[Official] Commerce Optional | IAS Mains | Daily Initiative

Profile photo of Muskan Dalal Muskan Dalal
  • This is the official thread for Commerce & Accountancy optional. This is a self driven initiative for the aspirants with the above mentioned optional subject.


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  • Profile photo of Hema Lata Reddy Hema Lata Reddy @hema-lata-reddy

    Calculation of maximum number of shares which can be bought back – topic under chapter Buy Back of Shares is important ?

    Kindly clarify.

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      if you r covering any topic then cover it completely and this chapter is very important and very scoring As well so plz don’t ignore it .

    • Profile photo of Hema Lata Reddy Hema Lata Reddy @hema-lata-reddy

      Ok thank you for reply.

  • Profile photo of venkatesh venkatesh @nvenkatesh0003

    Anyone from chennai here??????? Please reply. Please. Please.

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92

    Attached

    Attachments:
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92

    In the age of start-ups, several new ventures such as Talview, PiQube, Zeta, and Belong — are bringing in better methods of recruiting, assessing candidates and managing employee payrolls.

    HRM in the age of start-ups

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Right .

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    T4 Selection process
    Dale Yoder -“Selection is the process of choosing among the candidates from within the organisations or from the outside , the most suitable person for the current position or for future position.”
    ☆imp) selection is a ‘Negative’ process because it involves rejection of unsuitable candidates .
    Process of Selection –
    ( The sequencing of steps may be vary from job to job and org to org e.g. some org may give importance to testing while other may emphasise on interviews and reference checks.)
    1 Preliminary Interview – misfit applicants r rejected .
    2 Selection Tests – tests are used to determine the applicant’s ability,aptitude , personality.
    3 Employment Interview – two way exchange of information and conducted to evaluate applicant acceptability and 360°check of personality .it can be 1)one to one 2) Sequential 3) panel
    4 Reference and backround checks – kha se tapke ho 😉
    5 Selection decision – It is made from the pool of candidates who pass the test , interview and reference checks .Hr manager plays crucial role in final selection .
    6 Physical examination- it’s time for Dangal 😉
    7 job offer – made through letter of appointment
    8 Contract of employment
    Note -Selection process does not and with executing employment Contract but it ends with searching those candidates who have not been selected and tell them what about the deficiencies which did not match the requirement of the organisation .

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Topic 3 Recruitment process
    Recruitment is the process of locating and encouraging potential applicants to apply for existing or anticipated job openings.
    Sources – Internal & External sources
    Internal sources -*Promotion *Transfer *Trainers * Informal search *Extention of Service *lent service *Internal advertisement
    External Sources-* Employment exchange * Educational institutions* referred by Unions,friends or relatives * emp of other org.
    process- REQUISITION》RECRUITMENT》APPLICATION BLANK 》TRADE TEST 》PSYCHOLOGICALTEST 》INTERVIEWING》MEDICAL TEST》ON THE JOB TEST AND SELECTION .

    Attachments:
  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Topic 2 – HR planning meaning and features, Hr planning process.
    1) HR planning is about
    Right person 》 At Right place》at Right time
    features or significance of HRP :-
    -Determines future needs of Manpower
    -Coping with Change
    – Recruitment of Talented Personnel
    – Development of Human Resources
    – Proper Utilisation of Human Resources
    – Uncertainty Reduction

    Levels of Human Resource Planning:

    Human resource planning is useful at different levels.

    At the National Level:

    Human resource planning by Government at the national level covers population projections, programme of economic development, educational and health facilities, occu­pational distribution and growth, mobility of personnel across industries and geographical regions.

    At the Sector Level:

    This would cover manpower requirements of the agricultural sector, indus­trial sector and service sector.

    At the Industry Level:

    This would forecast manpower need for specific industries, such as engineering, heavy industries, textile industries, plantation industries, etc.

    At the Level of Industrial Unit:

    It relates to the manpower needs of a particular enterprise.

    Attachments:
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92

    Understanding Forensic Audit

    With the ever-rising burden of Non Performing Assets (NPAs), RBI has asked Public Sector Banks to conduct a forensic audit of top 50 loan defaulters to separate genuine cases of business failure from those where funds have been diverted.

