-SUBSIDIES- CASH RANSFER OF SUBSIDY ISSUE

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Subsidies- Cash Transfer of Subsidy Issue.

A subsidy is a benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.

Direct Cash Transfer Scheme is a poverty reduction measure in which government subsidies and other benefits are given directly to the poor in cash rather than in the form of subsidies.

It can help the government reach out to identified beneficiaries and can plug leakages. Currently, ration shop owners divert subsidised PDS grains or kerosene to open market and make fast buck. Such Leakages could stop. The scheme will also enhance efficiency of welfare schemes.

The money is directly transferred into bank accounts of beneficiaries. LPG and kerosene subsidies, pension payments, scholarships and employment guarantee scheme payments as well as benefits under other government welfare programmes will be made directly to beneficiaries. The money can then be used to buy services from the market. For eg. if subsidy on LPG or kerosene is abolished and the government still wants to give the subsidy to the poor, the subsidy portion will be transferred as cash into the banks of the intended beneficiaries.

It is feared that the money may not be used for the intended purpose and men may squander it.

Electronic Benefit Transfer (EBT) has already begun on a pilot basis in Andhra Pradesh, Chhattisgarh, Punjab, Rajasthan, Tamil Nadu, West Bengal, Karnataka, Pondicherry and Sikkim. The government claims the results are encouraging.

Only Aadhar card holders will get cash transfer. As of today, only 21 crore of the 120 crore people have Aadhar cards. Two other drawbacks are that most BPL families don’t have bank accounts and several villages don’t have any bank branches. These factors can limit the reach of cash transfer.

WEALTH MAXIMIZATION

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Concept:

 

 

Wealth maximization is the concept of increasing the value of a business in order to increase the value of the shares held by stockholders. The concept requires a company’s management team to continually search for the highest possible returns on funds invested in the business, while mitigating any associated risk of loss.

 

Wealth maximization simply means maximization of shareholder’s wealth. It is a combination of two words viz. wealth and maximization. A wealth of a shareholder maximizes when the net worth of a company maximizes.

 

Objectives:

 

 

  1. Measurement of Wealth
  2. Market Value of Shares
  3. Common Goal
  4.  D’s Of Financial Decisions
  5. Shareholder’s Expectations

 

 

  1. Measurement of Wealth

 

The main Principle of financial management is the Maximization of Shareholders Wealth. Shareholder’s Wealth is measured on the basis of economic value. Economic value is based on cash flows and not profit. Economic Value is defined as: “The present value of future cash flows generated by a decision, discounted at appropriate rate of discount which reflects the degree of associated risk“.

 

  1. Market Value of Shares

 

The future cash flow is estimated for the present value. The present value is the Market price of share. As Shareholder’s wealth is equal to the market price of shares held by him, any increase in Market price of shares would result in an increase in Shareholder’s Wealth.

 

  1. Common Goal

The Maximization of Shareholder’s Wealth is the common goal between the Shareholders and the Management. The recognition of this goal motivates the Management to allocate the available resources in an optimum way.

 

 

 

 

 

  1. 3 D’s Of Financial Decisions

The Maximization of Shareholder’s wealth indicates that the Market price of share is related to three basic financial decisions:

The investment decisions,

The financing decision,

The dividend decision.

 

  1. Shareholder’s Expectations

 

Shareholder’s expectations are about future cash flows based on current cash flows and projected future growth. The market price of share shows these expectations.

Geographical condition and distribution of major crops, like,Rice, Wheat,Cotton, Jute, Sugarcane, Rubber, Tea and Coffee

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Rice

The rice is cultivated on the largest areas in India. Historians believe that while the indica variety of rice was first domesticated in the area covering the foothills of the Eastern Himalayas (i.e. north-eastern India).Rice is a nutritional staple food which provides instant energy as its most important component is carbohydrate (starch). Rice is grown in almost all the states of India. The main rice producing states are Tamilnadu, West Bengal, Andhra Pradesh, Bihar, Jharkhand, Uttarakhand, Chhatisgarh, Punjab, Odisha, Uttar Pradesh, Karnataka, Assam and Maharashtra. It is also grown in Haryana, Madhya Pradesh, Kerala, Gujrat and Kashmir Valley. The rice growing areas in the country can be broadly grouped into five regions as discussed below :

  1. North-Eastern Region:This region comprises of Assam and North eastern states. In Assam rice is grown in the basin of Brahmnaputra river. This region receives very heavy rainfall and rice is grown under rain fed condition.
  2. Eastern Region This region comprises of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Eastern Uttar Pradesh and West Bengal. In this region rice is grown in the basins of Ganga and Mahanadi rivers and has the highest intensity of rice cultivation in the country. This region receives heavy rainfall and rice is grown mainly under rain fed conditions.

iii. Northern Region: This region comprises of Haryana, Punjab, Western Uttar Pradesh, Uttrakhand, Himachal Pradesh and Jammu & Kashmir. The region experiences low winter temperature and single crop of rice from May-July to September-December is grown.

  1. Western Region: This region comprises of Gujarat, Maharashtra and Rajasthan. Rice is largely grown under rain fed condition during June-August to October – December.
  2. Southern Region: This region comprises of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. Rice is mainly grown in deltaic tracts of Godavari, Krishna and Cauvery rivers and the non-deltaic rain fed area of Tamil Nadu and Andhra Pradesh. Rice is grown under irrigated condition in deltaic tracts.

Wheat

Wheat is the second most important food crop of India next to rice. It is a Rabi or winter crop. It is sown in the beginning of winter and harvested in the beginning of summer. Normally (in north India) the sowing of wheat begins in the month of October-November and harvesting is done in the month of March-April. This is the staple food of millions of people particularly in the northern and north-western regions of India. Unlike rice, wheat is grown mostly as a rabi or winter crop.

The main regions of wheat production in India are U.P., Punjab, Haryana, Rajasthan, Madhya Pradesh, Gujrat,Maharashtra. U.P., Punjab and Haryana together produce more than 66% of the total wheat of the country.

