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- From: krishnan@ra.csc.ti.com (Srinivasan Krishnan)
- Subject: How is profit calculated for a subsidiary?
- Message-ID: <1992Nov23.165209.18139@csc.ti.com>
- Sender: usenet@csc.ti.com
- Nntp-Posting-Host: ra
- Organization: Texas Instruments
- Date: Mon, 23 Nov 1992 16:52:09 GMT
- Lines: 18
-
-
- How is profit calculated for a subsidiary of a foreign company located in
- India? For example, many foreign software companies have their subsidiaries
- (assume a 100 percent export oriented unit owned by a foreign firm)
- in India that develop software for their parent companies. The parent
- companies pay a sum to their subsidiaries (I assume this one) to execute
- the project. What is the profit made by the subsidiary in this case?
- Is it the amount saved by the sudsidiary out of the amount paid by the
- parent company or is it the amount saved by the parent company if the
- same project were executed at the location of the parent company or is it
- something else?
-
- If you know the answer, please e-mail it to krishnan@ddd.itg.ti.com
-
- Regards,
-
- Krishnan
-
-