    A forensic audit is an examination and evaluation of a firm’s or individual’s financial information for use as evidence in court. A forensic audit can be conducted in order to prosecute a party for fraud, embezzlement or other financial claims. It is the process used to examine an individual’s or a company’s financial information for use as evidence in court.

    http://commerceforias.com/understanding-forensic-audit/

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      In public sector banks NPA surged by 1 lakh crore in 2016-2017 as per govt data and April to Dec 2016 the gross NPA was 6.06 crore .So my question is why we have that much high rates of NPA and what govt currently doing to resolve it ? ( except forensic audit ,it’s a check and proof not the solution for long term )
      over to you Sumant.

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Right Muskan. The huge quantum of NPAs is really worrisome for Indian economy. The economic survey 16-17 mentions about twin balance sheet problem in this context – overleveraged and distressed companies and the rising NPAs in Public Sector Bank balance sheets. Quoting from survey:

      The origins of the NPA problem lie not in the events of the past few years, but much further back in time, in decisions taken during the mid-2000s. During that period, economies all over the world were booming, almost no country more than India, where GDP growth had surged to 9-10 percent per annum.

      To gain from growth firms started increasing production by hiring labour aggressively, which in turn sent wages soaring. This investment was financed by an astonishing credit boom. There were also large inflows of funding from overseas. All of this added up to an extraordinary increase in the debt.

      But just as companies were taking on more risk, things started to go wrong.

      Costs soared far above budgeted levels, as securing land and environmental clearances proved much more difficult and time consuming than expected.
      At the same time, forecast revenues collapsed after the GFC.
      As if these problems were not enough, financing costs increased sharply.
      Firms that borrowed domestically suffered when the RBI increased interest rates to quell double digit inflation.
      And firms that had borrowed abroad when the rupee was trading around Rs 40/dollar were hit hard when the rupee depreciated.

      To tackle the issue of NPAs, several steps have been initiated like:
      – 5/25 refinancing scheme for infra sector
      – ARCs under SARFAESI act
      – Strategic Debt Restructuring (SDR)
      – Sustainable structuring of stressing assets (S4A)
      – Constitution of Debt Recovery Tribunal

      Most recently, PARA (Public Sector Asset Reconstruction Company) aka Govt owned Centralised Bad Bank is being talked about, given the current scale of the problem.

      For more detail refer: http://commerceforias.com/economic-survey-festering-twin-balance-sheet-problem/

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      very well explained sir and indeed there r several measures suggested by consultative committee and PARA is one of them which consider those NPA where where sector specific reform do not work but hope this will be cover up the failures of ARC and other one suggestion to Inflating criminal action against the big wilful defalters like Vijay Mallya .

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Right.

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    After a mutual decision of aspirants, commerce and accountancy optional will be discussed on every Saturday and Sunday .The topic for this weekend is
    Human resource Managment .
    The highlighted part is for Saturday and remaining for Sunday .

    Attachments:
    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Topic 1 – HRM meaning ,Nature ,Scope and functions
      HRM concept- HRM is the process which coordinate people with organisation and helps both to acheive each other goal.
      According to Edwin FLippo-” planning ,Organising ,directing ,controlling of procurement ,development, compensation,integration ,maintenance and separation of human resources to the end that individual , organisational and social objectives are achieved”
      Nature of HRM –
      * Pervasive – present in all org
      * Result oriented – focus on result rather than on rules.
      * Assigned jobs- ensure right person at right place .
      * Improve overall persona – focus on psychological and physicals aspects
      Human resources are multi dimensional in nature , In National point of view human resources refers to knowledge ,Skills , Creativity , Ability , talent obtained in the population but from individual prospective the represent the total of Inherent abilities,acquired knowledge and skills as per requirement of the Job .
      SCOPE
      Personal aspect -The scope of HRM is very wide:

      Personnel aspect-This is concerned with manpower planning, recruitment, selection, placement, transfer, promotion, training and development, layoff and retrenchment, remuneration, incentives, productivity etc.
      Welfare aspect-It deals with working conditions and amenities such as canteens, cruches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.
      Industrial relations aspect-This covers union-management relations, joint consultation, collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc.
      In HRM various washing methods are designed to help both the parties to acheive their goal and it is responsible for org and employees relationship .Today HRM plays a vital role in success of the org bcuz today there is lots of competition in the market and only that can company can survive which is strong internally to minimising effects of threats and external environment ,but for internal strength the Manpower should be effectively trained and every key employee have to be noticied to understand his behaviour and requirements bcuz a unlit candle can not lit the other one so as the individual in the org.if he/she is not satisfied with the working environment so he is bound to be less productive .