Cotton

 

Cotton requires a daily minimum temperature of 16ºC for germination and 21ºC to 27ºC for proper crop growth. During the fruiting phase, the day temperature ranging from 27ºC to 32ºC and cool nights are needed. The sowing season of cotton varies considerably from tract to tract and is generally early (April-May) in northern India where it is mostly irrigated. It is delayed on proceeding to down south. It is cultivated largely under rainfed or dryland conditions. An annual rainfall of atleast 50 centimetre distributed through-out the growing season is required for good yield. It is mainly raised during tropical monsoon season, although in southern India it is cultivated during late-monsoon season in winter. The cotton-picking period from mid September to November must have bright sunny days to ensure a good quality.

India has the largest area under cultivation and third largest producer of cotton next only to China and the USA. Within the country two third of total area and production is shared by four states. The main states for cotton production are Panjab, Maharashtra, Gujarat and Haryana.

Jute

Jute is a crop of humid tropical climates. It thrives well in areas with well distributed rainfall of 2,500 mm spread over vegetative growth period of the crop with no cloudiness. Locations with a mean rainfall of <1,000 mm, incessant rainfall and waterlogging are not suitable for its cultivation.

West Bengal, Bihar and Assam grow jute extensively.

Sugercane

Sugarcane belongs to the grass family. It has a thick jointed stem, Which contains the cane sugar, The juice can be taken as a drink or made into sugar, jaggery or khandsari. . The by-products of sugar are very useful. Bagasse is used to make paper, cattle feed, fuel for mills-and cardboard; molasses for power alcohol. Fertilizers, yeast and rum; and press mud of wax. and shoe polish. It supports the pesticide and fertilizer industries. Sugar factories provide employment to over a million ‘workers. India is the second largest sugarcane producer in the world.

Climatic and soil conditions which favour the cultivation of sugarcane are:-

  • Temperature: 20°C-30°C. Temperature above 50°C arrests its growth and temperature below 20°C slows down its growth.
  • Rain: 75-120cms. It cannot withstand frost. For ripening it needs a cool dry season.
  • Soil: A medium heavy loam is ideal-In northern India it is cultivated on clay loams and alluvial soil while in south India it is cultivated on brown or reddish loams, black cotton soil and laterites.

Leading sugarcane producing states are Uttar Pradesh, Bihar, Punjab.Haryana, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh.

Rubber

Rubber tree is sturdy, quick growing and tall. It grows on many types of soil provided the soil is deep and well drained. A warm humid equitable climate (2 1′ to 35′) and a fairly distributed rainfall of not less than 200 c m are necessary for the cultivation of rubber crop.

Kerala (accounts for 90% of the total area under rubber), Tamil Nadu, Karnataka, Andamanand Nicobar Islands. Parts of West Bengal. Orrisa., Maharashtra, Karnataka and’N.E parts of India are potential regions for rubber-cultivation.

Tea

Commercial Tea plantation in India was started by the Britishers in 1923 when wild tea plants were discovered by them in the hilly and forest areas of Assam.

Climatic conditions required for the growing of tea are

  • Temp: 13-35°C. Average of 25°C is suitable.
  • Humidity: – High humidity, heavy dew and morning fog promote growth if healthy leaves.
  • Rainfall: Annual rainfalI (range) 150-350cm (well distributed)
  • Soil- Well drained mountain soil, light, loamy, porous rich in nitrogen and iron/ laterite like the soil found in Assam

Assam is the leading producer that accounts for more than 50% of tea production of India. Tea producing areas of Assam are the hill slopes bordering the Brahmaputra and Surma valleys. West Bengal is the second largest producer of tea where tea is mostly grown in the districts of Darjeeling, Siliguri, Jalpaiguri and Cooch Bihar districts. Tamil Nadu is the third largest producer where tea growing areas are mostly restricted to Nilgiri hills.

Coffee

Commercial cultivation of coffee was started by British entrepreneurs in South India during 1820’s.

Most of India’s coffee is grown in three Southern states: Kerala, Karnataka, and Tamil Nadu, the first two account for nearly 90 percent of total production. Much of the coffee in Kerala and Karnataka is grown in the Western Ghats, a mountain chain that runs parallel to the coast line and about 100 miles inland from the Arabian Sea. India exports nearly 70 percent of the coffee it produces. These exports consist mainly of high grade beans from both the Arabica and the Robusta growing regions.

Geographical Requirement for Coffee cultivation are as follows:-

  • Temperatute:- should be ranging between 15 to 28°C throughout the year. Frost free environment. Direct raysof the sun are harmfui as it.is grown in the shade of trees. In its early stages of growth it needs to be protected from hot.dry winds.
  • Rainfall:- 125cm- 250 cms throughout the year.
  • Soil:-. Well drained, weathered volcanic soil, red and laterite soil. The presence of humus is essential. .
  • Topography:- grows on hill slopes at elevation ranging from 500mts to 1800mts.

 Air masses and fronts

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Airmasses

 

An airmass is a large body of air with relatively uniform thermal and moisture characteristics. Airmasses cover large regions of the earth, typically several hundred thousand square kilometers. Airmasses can be as deep as the depth of the troposphere or as shallow as 1 to 2 km.
Airmasses form when air remains over a relatively flat region of the earth* with homogeneous surface characteristics for an extended period of time. ( Canadian and Siberian plains, cool oceanic regions such as the North Atlantic and Pacific, deserts, such as the Sahara and the American southwest, and tropical oceanic regions including the equatorial Atlantic and Pacific, and smaller water bodies such as the Caribbean Sea and the Gulf of Mexico).

Polar air masses, containing little moisture and low temperatures move downward from the poles.  Air masses that form over water are generally moist, and those that form over the tropical oceans are both moist and warm. Because of the Coriolis effect due to the Earth’s rotation, air masses generally move across North America from west to east.  But, because of the differences in moisture and heat, the collision of these air masses can cause instability in the atmosphere.

Polar air mass is cold and tropical air mass is warm. When cold air mass and warm air mass blow against each other, the boundary line of convergence separating the two air masses is termed as front. When the warm air mass, moves upward over the cold air mass the front formed in such a situation is called warm front. On the contrary, when the cold air mass advances faster and undercuts the warm air mass and forces the warm air upwards, the front so formed is called cold front. The frontal surface of cold front is steeper than that of a warm front . A prevailing air mass in any region – polar, tropical, maritime or continental largely controls the regions general weather.

