched it was from his original composition, only to have another chance to redeem him in the pop industry. On the other hand, the external conflict for Sophie was with this professor, Sloan Cates. He has been the one who had written about her in his novel and poked fun of everything she felt insecure about. The presence of the novel Sally Michaels has also brought Sophie shame, the same way Alex felt shame as his career also went down the drain. The mere arrogance of Sloan after Sophie and Alex confronted him, caused also much pain and shame for Sophie realizing that she still could not talk up to him after all those time. Internal The news that he was being considered in the â€Å"Battle of Has-beens† was acceptable to Alex in the surface. But upon knowing that instead of performing, he was, asked to go there to box it out for a final song, and then it dawned on him just how low his career has gotten. Although, he would be the first one to admit he was a â€Å"has-been† there were certain areas in the film wherein he would feel the shame of it, like the high school reunion he performed at when he pulled a hip muscle and the time at the carnival wherein he did not want to do his last song anymore before Sophie encouraged him to do so. His battle with accepting his fate as a â€Å"has-been† was one thing, but there was also his fear of composing again and writing lyrics. The breakup of the band â€Å"Pop† for him was more devastating for him than he would than he would let people see. He tried to come up with his own solo album after the band broke up but he struggled to keep his pride after that was a flop. He also struggled internally with what he was going to do about the changes in the song. He wondered if he was going to walk away from the project like Sophie did or was he about to give up Sophie, a woman who had brought inspiration back to his life. Sophie had a lot of internal conflicts as well. She had to be forced to write the lyrics for Alex’s project because of how she struggled with Sloan’s fictional novel that was based on her life. She refused to write for him knowing she was not good enough. She did not acknowledge how she did not feel that way before the incident with Sloan’s novel that actually destroyed a part of who she was. She felt she was not good enough because of how her former professor had treated her, calling her a mimic and someone who without following the styles of her contemporary writers would have no creative genius of her own. She struggled to find her own creative self-worth after that. She also struggled when Cora had a different idea she had in mind about the treatment of â€Å"A Way Back into Love,† the song she and Alex created. She refused to get on with the project if it was like that. However, she felt Alex’s despair of seeing this as his last chance in the industry. She was torn between that and how she was furious about Alex’s inability to stand up for the integrity of their work. She was torn because she had feelings for Alex as well. Moral Component Much of the moral component found in the film laid in the fact that Alex and Sophie struggled to maintain the creative integrity of their work. It showed a â€Å"behind-the-scenes† peak into the pressures of the business. It showcased how a work that is entirely different would make into something erotic and sensual in order to appeal to the public. Sophie was so appalled by this change in the song because the erotic version took away what the song actually stood for. She did not want Alex to make a comeback that did not reflect who he was. She wanted him to make one that actually displayed his sensitive and honest side. Both of them knew that the revised version of the song did nothing of that sort; nevertheless, Alex went ahead with it. Although, there was a falling away that took place between them, in the end, Alex did the right thing of maintaining the song’s original composition. He even got the chance to write a song of his own for Sophie as well. Another component laid in the fact that Alex stood up for Sophie when she could not do so for herself against Sloan. Their experience together had taught them much more than writing a new song but being able to see themselves for the worth that they had as people and as artists. It showed how even if in the past, they had been turned down and their talents did not seem good enough, it should not have defined them as people the way they allowed it to happen. It showed how other people, like music critics or famous novelists, cannot have that much power on them that they are constricted artistically. It is only when they had let go of baggage from the past and used all their pain to fuel their creativity that they were able to complete the song. Mise en Scene Mise-en-scene literally means â€Å"put the scene† in French and was a term used in theater (Kolker 2005). When used in film, it points towards the totality of the composition of the shot (Kolker 2005). It refers to the â€Å"framing, movement of the camera and characters, lighting, set design and general visual environment, even sound as it