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Abhishek Kumar Abhishek Kumar @vickyabckumar

    Attached
    This is a detailed course of action followed by a student who cleared in 1st attempt with commerce as an optional .

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of venkatesh venkatesh @nvenkatesh0003

    Hai. me to commerce optional, anyone from chennai here? Anyone interested in group study?
    Mail id: n.venkatesh0003@gmail.com

  • Profile photo of Monika Mudgil Monika Mudgil @monikamudgil_66

    Guys ! Why are you not posting material???

  • Profile photo of Pankaj Agrawal Pankaj Agrawal @rock007agrawal

    Finally Something regards to Commerce optional 🙂

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Monika Sharma Monika Sharma @monika-sharma

    @contactss92
    Pls do provide information about insuranace & IRDIA

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      sure monika.

  • Profile photo of Monika Sharma Monika Sharma @monika-sharma

    Hey muskaan..love ur initiative.

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    This thread is only for serious candidates and those who have personal queries share there email id’s or mail us .plzz don’t comment here this space is only for discussing the optional.The space is limited so it should be use for topics discussion .Thank you

  • Profile photo of Pushpa Kumari Pushpa Kumari @pushpa-kumari

    Hi friends, I am CA and preparing for 2017 upsc attempt..plscan anyone guide me how to go about paper 1 and paper 2 of commerce optional?? i have started my preparation now

    • Profile photo of venkatesh venkatesh @nvenkatesh0003

      Where are you from mam?

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Smit Lodha Smit Lodha @smit-lodha

    How many of you have written Mains-2016?
    @sumant@muskan??

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      I skipped this attempt bcoz of CA final exams.

    • Profile photo of Smit Lodha Smit Lodha @smit-lodha

      Okay. Congratulations on becoming a Chartered Accountant!
      I gave Mains-2016 with commerce optional. If you don’t mind send me your mail-id, I wish to be in touch.

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Sure smit. You can reach me @ contactss92@gmail.com. All the Best for your result.

  • Profile photo of Parth Tarsariya Parth Tarsariya @parthtarsariya4451

    In Auditing, what syllabus one can expect? Because in 2013 Paper, Auditing questions asked are looks like out of syllabus even if questions are basic of auditing portion. So for same level, what content of auditing can be prepared for audit portion apart from those that mentioned in syllabus?

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Hey Parth.. Questions asked in 2013 paper relate to core auditing concepts. Instead of jumping directly to topics specified in auditing syllabus, you are advised to cover these concepts. They will also help you to attain a better grip on the subject. you can cover these topics at http://commerceforias.com/auditing-basics-q-format/

    • Profile photo of Parth Tarsariya Parth Tarsariya @parthtarsariya4451

      Actually, i have already covered some basic portion. Can you outline the content on Audit topic which should be ideally cover?

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Refer SOL DU B.COM Material for Auditing for basics alongwith explicit syllabus. You can download material from the following link:

      PAPER 1


      Alternatively you can refer Aruna Jha Book/CA-IPCC Audit Book

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
    • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

      THanks from all side of all members

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Welcome. Glad could do something for commerce folks.

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Attached
    Next Topic will be – Cost accounting
    very easy and scoring subject .

    Attachments:
    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Topic 1 .cost accounting Nature,objective , functions and methods .
      Cost accounting – C.A is concerned with determining the costs of products/services and planning and controlling such cost.
      objectives of C.A :
      * To issue as a guide to price fixing of a product .
      * Disclose sources to Wastage in various operations of manufactures.
      * Reveal sources of Economy in production process .
      * Measure the degree of efficiency of the Various departments
      * Provide suitable means and information to the top management .
      * To excercise control over Cost ,time and efforts of Labour.
      Nature of cost accounting –
      # C.A is a branch of knowledge -organised body of knowledge consisting of its own principles ,concepts and Conventions .
      # C.A is a science – body of systematic knowledge in order to carry day to day activities and help in innovating new ways to control cost .
      # C.A is an art – Art in the sense as it requires the ability and skills in the part of cost accountant in applying the principle methods and techniques.