Different air masses are:-

  1. Maritime tropical (mT)
    ii. Continental tropical (cT)
    iii. Maritime polar (mP)
    iv. Continental polar (cP)
    v. Continental arctic (cA).

Where ‘m’ stands for Maritime; ‘c’ stands for continental; ‘T’ stands for tropical; ‘P’ stands for polar and ‘A’ stands for arctic region.

Fronts

An important properties of air is that it is a poor conductor of energy. This means that when two different bodies of air come together, they do not readily mix. Rather, each body of air will retain its individual properties, and a boundary forms between them. When two large air masses meet, the boundary that separates them is called a front. Fronts represent fairly abrupt transitions between two large air masses. The warm, moist air might dominate an area hundreds of miles across, while in another part of the continent a cold, dry air mass holds sway over an equally large region. However, where the two air masses meet, the transition layer between them may be only a few tens of miles across, clearly a sharp transition between two massive bodies of air.

Fronts are recognized by the following properties:-

  • Sharp temperature changes over a relatively short distance. Sometimes change of 10 to 20 C may be observed.
  • Change in moisture content
  • Rapid shifts in wind direction
  • Pressure changes
  • Clouds and precipitation patterns

Types of Fronts:-

Warm Fronts: A warm front occurs when a warm air mass advances and replaces a cold air mass. On a weather map, a warm front is depicted as a red arc, with red semicircles pointing in the direction of the advancing warm air.

Cold Fronts :-A cold front occurs when a mass of cold air advances into a region of warmer air.

Stationary Fronts:- A stationary front forms when a cold front or warm front stops moving. This happens when two masses of air are pushing against each other but neither is powerful enough to move the other. Winds blowing parallel to the front instead of perpendicular can help it stay in place.

Occluded Fronts:- Sometimes a cold front follows right behind a warm front. A warm air mass pushes into a colder air mass (the warm front) and then another cold air mass pushes into the warm air mass (the cold front). Because cold fronts move faster, the cold front is likely to overtake the warm front. This is known as an occluded front

 

 

23.01.18 Nagaland(NPSC) Current Affairs

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NORTH-EASTERN STATES

 

  • Centre to focus on silk sector in NE

 

  • Union minister of state for textiles Ajay Tamta on Monday said the ministry has accorded high priority to develop the silk sector as a viable option for livelihood in the northeast. The region makes up about 21% of the country’s total silk production.

 

  • Muga, known for its golden colour, is found only in the northeast and Assam owns the geographical indication (GI) tag for muga.

 

  • Nearly 3.1 lakh families in Assam are associated with the silk sector. A 60,000-acre area is involved in silk production and plantations for plants for silkworms.

 

  • In the past few years, the Centre has sanctioned about 24 projects in silk sector worth Rs 809 crore for the northeast. Silk production sector can be one of the most effective poverty alleviation tools. 

     

    INTERNATIONAL

     

    • Malta’s Valletta becomes Europe’s Capital of Culture

     

    • Valletta has been officially inaugurated as the European Capital of Culture.

     

    • Over 140 projects and 400 events have been planned in 2018 around three main themes: Island Stories, Future Baroque and Voyages.

     

    • With about 6,000 inhabitants, Valletta is the smallest capital in the European Union.

     

    • It is located in a fortress and is a UNESCO World Heritage Site.

     

     

    ·        China adds 24 GW in just two months making it biggest producer of solar energy

     

    • Renewable energyuse is increasing day by day almost everywhere.
    • Prime Minister Narendra Modi also weighed on the increase in the use of solar power and also brought ‘Suryaputra’ nations together for better and cleaner future.
    • Solar energy use was noted by China when the country managed to add 10.52 gigawatts (GW) of solar capacity to its national total over the course of July 2017, in addition to the 24.4 GW of capacity that was installed over the first six months of the year.
    • The country is already the biggest producer of solar energy in the world, and that doesn’t seem likely to change anytime soon.
    • In the last two months alone, China has added 24.02 GW of solar capacity.
    • To put that into context, figures from earlier this year put Australia’s total capacity at around 6GW, a figure that’s projected to double by 2020. The US currently has a total capacity of 44.7 GW.
    • Meanwhile, China already cleared its goal of reaching a capacity of 105 GW by the end of 2020.

    ·        Sri Lanka bans import of non-airbag equipped vehicles from July 1

    ð  Sri Lanka restricted the import of the vehicles which do not carry airbags for driver and front seat passenger, Anti-Locking Breaking System standards (ABS) and three-point seat belts for driver and passengers traveling front and rear seats.

    ð  This decision after considering the representations made by motor vehicle importers and manufacturers for a lead time to make required adjustments to comply with the proposed emission standards and safety measures.

    ð  Accordingly, the importation of motor vehicles, which are below emission standards of the Euro IV or its equivalent and not complied with the following safety standards, will totally be prohibited effective from 1st July 2018.

    ·        West Indies to Host 2018 Womens World T20

     

    • The International Cricket Council (ICC)announced the 2018 edition of the Women’s World T20 will be hosted by West Indies in November 2018.
    • Hosts Windies will defend the title they won over Australia in Kolkata in 2016.
    • The three venues were selected by Cricket West Indies through a bidding process and have been ratified by the ICC.
    • The November event in the Caribbean will be the first stand-alone ICC Women’s World Twenty20 after the past five events were played alongside the men’s event.

     

    NATIONAL

     

    ·        India is the 5th Most Attractive Market for Investments: PwC Survey

     

    • India emerged as the fifth most attractive market for investments and the optimism over global economic growth is at a record level, as per the survey of CEOs by global consultancy PwC.
    • The US remains the top spot for global investment. Around 46% of global CEOs consider the US as one of the three most important countries for growth, followed by China (33%) and Germany (20%) at second and third places, respectively. India (9%) bumps Japan (8%) as the fifth most attractive market in 2018.

     

    • Centre bans import of pet coke for trading purpose in Delhi and NCR

     

    • As part of measures to control air pollution, the Union environment ministry has banned import of pet coke for purpose of trading in Delhi and its neighbouring states.
    • It has notified do’s and don’ts for its sale and use in cement plants and other end user industrial units, including refineries.