helps elaborate the composition† (Kolker 2005). It is also the â€Å"articulation of cinematic space† wherein space was used to help tell the story (Kolker 2005). The principle of cutting also falls under mise-en-scene as it determines what goes on in that particular space (Kolker 2005). In the movie â€Å"Music and Lyrics,† the shots followed a basic flow. It flowed from one scene to another. It did not have anything fancy or dramatic. It served as a basic canvas that reserved much of its charms to the actors and own presence on the screen. However, a lot of the shots were similar to music videos as the movie revolved around the music industry of the 80s and the present. The movie opened with a â€Å"Pop† music video that represented the 80s and soon showed a music video Cora Corman was shooting that represented popular music in the 21st century. When it came to framing, there were a few instances wherein they would be held at quite close or tighter shots to focus on the actors. The framing was basic shots to let the actor’s witty banter to shine more than anything else. Everything was kept to a minimal so as not to serve as a distraction as this film was mostly about the comedic script and the charm of the actors. There were also instances wherein the shot began from the television screen that overcomes the whole shot and there was a similar one that had an entire magazine cover of Cora taking up the whole shot. Such were done to establish how the movie had a pop theme and that such symbolisms represented the music industry, through MTV shows and teen magazines. There were also instances wherein they used old techniques like the shot panning from the wall to the actors or the frame actually panned through the fixtures of the apartment like the column inside the apartment. It was reminiscent of the old shots they use for movies that give it the old feel to it. The camera, the lenses, the lighting instruments and other tools are used photographically to create the feel, and to fulfill the vision of how the film should look like (LoBrutto 2002). In this case, the lighting of the film reflected the mood of the characters. There had been instances wherein Alex was not feeling very confident about himself wherein there was less light available on the screen. This can also be attributed to the street scene wherein it was dark outside. However, it was noticed again when he and Sophie were stuck on the lyrics of the song wherein it was also dark. There was also noticeable parts wherein the nice moments Alex had with Sophie were represented by soft bright lights that was reflected the warmth of Sophie’s persona. She always seemed like there was some glow to her every time she was in the scene. The light also played an important factor in terms of marking time. Since they only had a few days to finish the song, it showed how when it was dark again or morning again another day has passed by and they were closer to the deadline. It showed how they stayed up, pulling an all-nighter to finish the song. There were exaggerated lights used in the â€Å"Pop† music video as they way they did it in the 80s. It was in comparison with the more modern lights Cora had in the shooting of her music video. They were also red lights in Cora’s dressing room area that established her eastern inclinations. Cinematic tools do not only include skills in cinematography, sound and production design, it also includes editing (LoBrutto 2002). The editing for this movie was simple using cut-to-cut transitions that are widely used for television and movies to avoid distraction from other kinds of transitions. The production design includes the physical environment of the movie that would be constituted by the sets, the location (LoBrutto 2002). It also includes the costume designs as well as the hair and makeup required for the shot. This film called for a particular set design because of its reference to the music of the 80s. Since Alex was a member of the 80s pop band, â€Å"Pop,† there was a necessity to create the set of a 80s music video. The look was cheesy and over-the-top; they way they used to do it with red backgrounds and checkered black and white ones. Their costumes were also of the way they used to dress that was more on femininity of tuxedos they were wearing. Such outrageous costumes went together with the eye shadow and eyeliners that were descriptive of the style in that music generation. It was held in comparison to the modern style of music videos with Cora’s video. It showed more skin and the sex appeal was different as it was more erotic than the bubblegum love songs the â€Å"Pop† band had. Not that the context of Cora’s songs were deeper, they just presented pop in a more sexual manner. There were already dancers that backed her up and much use of the smoke machine. The other sets included Alex’s apartment that played a part in the story as Sophie wanted to move around the furniture in her hopes to get lyrics out of it. The major pieces of furniture that was important in telling the stories were the grand piano, the large couch chair and the