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Cost control techniques
      Cost Control system – In this variances are removed and every effort is made to get the optimum utilisation of resources by having actual costs in the complete grip of standard costs.
      Main features :
      * Continuous Process -regular check and record of Actual performance.
      * Static process – Standards/budgets are fixed .
      * Creation of Responsibilities Centre – Rights & responsibilities r well defined .
      * Motivating Employees -Voluntarily co-operation .
      *Optimum utilisation of resources – wastage and inefficiencies are restricted and emphasized on efficiency and quality .
      * Increase in the rate of return -Effective check and control over W astages boost up the productivity which benefits in competition n results higher ROI .
      Cost Control techniques –
      1 Budgetary Control techniques
      2 Standard Coating System
      3 Control Ratios
      4 Responsibility accounting
      5 productivity accounting
      6 Inventory cost control
      7 Accounting Ratios – operating cost ratio ,Gross profit ,Material consume ratio , Direct cost ratio .
      to be continue …

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      2016 Upsc Question paper 1
      Distinguish between techniques of Cosr control and Cost deduction n also Explain their implications on Decision-making .10 marks

    • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

      Awesome

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Precise & crisp. Great!

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Thank u Sir and You r doing great contribution to this thread.

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Thank you for your appreciation & comments. They will motivate me further to work harder in this direction.

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of saradha priya saradha priya @saradha-priya

    This is the official thread for Commerce & Accountancy optional. This is a self driven initiative for the aspirants with the above mentioned optional subject.

  • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

    Paper 2 : Organization Theory :

    Q.1 : “Bureaucracy is neither good nor bad ; it is only a type of rational structure of organizations.” Critically examine this statement. (200 words)Bureaucratic organisation type is one of the three prominent types of organisational structures in the classical approach. In this, Max Weber has provided organisational methodology for big organisations. Rule based approach, impersonal relationship, hierarchy and presence of administrative class are some of the key features of it.

    Before going into the question of bureaucracy being good or bad, we need to highlight its benefits and limitations.

    Benefits:

    a. It provides administrative class, which, co-ordinate the activities and which is selected on basis of merit;
    b. Adherence to rule becomes necessary for efficient output;
    c. Division of work and proper hierarchy helps in effective resource utilisation

    Limitations:

    a. Rule adherence becomes the end in itself and the effectiveness of work is judged on
    the basis of adherence to rules;
    b. Impersonality of relations sometime make the work more mechanical;
    c. Bureaucrats and professional sometimes face troubles in adjusting with each other.

    Now, as we have both benefits and limitations, we may draw some conclusion towards the given statement in the question. Any form of the organisation is suitable for some business conditions and becomes unsuitable for others. Thus, it is hard to state that one form of organisation is totally good or bad. Rather, it depends on the objective, level of professional involvement, level of organised activities and workplace. Thus, the statement stands correct to the large extent

  • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

    Paper 2 : Organization Theory :

    Q.1 : “Bureaucracy is neither good nor bad ; it is only a type of rational structure of organizations.” Critically examine this statement. (200 words)
    Indian business environment is constantly going through changes in which it is adopting new work styles and organisational forms. Business environment is said to be the sun total of its internal and external environment. External environment consists: social, political,
    technical, legal-rational and economic environment while affect the form and style of doing business.

    Indian business environment is unique and complex in many senses. It has the following key characteristics:

    1. Cultural and social differences such as: food habits, language, values etc. differs from
    North-to-South and from East-to-West;

    2. Multiparty democracy is giving space to small regional parties which are affecting the
    styles of doing business there;

    3. Lack of technological innovation and outdated production technology;

    4. Multiple
    legislation to govern business and many of them are old as 50 years;

    5. Though economic policies are sound, they are not much encouraging for investors.

    However, the business environment is changing continuously in case of India and this is giving birth to modern business and organisation types. Increasing collaboration with foreign
    companies is bringing different and improved work culture in the country. Software industry is one such example.