     

    • The ministry listed 13 points to regulate use of pet coke which is one of the key sources of air pollution in the region.

     

    • The notification was issued in compliance with the 2017 Supreme Court order

     

    Gk bit- Pet coke

     

    • Petroleum coke, or petcoke, is a byproduct from the refining of crude oil. It consists mostly of carbon, with variable amounts of sulfurs and heavy metals. It has many industrial uses, including the production of batteries, steel, and aluminum. Lower grade petcoke, which contains higher concentrations of sulfur, is used as fuel in coal-fired power plants and cement kilns. Lower grade coal is estimated to represent 75% to 80% of all petcoke produced.

     

    • The increased demand for coal to replace petcoke, which will largely have to be met by imports, coincides with increasing coal consumption in India for power generation.

     

    • India is the world’s second-biggest buyer of foreign coal even though imports have held steady in the last two years because of rising local output.

     

    • RIL becomes India’s first firm to cross Rs 6-lakh crore market cap

     

    • Reliance Industries (RIL) become the first Indian company to cross the Rs 6-lakh crore mark in market capitalisation as its shares touched a 52-week high of Rs 974.5.

     

    • RIL is owned 40% by its chairman Mukesh Ambani, making him the richest Indian with personal wealth of $40.7 billion and the 20th richest globally.

     

    • India’s largest software exporter, Tata Consultancy Services follows RIL with market capitalisation of Rs 5,95,946 crore.

     

    • HDFC Bank become the first bank to cross market capitalisation of Rs 5 lakh crore recently.

     

    ·        Union Government Announces List of 9 New Smart Cities

     

    • Union Housing and Urban Affairs Minister Hardeep Singh Puri announced the list of nine new Smart Cities, which have emerged winners in Round 4.
    • These nine cities are, Silvassa in Dadra and Nagar Haveli, Erode in Tamil Nadu, Diu in Daman and Diu, Bihar Sharif in Bihar, Bareilly in Uttar Pradesh, Itanagar in Arunachal Pradesh, Moradabad in Uttar Pradesh, Saharanpur in Uttar Pradesh and Kavaratti in Lakshadweep. 

       

      INTERNATIONAL

       

      • Malta’s Valletta becomes Europe’s Capital of Culture

       

      • Valletta has been officially inaugurated as the European Capital of Culture.

      • Over 140 projects and 400 events have been planned in 2018 around three main themes: Island Stories, Future Baroque and Voyages.

       

      • With about 6,000 inhabitants, Valletta is the smallest capital in the European Union.

       

      • It is located in a fortress and is a UNESCO World Heritage Site.

       

       

      ·        China adds 24 GW in just two months making it biggest producer of solar energy

       

      • Renewable energyuse is increasing day by day almost everywhere.
      • Prime Minister Narendra Modi also weighed on the increase in the use of solar power and also brought ‘Suryaputra’ nations together for better and cleaner future.
      • Solar energy use was noted by China when the country managed to add 10.52 gigawatts (GW) of solar capacity to its national total over the course of July 2017, in addition to the 24.4 GW of capacity that was installed over the first six months of the year.
      • The country is already the biggest producer of solar energy in the world, and that doesn’t seem likely to change anytime soon.
      • In the last two months alone, China has added 24.02 GW of solar capacity.
      • To put that into context, figures from earlier this year put Australia’s total capacity at around 6GW, a figure that’s projected to double by 2020. The US currently has a total capacity of 44.7 GW.
      • Meanwhile, China already cleared its goal of reaching a capacity of 105 GW by the end of 2020.

      ·        Sri Lanka bans import of non-airbag equipped vehicles from July 1

      ð  Sri Lanka restricted the import of the vehicles which do not carry airbags for driver and front seat passenger, Anti-Locking Breaking System standards (ABS) and three-point seat belts for driver and passengers traveling front and rear seats.

      ð  This decision after considering the representations made by motor vehicle importers and manufacturers for a lead time to make required adjustments to comply with the proposed emission standards and safety measures.

      ð  Accordingly, the importation of motor vehicles, which are below emission standards of the Euro IV or its equivalent and not complied with the following safety standards, will totally be prohibited effective from 1st July 2018.

      ·        West Indies to Host 2018 Womens World T20

       

      • The International Cricket Council (ICC)announced the 2018 edition of the Women’s World T20 will be hosted by West Indies in November 2018.
      • Hosts Windies will defend the title they won over Australia in Kolkata in 2016.
      • The three venues were selected by Cricket West Indies through a bidding process and have been ratified by the ICC.
      • The November event in the Caribbean will be the first stand-alone ICC Women’s World Twenty20 after the past five events were played alongside the men’s event.

       

      NATIONAL

       

      ·        India is the 5th Most Attractive Market for Investments: PwC Survey

       

      • India emerged as the fifth most attractive market for investments and the optimism over global economic growth is at a record level, as per the survey of CEOs by global consultancy PwC.
      • The US remains the top spot for global investment. Around 46% of global CEOs consider the US as one of the three most important countries for growth, followed by China (33%) and Germany (20%) at second and third places, respectively. India (9%) bumps Japan (8%) as the fifth most attractive market in 2018.

       

      • Centre bans import of pet coke for trading purpose in Delhi and NCR

       

      • As part of measures to control air pollution, the Union environment ministry has banned import of pet coke for purpose of trading in Delhi and its neighbouring states.
      • It has notified do’s and don’ts for its sale and use in cement plants and other end user industrial units, including refineries.

       

      • The ministry listed 13 points to regulate use of pet coke which is one of the key sources of air pollution in the region.

       

      • The notification was issued in compliance with the 2017 Supreme Court order

       

      Gk bit- Pet coke

       

      • Petroleum coke, or petcoke, is a byproduct from the refining of crude oil. It consists mostly of carbon, with variable amounts of sulfurs and heavy metals. It has many industrial uses, including the production of batteries, steel, and aluminum. Lower grade petcoke, which contains higher concentrations of sulfur, is used as fuel in coal-fired power plants and cement kilns. Lower grade coal is estimated to represent 75% to 80% of all petcoke produced.