plants that Sophie was drowning. A notable set that was created for this movie was the enormous Buddha on the stage designed for Cora’s concert. It was such an incredulous set that intentionally desperately tried to incorporate Cora’s Buddhist influence with her music even if it was not so relevant. Sound was a very important factor to this film because a large percentage of it was about musical performances. Most of the sound design for this film relied on staying true to the 80s theme with the songs that were used for this film like Pop Goes my Heart and the songs that it was contrasted to with Cora’s sensual songs like Welcome to Booty town. Another area of sound was the piano Alex played as he tried to compose the song. It also included his jiving â€Å"jeopardy† tune that he used to pressure Sophie finish the songs. Part of the greatest charms of the movie, was the part wherein Alex and Sophie recorded the demo for Cora in Alex’s own mini-studio in his apartment. Narrative The personalities of the characters were essential in the narrative of the movie. Alex was dryly straightforward yet witty. Sophie talked too much and was paranoid yet naive at the same time. The other characters like Rhonda, Sophie’s sister was the strong one in her household but she was also an Alex-fanatic. Ray, Alex’s manager, was ever supportive of him. Cora was an epitome of a pop icon of today’s time; beautiful, eccentric and sensual. Each of the characters represented something the moviegoers could relate and empathize with (Tan 1996). Their little flaws and quirks were what made them charming because the viewers can see a part of themselves or somebody else in them. It makes them relatable to the audience (Tan 1996). The viewers were drawn because of Sophie and Alex exchanged their witty banters and has come to the point of liking each other despite their own oddities. Audience could find the narrative relatable because it spoke of a generation that most of them have undergone or are in. Most of it involved, a generated of music videos. Even if, most were not former pop stars, interests were still aroused because of their interest in the music industry and social cognition of what was going on with the movie with what they know happen in reality (Tan 1996). Most of all, the narrative worked because of the presence of music. Something most people can relate to and most people are interested in. There was an excellent metaphor that the actors have used in terms of using music and lyrics in reference to relationships. It also serves as a theme for the movie itself. When Alex referred said it was just lyrics. Sophie argued that lyrics were important as well. She referred to melody as meeting someone for the first time and the physical attraction that came with it; it was related to sex in a relationship. On the other hand, once the couples get to know each other that turn into the lyrics wherein their story actually unfolds and reveals who they were. The combination of sex and the knowledge of each other was what make the relationship magical. Lyrics A Way Back into Love was the song Cora wanted Alex to compose. Listening to the lyrics actually summarizes much of the emotions and the thoughts that went on between Alex and Sophie, as well as the things each of them had been through in the past. The â€Å"cloud above my bed† symbolized how long they prevented themselves from moving on because of the fear they had due to past rejections. The following verses reflected exactly that saying â€Å"I’ve been lonely for so long, trapped in the past, I just can’t seem to move on! † It can be just a love song about past heartbreaks but it reflected the struggles Alex and Sophie had in the past about their careers. It also showed that the â€Å"someone to shed some light† was the person they found in each other. The chorus and other verses about dreams being kept in a box reflected their hope to find the joy that they had lost in the past. The song Alex composed by himself had similar charms to A Way Back into Love, he sang Don’t Write Me Off at Cora’s concert. It basically spilled everything he felt about his life saying â€Å"I’m happy to live my so-called fallen glories† and how he felt about Sophie with charismatic antics like â€Å"it’s not just my furniture you’ve rearranged† and â€Å"now I need you despite the fact that you’ve killed all my plants. † References Kolker, R. (2005). Film, form and culture. United States: McGraw-Hill. Also retrieved on November 29, 2007, from http://userpages. umbc. edu/~landon/Local_Information_Files/Mise-en-Scene. htm. LoBrutto, V. (2002). The filmmaker’s guide to production design. New York: Allworth Press. â€Å"Music and lyrics. † (2007) Moviefone. Retrieved on November 29, 2007 from http://movies. aol. com/movie/music-and-lyrics/25137/synopsis. Tan, E. (1996). Emotion and the structure of narrative film: Film as an emotion machine. Mahwah, NJ: Lawrence Erlbaum Associates. Whitcomb, C. (2002). The writer’s guide to writing your screenplay: How to write great screenplays for movies and television. Canada: Kalmbach Publishing Co.