    Organisation shape if going through a sea of changes and old Indian style of having hierarchy based centralized organisations is giving way to horizontal and decentralized
    organisations. Culture of work-teams is going to get strong in the next one decade. Work-teams are working on principles of partnership where everyone brings his/her strength for the success of the team.

    With the increasing collaboration with the Japanese organisations, culture of flat organisation is also gaining momentum. Maruti is one such example. Cabin-less offices are gaining importance and informal groups are becoming melting point for cultural and linguistic
    differences.

    Virtual offices and boundary-less organisations are going to gain more importance in near future due to increasing use of internet. Thus, above would be some of the organisational
    forms in Indian business environment in coming one decade or so.
    Q.2 : “In view of the rapidly changing environment of the Indian business, what do you envisage to be the organization shape ten years hence.” (300 words)
    Bureaucratic organisation type is one of the three prominent types of organisational structures in the classical approach. In this, Max Weber has provided organisational methodology for big organisations. Rule based approach, impersonal relationship, hierarchy and presence of administrative class are some of the key features of it.

    Before going into the question of bureaucracy being good or bad, we need to highlight its benefits and limitations.

    Benefits:

    a. It provides administrative class, which, co-ordinate the activities and which is selected on basis of merit;
    b. Adherence to rule becomes necessary for efficient output;
    c. Division of work and proper hierarchy helps in effective resource utilisation

    Limitations:

    a. Rule adherence becomes the end in itself and the effectiveness of work is judged on
    the basis of adherence to rules;
    b. Impersonality of relations sometime make the work more mechanical;
    c. Bureaucrats and professional sometimes face troubles in adjusting with each other.

    Now, as we have both benefits and limitations, we may draw some conclusion towards the given statement in the question. Any form of the organisation is suitable for some business conditions and becomes unsuitable for others. Thus, it is hard to state that one form of organisation is totally good or bad. Rather, it depends on the objective, level of professional involvement, level of organised activities and workplace. Thus, the statement stands correct to the large extent

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92

    E-Repository of Useful Resources for Paper 1 & Paper 2. Do check out.

    PAPER 1

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92

    FAQ

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Current issues- What are the Pros and Cons of merging the Railway budget with the Union budget ?

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      On similar lines, another question can be on RATIONALE BEHIND PREPONING THE ANNUAL BUDGET.

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      PROS:
      *****
      *The merger will help the Railways get rid of the annual dividend they has to pay for gross budgetary support from the government every year.
      *It would help the Railways raise extra capital expenditure that would allow them to enhance connectivity in the country and boost economic growth.
      *The NITI Aayog had suggested this merger as the Railway budget was being used to dole out favours by way of new trains and projects.

      CONS:
      ****
      *Railways is unlike any other Central ministry in size and scope.
      *Unlike other ministries, it comprises a fairly detailed performance review, physical and financial, of the previous year and prospects for the current Budget year.
      *Now, the distribution and allocation of funds to various departments will all go under the finance ministry, which will take decisions according to rise and fall of budget. A fall in the annual budget will mean a similar cut in the railway and other budgets.
      * Under the garb of annual budget, govt will not shy away from raising fares which may not be commensurate with rail’s overall objective of “AFFORDABLE CONNECTIVITY”

  • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

    Paper 2 : Subject : Organizational Theory. : Evolution of Organization Theory :

    1. Modern organization theory , a new paradigm, is not merely an extension of the old, rather it is a fundamental reconstruction. Its premises are based upon a conception of an organization as open, organic, probabilistic system as opposed to closed mechanistic , deterministic system.” Do you think it constitute a real revolution in theory. ? (300 words)
    Modern organisation theories consist of theories which consider organisation as a system which consists various sub-systems such as : technical sub-system, environmental sub-system, social sub-system etc. Contingency approach towards organisation is also part
    of modern organisational theories and these theories differs from the classical and neo-classical theories in many ways. Old theories are based on deterministic and rule based approach, for instance: Scientific Management of Taylor or Administrative principles of Fayol or the bureaucratic approach of Max Weber.