       

      • The increased demand for coal to replace petcoke, which will largely have to be met by imports, coincides with increasing coal consumption in India for power generation.

       

      • India is the world’s second-biggest buyer of foreign coal even though imports have held steady in the last two years because of rising local output.

       

      • RIL becomes India’s first firm to cross Rs 6-lakh crore market cap

       

      • Reliance Industries (RIL) become the first Indian company to cross the Rs 6-lakh crore mark in market capitalisation as its shares touched a 52-week high of Rs 974.5.

       

      • RIL is owned 40% by its chairman Mukesh Ambani, making him the richest Indian with personal wealth of $40.7 billion and the 20th richest globally.

       

      • India’s largest software exporter, Tata Consultancy Services follows RIL with market capitalisation of Rs 5,95,946 crore.

       

      • HDFC Bank become the first bank to cross market capitalisation of Rs 5 lakh crore recently.

       

      ·        Union Government Announces List of 9 New Smart Cities

       

      • Union Housing and Urban Affairs Minister Hardeep Singh Puri announced the list of nine new Smart Cities, which have emerged winners in Round 4.
      • These nine cities are, Silvassa in Dadra and Nagar Haveli, Erode in Tamil Nadu, Diu in Daman and Diu, Bihar Sharif in Bihar, Bareilly in Uttar Pradesh, Itanagar in Arunachal Pradesh, Moradabad in Uttar Pradesh, Saharanpur in Uttar Pradesh and Kavaratti in Lakshadweep.

Appraisal System

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Performance appraisal is a vital tool to measure the frameworks set by any organization to its employees. It is utilized to track individual contribution and performance against organizational goals and to identify individual strengths and opportunities for future improvements and assessed whether organizational goals are achievedor serves as basis for the company’s future planning and development .

Performance appraisal is a formal system that evaluates the quality of an employee’s performance. An appraisal should not be viewed as an end in itself, but rather as and important process within a broader performance management system that links:

  • Organizational objectives
  • Day to day performance
  • Professional development
  • Rewards and incentives

In simple terms, appraisal may be understood as the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output,initiative, leadership abilities, supervision, dependability, cooperation, judgment, versatility, health and the like.Assessment should not be confirmed to past performance alone. Potentials of the employee for future performance must also be assessed.

Methord for performance and appraisals involves:

  •  Integrating performance appraisal into a formal goal setting system
  • Basting appraisals on accurate and current job descriptions
  • Offering adequate support and assistance to employees to improve their performance (e.g., professional development opportunities)
  • Ensuring that appraisers have adequate knowledge and direct experience of the employee’s performance
    Conducting appraisals on a regular basis.

 

Commissions/Committees & Their Purpose

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  Commissions/Committees & Their Purpose
Arjun Sen Gupta   Public Sector Enterprise Autonomy
Committee        
Rangarajan Committee   Disinvestment of PSUs & Balance of Payments.
Malhotra Committee   Insurance Sector & its regulation. Follow up led to setting up of IRDA.
Madhukar Committee   Gold exchange traded fund implementation.
L.C. Gupta Committee   Derivatives in India Model
Naresh Chandra Committee   Corporate Audit & Governance
JJ Irani Committee   Company Law
B. Bhattacharya Committee   Committee on pension reforms
Rakesh Mohan Committee   Small saving & Administered interest rates
Vijay Kelkar Committee   FRBM  (fiscal responsibility & budget management) Act implementation
S.P. Gupta Committee   Generation of Employment opportunities in the 10th plan.
Raghvan Committee   Replacement of MRTP act by competition act.
Eradi Panel   Industrial Insolvency.
M.S. Verma   Restructuring weak banks
Lakdawala Committee   Estimating Poverty line in India
Montek Singh Ahuluwalia   Power Sector reforms
Rakesh Mohan Committee   Development of Infrastructure in India
Abid Hussain Committee   Small Scale Sector
Jha Committee   MODVAT
Vasudev Committee   NBFC
Omkar Goswami Committe   Industrial Sickness
G.V. Ramakrishna   Disinvestment Commission
Arvind Virmani   Import Tariff Reform
Vaghul Committee   Money Markets India reforms

 

FERA   FEMA
Violation of FERA was a criminal offence. Violation of FEMA is a civil wrong.
Offences under FERA were not compoundable. Offences under FEMA are compoundable.
Penalty was 5 times the amount involved. Penalty is 3 times the sum involved.
Citizenship was a criteria to determine residential Stay in India for more than 182 days is the
status of a person under FERA. criteria to decide residential status.
There was only one Appellate Authority namely There are two appellate authorities namely
Foreign Exchange Regulation Appellate Board. 1. Special Director (Appeals) and
  2. Appellate Tribunal for Foreign Exchange.

 

 

 

 

 

Fiscal Responsibility & Budget Management (FRBM) Act 2003

 

  • The revenue deficit as a ratio of GDP should be brought down by 0.5 per cent every year and eliminated by 2007-08;

 

  • The fiscal deficit as a ratio of GDP should be reduced by 0.3 per cent every year and brought down to 3 per cent by 2007-08;

 

  • The total liabilities of the Union Government should not rise by more than 9 per cent a year;

 

  • The Union Government shall not give guarantee to loans raised by PSUs and State governments for more than 0.5 per cent of GDP in the aggregate;

 

Population Policy 2000

 

The immediate objective of the NPP 2000 is to address the unmet needs for contraception, health care infrastructure, and health personnel, and to provide integrated service delivery forbasic reproductive and child health care. To bring the TFR to replacement levels by 2010. Stable population by 2045 at a level consistent with sustainable economic growth.

National Socio-Demographic Goals for 2010

 

  1. Address the unmet needs for basic reproductive and child health services, supplies and infrastructure.

 

  1. Make school education up to age 14 free and compulsory, and reduce drop outs at primary and secondary school levels to below 20 percent for both boys and girls.

 

  1. Reduce infant mortality rate to below 30 per 1000 live births.
  2. Reduce maternal mortality ratio to below 100 per 100,000 live births.

 

  1. Achieve universal immunization of children against all vaccine preventable diseases.

 

  1. Promote delayed marriage for girls, not earlier than age 18 and preferably after 20 years of age.
  2. Achieve 80 percent institutional deliveries and 100 percent deliveries by trained persons.

