MODE OF ENTRY

Murata Manufacturing Co. Ltd. will establish a branch office in India (a wholly owned
subsidiary). The branch office of the company will be established in a SEZ in India.

All items/activities for FDI/NRI/OCB investment up to 100% fall under the Automatic Route
except those covered under (i) to (iv) of Para 2.9.

The activities are as follows:-

a. arms and ammunition, explosives and allied items of defence equipments defence
aircraft and warships;
b. atomic substances;
c. narcotics and psychotropic substances and hazardous chemicals;
d. distillation and brewing of alcoholic drinks; and
e. Cigarettes/cigars and manufactured tobacco substitutes.

Therefore, Murata Manufacturing Co. Ltd. will enter India through the automatic procedure.

The proposals for approval under the automatic route are to be made to the Reserve Bank of
India in the FC(RBI) form. In a major drive to simplify procedures for foreign direct
investment under the "automatic route", investors will have to file the required documents
with the concerned Regional Office of the RBI within 30 days after issue of shares to foreign
investors. This facility is available to NRI/OCB investment also.

The steps to be taken for the automatic procedure have been mentioned in the next page.
 Submission of
The Annual Activity Certificate as at the end of March 31 shall be
Annual Activity
submitted, on or before April 30, to the designated AD Category – I bank Certificate
and a copy to the Directorate General of Income Tax (International
Taxation)
Permanent
Account Number
The Branch Office shall obtain Permanent Account Number (PAN) from (PAN)
the Income Tax Authorities on setting up of their office in India and report
the same in the Annual Activity Certificate.
Unique
Unique Identification Number (UIN) will be allotted to the brach office.
Identification
Consequent upon delegation of powers existing Branch Office will also Number (UIN)
have to necessarily approach the Reserve Bank through their designated
AD Category -I bank for their requests/references.
Copy of the Certificate of Incorporation / Registration attested by the
Notary Public in Japan. Form FNC
Latest Audited Balance sheet of Murata Manufacturing Co. Ltd.
Bankers’ Report from the banker in Japan.
The designated AD Category – I bank is required to forward the
application/s, along with the relevant documents and their comments /
recommendations to Reserve Bank of India.
PROCEDURE FOR AUTOMATIC PROCEDURE