    However, new theories are based upon the conception of organisation as more open, dynamic and organic system, this also gave birth to newer forms of organisations such as : Matrix , Project structure etc.

    Now the question comes as to whether these new changes are being able to bring new revolution in the organisational theory. The answer would be positive to a larger extent because the new organisation structures deviate from the old ones in a big manner. Older
    organisational theories have put emphasis on vertical management, while, modern
    theories lays emphasis on horizontal management. The concept of project structure
    brought the diversity and quality in the organisation.

    While the earlier approach towards organisation was deterministic which was working on rule based relations, the modern organisation theories are putting emphasis on the dynamic
    organisational environment at the forefront, thus deciding the organisational structure in a dynamic way which changes too often and which is not too rigid as old.

    Modern organisation theories put lesser emphasis on the control aspect and gives managers a freehand to an extent to cope with the market needs and draw the strategies accordingly.

    However, in the Indian context, the real revolution is still far, because of the nature of Indian business organisations which are still largely family based and more tend towards
    vertical organisation structure. Though, many new entrepreneurs are bringing new work and organisation culture, but, the stage of revolution is little far as of now from the Indian business organisations.

    2. “Contingency approach to organizational analysis is a common sense approach”. Comment. (200 words)
    Organisational analysis is a task of analysing various functions of the organisation in response to some crisis or as a regular exercise. In this, analysis is made for organisational goals, structures, opportunities and human resources etc. there are various approaches
    or tools available for this analysis and contingency approach is one such tool.

    Contingency approach is based on the notion that thare can be no single format that fits all problems. It states that, organisations are different, work in different environment and faces
    different problems and thus the solution also differs from one to another. Under this approach, different situations are analysed through different manners.

    However, the common sense approach is rather a loosely developed approach towards organisational analysis. This may work in normal business situations but may not that
    effective in complex environmental scenarios which requires expertise and skills. Moreover, common sense is not a well accepted universal concept because, a thing which is common to one person may not be common to other and thus the approach towards problem differs and also differs their solutions.

    Contingency approach is more organised way to address the situational factors which involves team work. However, common sense approach is largely based on one’s risk-taking capacity and gut-feeling which may fail if not properly assessed.

    Thus, it would be not correct to say that contingency
    approach of organisational analysis is common sense approach.

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      great keep it up .

    • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

      thanks madam

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    EVERY DAY ONE QUESTION WILL BE POSTED RELATED TO CURRENT ISSUES AND AIF ANYONE WANT TO DISCUSS about ANY SPECIFIC TOPIC OR ANY IMPROVEMENT IN COMMERCE OPTIONAL INITAITIVE THEN LET ME KNOW OR MAIL ME @ muskandalal26@gmail.com.
    Best wishes to all and rock on .
    DAY 1
    Q HOW does the demonisation drive of the goverment effect stock market in short run and in long run ? -15

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Great Initiative Muskan !

      Impact of demonetisation on stock Market:
      Short term-
      * adverse impact on performance of consumer discretionary companies due to constrained demand due to lack of cash.
      * Another hit can be expected as results of companies in Q3 will reflect such subdued demand.
      * market touching new lows as investors including FIIs exit the market. This was also bolstered by rising dollar & expectation of fed rate hike.
      * uncertaininty arising out of taxation of capital gains has also negatively impacted the market as govt seeks to bring stock market dealings in order as indicated in post demonetisation speeches.

      Long term-
      * As more funds flow into banks & other organised channels, chances of funneling of these into stock market are higher indicating potential upside.
      * The banks due to surge in deposits may further reduce their interest rates which will also boost investor preference towards stock markets
      * This will bolster the investment of these funds in different sectors incl infra which will be beneficial in the long run.
      * New investors may also enter market as cash may lose its sheen as safe asset.
      * As remonetisation occurs markets expected to gain to their earlier levels, though this may take time.

      Conclusion: Long term sentiment is positive due to expectation of increased funneling of funds in stock market. Positive cues are also expected in wake of GST & other ease of doing biz reforms.