 

  1. Achieve universal access to information/counseling, and services for fertility regulation and contraception with a wide basket of choices.

 

  1. Achieve 100 per cent registration of births, deaths, marriage and pregnancy.

 

  1. Contain the spread of Acquired Immunodeficiency Syndrome (AIDS), and promote greater integration between the management of reproductive tract infections (RTI) and sexually transmitted infections (STI) and the National AIDS Control Organisation.

 

  1. Prevent and control communicable diseases.

 

  1. Integrate Indian Systems of Medicine (ISM) in the provision of reproductive and child health services, and in reaching out to households.

 

  1. Promote vigorously the small family norm to achieve replacement levels of TFR.

 

  1. Bring about convergence in implementation of related social sector programs so that family welfare becomes a people centred programme.
  Selected Terms
Revenue Deficit Difference between revenue expenditure & revenue receipts
Budget Deficit Difference between total expenditure & revenue receipts
Fiscal Deficit Budget deficit plus non debt creating capital receipts
Primary Deficit Fiscal deficit – Interest Payments.
FIPB Foreign Investment Promotion Council
MIGA Multilateral Investment Guarantee Agency

 

 

Millenium Development Goals

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Millenium Development Goals
1. Eradicate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development

Miscellaneous Facts:

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Miscellaneous Facts:

 

  1. India’s GDP per Capita 622 (US $ PPP). It is 684 US $ for Pakistan.

 

  1. The top 3 countries with external debt are Brazil (235 billion $), China (193 billion $) & Russia (175 billion $). India is 9th with 112 billion $.

 

  1. Functional employment occurs when people change from one job to another & there is an interval. This can happen even in a situation of full employment. Structural employment happens when jobs exist for qualified persons but the unemployed do not have the matching qualifications. It also occurs when labour is available, but factors of production are missing. Cyclical unemployment arises out of cycles of recession. Disguised unemployment is when people are employed but their marginal productivity is zero.

 

  1. The CSO is responsible for estimating the national income. It is assisted by the National Sample Survey Organization (NSSO) which conducts large scale surveys.

 

  1. The tenth plan has taken the figure of 26% population below poverty line for planning purposes. Out of the total 75% are in rural areas & 25% in urban areas. Orissa (47.5%) has the highest proportion followed by Bihar (42.6%), M.P & Assam.

 

  1. WPI is a weighted average of indices covering 477 commodities & is a measure of inflation on an economy wide scale. Services do not figure in this. Base year is 1993-94. CPI is computed separately for three groups viz industrial workers (260 commodities), Urban non-manual employees (180 commodities) & agricultural labourers (60 commodities).

 

  1. The GDP deflator is arrived at by dividing the GDP at current prices by GDP at constant prices in terms of base year prices (1993-94). This indicates how much growth in GDP is due to price rise & how much due to increase in output.

 

  1. In WTO terminology, subsidies in general are identified by “boxes” which are given the colours of traffic lights: green (permitted), amber (slow down — i.e. be reduced), red (forbidden). For agriculture, all domestic support measures considered to distort production and trade (with some exceptions) fall into the amber box. In order to qualify for the “green box”, a subsidy must not distort trade, or at most cause minimal distortion. It includes amount spent on research, disease control, infrastructure & food security. Blue box subsidies are held to be trade distorting & include direct payment to farmers to limit production & certain government assistance to encourage agriculture & rural development in developing countries.

 

  1. Tobin tax is the suggested tax (within 0.1% to 0.25%) on all trade of currency across borders intended to put a penalty on short-term speculation in currencies leading to crisis (Eg. Asian Crisis).

 

 

 

 

 

 

 

  1. In 1972, 107 companies operating in the general insurance business were nationalized into four groups – NIC, United India Insurance Company, Oriental Insurance Company & New India Insurance Company with GIC as the holding company. These companies can compete against each other in all areas except aviation & crop insurance which are the monopoly of GIC.

 

  1. IRDA act 1999 has ended the monopoly of LIC/GIC in the insurance sector.

 

  1. The only two national stock exchanges of India are NSE & OTECI (Over the counter exchange of India). BSE is a regional stock exchange.

 

  1. At present the value of SDR is fixed in relation to a basket of five currencies – US dollar, German mark, British pound, French frank & Japanese yen.

 

  1. Current Account Convertability – the holders of domestic currency have the right to convert the currency into foreign exchange for any current account purpose such as travel, tourism, trade. Transactions like those in assets are not permissible unless there capital account convertability.

 

  1. Ceteris Paribus – ‘Other things remaining equal’. ‘Ad Valorem’ means as per value. Laffer Curve – hypothesis that when the tax rate is raised the revenue realized tends to fall. Monopsony – single buyer as opposite of monopoly where there is a single seller. Lorenz curve shows graphical representation of income distribution. The Phillips curve illustrates the relationship between inflation and unemployment.

 

  1. Bretton Woods Agreement led to the establishment of World Bank & IMF. More developed a country greater would be its dependence on direct tax.

 

  1. MODVAT (modified value added tax) was introduced in India in 1986 (MODVAT was re-named as CENVAT w.e.f. 1-4-2000). Increase in RBI credit to the government during a year represents Monetised deficit.

 

  1. A high fiscal deficit leads to adverse effects on BoP, rise in interest rates & a high cost economy.

 

  1. The reverse repo rate is the rate at which banks park their short-term excess liquidity with the RBI, while the repo rate is the rate at which the RBI pumps in short-term liquidity into the system

 

  1. PNB is the oldest existing commercial bank in India. India’s short term debt is less than 10 % of India’s total debt.

 

  1. The title of World Development Report 2005 is “A Better Investment Climate For Everyone”.

 

  1. The 12th financial commission recommendation would be applicable for the period 2005-2010. Minimum Alternate Tax is a tax on zero tax companies.

 

  1. Press Note 18 requires that a foreign company in a joint venture with an Indian company cannot get into other wholly owned ventures without the domestic partner’s permission.

 

 

 

 

 

 

 

  1. Domestic Commercial Banks contribute to the Rural Infrastructure Development fund to the extent of their shortfall in their lending to the priority sector lendings.

 

  1. Capital adequacy ratio affects assets of banks, its share capital & its investment. International Finance Corporation essentially provides loans to boost private sector investment of member countries.

 

  1. Zero-based Budgeting requires that a program be justified from the ground up each fiscal year. ZBB is especially encouraged for Government budgets because expenditures can easily run out of control if it is automatically assumed what was spent last year must be spent this year

 

  1. The main source of revenue for the Union government in ascending order of importance are income tax, custom duties, corporate tax & excise duties.

 

  1. Prevention of Money Laundering act is applicable to drug trafficking, mafia, gun running etc. Maintaining its increasing trend since 1990-91, except in 1998-99, the share of direct taxes in central tax revenues increased from 19.1 per cent in 1990-91 to 43.3 per cent in 2004-05 (RE) and further to 47.9 per cent 2005-06 (BE).

 

  1. Trade Related Investment measures (TRIMS) under WTO apply that no restrictions will be imposed on foreign investment in any sector; all restrictions on foreign companies will be scrapped; Imports of raw materials by foreign companies are to be allowed freely.

 

  1. Participatory Notes (P-Notes) refers to investment in Indian securities by unregulated FIIs & Hedge funds. NCLT will replace the role of Company law board, BIFR & High courts. Fiduciary issue is the paper currency not backed by gold or silver.

 

 

Essential Extra Reference:

 

  • Various Schemes launched by the government

 

  • Capex in various sectors- telecom etc.

 

  • Export Import Value with trade in Merchandise

Structure, relief and physiographic divisions

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Three Geological divisions:

  1. The peninsular block
  2. The Himalayas and other Peninsular Mountains
  3. Indo-Ganga-Brahmaputra Plain

 

  • Peninsualar block is made of gneisses (metamorphic) and granites (igneous).

Six physiographic divisions:

  1. The Northern and North-eastern Mountains
  2. The Northern Plain
  3. The Peninsular Plateau
  4. The Indian Desert
  5. The Coastal Plains
  6. The Islands

Northern and North-Eastern Mountains

Approximate length of the Great Himalayan range: 2500 KM. Width: 160-400 KM

Impact of Himalayas on the climate of India?

It can be divided into five sub-divisions:

  1. Kashmir (or Northwestern) Himalayas
  2. Himachal and Uttaranchal Himalayas
  3. Darjeeling and Sikkim Himalayas
  4. Arunachal Himalayas
  5. Eastern Hills and Mountains

Kashmir Himalayas

  • Ranges: Karakoram, Ladhakh, Zaskar, Pir Pinjal
  • Glaciers: Baltoro, Siachen
  • Passes: Zoji La (Great Himalayas), Banihal (Pir Pinjal), Photu La (Zaskar) and Khardung La (Ladakh)
  • Lakes: (freshwater) Dal and Wular; (saltwater) Pangong Tso and Tso Moriri
  • Pilgrimage: Vaishno Devi, Amarnath Cave, Charar-e-Sharif
  • They are also famous for Karewa formations which are useful for the cultivation of Zafran (a local variety of Saffron). Karewas are the thick deposits of glacial clay and other materials embedded with moraines.
  • Kashmir is located on the banks of Jhelum river.
  • Meanders is a typical feature associated with the rivers in this region.
  • In South, there are longitudinal valleys called duns; Jammu dun and Pathankot dun

 

Himachal and Uttarakhand Himalayas

  • Lies between rivers Ravi and Kali
  • Drained by two major river systems: Indus and Ganga
  • Northernmost part is an extension of the Ladakh desert, lies in Spiti.
  • Ranges: Great Himalayan Range, Lesser Himalayas (Dhaoladhar in HP and Nagtibha in Uttarakhand), Shivalik range
  • Pilgrimage: Gangotri, Yamunotri, Kedarnath, Badrinath, Hemkund Sahib and the five famous prayags (Refer to Panch Prayag)
  • Famous for hill stations: Dharamshala, Mussoorie, Shimla, Kaosani; Cantt.: Kasauli, Almora, Lansdowne, Ranikhet
  • The important distinguishing features of this area are the ‘Shivalik’ and ‘Dun formations’.
  • Important duns: Chandigarh-Kalka, Nalagarh, Dehra, Harike, Kota
  • Dehradun is the largest of all duns: Length – 35-45 KM, Width: 22-25 KM
  • Inhabited with the Bhotia They migrate to higher reaches (Bugyals) in summer and return to the valleys during winters.

 

Darjeeling and Sikkim Himalayas

  • Between Nepal Himalayas and Bhutan Himalayas.
  • Fast flowing rivers such as Tista
  • Peaks: Kanchenjunga
  • Tribe: Lepcha
  • Has a mixed population of Nepalis, Bengalis and tribals from Central India.
  • Importance: Due to the moderate slope, it is best suited for tea plantations. <India produces about 26 pc of tea in the world; second after China. Also, accounts for 12 pc of tea exports; fourth in the world.>
  • Duar formations are peculiar to this region.

 

Arunachal Himalayas

  • From Bhutan Himalayas to Diphu pass in the east.
  • Direction: Southwest to Northeast
  • Peaks: Kangtu and Namya Barwa
  • Rivers: Brahmaputra, Kameng, Subansiri, Dihang, Dibang and Lohit.
  • These rivers are perennial and have the highest hydro-electric power potential in the country.
  • Tribes: Monpa, Daffla, Abor, Mishmi, Nishi and Nagas
  • These communities practice shifting cultivation known as Jhumming.

 

Eastern Hills and Mountains

  • Direction: North to South
  • Ranges: Patkai Bum, Naga hills, Manipur hills, Mizo or Lushai hills
  • These are low hills
  • Tribes practice Jhum cultivation
  • Rivers: Barak. Most of the Nagaland rivers form a tributary of Brahmaputra. Rivers in eastern Manipur are the tributaries of Chindwin, which in turn is a tributary of the Irrawady of Myanmar.
  • Lake: Loktak
  • Loktak Lake: is an important lake in Manipur which is surrounded by mountains on all sides. It is the largest freshwater lake in northeastern India. Also called the only Floating Lake in the world due to floating masses of organic matter on it. It serves as a source for hydropower generation, irrigation and drinking water supply.
  • Keibul Kamjao National Park located in the Bishnupur district of Manipur is the only floating park in the world and is an integral part of the Loktak Lake. Home to the endangered Manipur Eld’s Deer or Brow-antlered Deer or Sangai or Dancing Deer.
  • Mizoram is also known as the ‘Molassis basin’ which is made up of soft unconsolidated deposits.

The Northern Plains

  • Formed by the alluvial deposits of rivers – Indus, Ganga and Brahmaputra.
  • Length: 3200 KM; Width: 150-300 KM

Three main zones:

  1. Bhabar
  2. Tarai
  3. Alluvial Plains (Khadar and Bangar)

Bhabar

  • Narrow belt. 8-10 KM wide.
  • Paralllel to Shivalik at the break-up of the slope. Hence, streams and rivers deposit heavy rocks (and at times disappear) in this zone.

Tarai

  • South of Bhabar. 10-20 KM wide.
  • Rivers re-emerge and create marshy and swampy conditions known as Tarai.

Alluvial Belt

  • South of Tarai.
  • Features of mature stage of fluvial erosional and depositional landforms such as sand bars, meanders, ox-bow lakes and braided channels. Riverine islands in Brahmaputra.
  • Brahmaputra takes a turn an almost 90 degree turn at Dhubri (Assam) before entering Bangladesh.

 

Peninsular Plateau

  • Bounded by the Delhi ridge, Rajmahal Hills, Gir range and Cardamom hills.
  • Made up of a series of patland plateaus: Hazaribagh, Palamu, Ranchi, Malwa, Coimbatore, Karnataka etc.
  • One of the oldest and most stable landmass of India.
  • Physiographic Features: Tors, block mountains, rift valleys, spurs, bare rocky structures, hummocky hills and quartzite dykes offering natural sites for water storage.
  • Black soil in western and northwestern parts.
  • Bhima fault in this region has frequent seismic activity (Lathur earthquake)
  • NW part also has ravines and gorges: Chambal, Bhind and Morena.

Three broad regions:

  1. Deccan Plateau
  2. Central Highlands
  3. Northwestern Plateau

Deccan Plateau

  • Bordered by Eastern Ghats, Satpura, Maikal range and Mahadeo hills
  • Important ranges: WG: Sahyadri, Nilgiri, Anaimalai and Caradamom hills; EG: Javadi hills, Palconda range, Nallamala Hills, Mahendragiri hills
  • EG and WG meet at Nilgiri hills.
  • Highest peak: Anaimudi (2695 m) on Anaimalai hills; Dodabetta (2637 m) on Nilgiri hills.
  • Rivers: Mahanadi, Godavari, Krishna, Kaveri etc.

Central Highlands

  • Bounded by the Aravali and Satpura range.
  • Relic mountains, highly denuded and form discontinuous ranges.
  • Near Jaisalmer it is covered by the longitudinal sand ridges and crescent-shaped sand dunes called barchans.
  • Elevation: 700-1000 m
  • Banas, a tributary of Chambal, originates in the Aravalli. Other tributaries of Yamuna originate from the Vindhyan and Kaimur ranges.
  • Minerals in Chotanagpur plateau.

 

Northeastern Plateau

  • Extension of the main Peninsular plateau.
  • Meghalaya and Karbi Anglong plateau.
  • Megahalaya plateau: Garo hills, Khasi hills and Jaintia hills (named after the tribals inhabiting the region)
  • Rich in minerals like coal, iron, sillimanite, limestone and uranium.
  • Receives maximum rainfall from SW monsoon. Hence, Meghalaya plateau has a highly eroded surface. Cherrapuni and Myswarnam.

 

Indian Desert

  • Aka Marusthali
  • Northwest of the Aravali hills
  • Dotted with longitudinal dunes and barchans.
  • Low rainfall: >150 mm per year Low vegetation cover
  • Evidence that this area was under the sea during the Mesozoic era.
  • Features: mushroom rocks, shifting dunes and oasis.
  • Rivers are ephemeral: Luni. Brackish lakes. Inland drainage.

 

Coastal Plains

Two divisions:

  1. Western coastal plains
  2. Eastern Coastal Plains

Western Coastal Plains

  • Submerged coastal plain. Hence, a narrow belt. Narrow in middle and broader towards north and south.
  • Ports: Provides natural conditions for the development of ports and harbours due to submergence. Kandla, Mazagaon (Mumbai), JLN port Navha Sheva, Maramagao, Mangalore, Cochin etc.
  • Mumbai has the world’s largest natural harbour.
  • May be divided into: Kachchh and Kathiawar coast in Gujarat, Konkan coast, Goan coast and Malabar coast.
  • Rivers don’t form delta.
  • Kayals (Backwaters): Found in the Malabar coast. Used for fishing and inland navigation. Every year Nehru Trophy Vallamkali (boat race) is held in Punnamada Kayal in Kerala.

 

Eastern Coastal Plains

  • Broader
  • Emergent coast. Hence, less number of ports and harbours. Chennai, Vizag, Paradwip, Haldia.
  • Delta formation

The Islands

Two major Divisions:

  1. Andaman and Nicobar
  2. Lakshwadeep & Minicoy

 

Andaman and Nicobar

  • Two major island groups: Ritchie’s archipelago and the Labrynth island.
  • The group is divided into: Andaman in the North and Nicobar in the South.
  • Andaman and Nicobar separated by the Ten Degree channel.
  • Barren Island
  • Peaks: Saddle Peak (N.Andaman – 738 m), Mt. Diavolo (Middle Andaman – 515 m), Mt. Koyob (S Andaman – 460 m) and Mt. Thuiller (Great Nicobar – 642 m)
  • Coral deposits found
  • Convectional rainfalls and equatorial type of vegetation.

Lakshadweep and Minicoy

  • Entire group built of coral deposits.
  • Total of 36 islands of which 11 are inhabited.
  • Smallest UT
  • Minicoy is the largest island
  • Separated by the 9 Degree Channel, north of which is the Amini Island and to the south Canannore island.
  • These islands have storm beaches consisting of unconsolidated pebbles, shingles, cobbles and boulders.