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
  • Profile photo of Sumant Sharma Sumant Sharma @contactss92
    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      very nice Sumant Sharma,keep it up .

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Thanks! (y)

  • Profile photo of Parth Tarsariya Parth Tarsariya @parthtarsariya4451

    Can any one suggest, from where to prepare audit part?

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Aruna jha or CA ipcc auditing notes .

    • Profile photo of Parth Tarsariya Parth Tarsariya @parthtarsariya4451

      Thanx. Will follow your plan. Please cover current affairs issue especially for paper 1.

  • Profile photo of Sumant Sharma Sumant Sharma @contactss92

    COMMERCIAL BANKS & REFORMS IN BANKING STRUCTURE : PAPER 1

    COMMERCIAL BANKS AND REFORMS IN BANKING STRUCTURE

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    More than 8 question having 100 marks directly asked from Indian financial system in 2016 .
    Q-Explain Current Monetary policy -10
    Q-Evaluate the role of credit rating agencies. 10
    Q-Explain the relevance of time value of money in financial decisions. 10 (fm)
    Q-Diagrammatically present the DU pont chart to calculate return on equity .10(fm)
    Q-Enumerate the steps to be taken by an auditor before declaring an account as Non-performing Asset (NPA) in a bank audit . 20
    Q-Examine various measures taken by SEBI for the development of foreign institutional Investors and Venture capitalists .15
    Q-What are various insurance sectors reforms that have taken places in India during the period of liberalisation? 15
    Q-Write the important reforms that have taken place in the following sectors of 1991 -Banking sector,Primary & secondary Market ,External financial Market.15

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      INDIAN FINANCIAL SYSTEM: AN OVERVIEW

      The financial system is possibly the most important institutional and functional vehicle for economic transformation. Finance is a bridge between the present and the future and whether it be the mobilisation of savings or their efficient, effective and equitable allocation for investment, it is the success with which the financial system performs its functions that sets the pace for the achievement of broader national objectives.

      According to Robinson, the primary function of the system is “to provide a link between savings and investment for the creation of new wealth and to permit portfolio adjustment in the composition of the existing wealth.”

      Primary Function of the financial system is:
       mobilisation of savings,
       their distribution for industrial investment and
       stimulating capital formation to accelerate the process of economic growth.

      The process of savings, finance and investment involves financial institutions, markets, instruments and services. Above all, supervision control and regulation are equally significant. Thus, financial management is an integral part of the financial system.

      COMPONENTS OF INDIAN FINANCIAL SYSTEM:

      The basic structure of Indian Financial System is divided into four components which are:
      1. Financial Institutions
      2. Financial Markets
      3. Financial Instruments
      4. Financial Services

      Financial Instrument
      Financial Instrument is a trade-able asset which can be in terms of cash, agreement, evidence of an ownership in an entity; or a contractual right which has the right to deliver cash or any kind of asset.

      Financial Intermediaries

      A financial intermediary is an institution which connects the deficit and the surplus. The best example of an intermediary can be a bank which transforms the bank deposits to bank loans. The role of financial intermediary is to channel funds from people who have extra inflow of money i.e., the savers to those who do not have enough money to fulfill the needs or to carry out the basic activities i.e. the borrowers.

      Financial Services

      As the name suggests financial services are the services provided by the Financial Institutions. These services generally include the banking services, Foreign exchange services, investment services, insurance services and few others. Following is a very brief description of the services
      1. Banking Services – Includes all the operations provided by the banks including to the simple deposit and withdrawal of money to the issue of loans, credit cards etc.
      2. Foreign Exchange services – this includes the currency exchange, foreign exchange banking or the wire transfer
      3. Investment Services – It generally includes the asset management, hedge fund management and the custody services
      4. Insurance Services – It deals with the selling of insurance policies, brokerages, insurance underwriting or the reinsurance
      5. Some of the other services include the advisory services, venture capital, angel investment etc.

      Financial Market

      Financial Market is a mechanism that allows people to indulge themselves in the buying and selling i.e. trade of financial securities (for example stocks and bonds), commodities (for example precious metals) at prices that reflect the market’s effectiveness.

      Classification of Financial Market

      A financial market consists of two major segments: (a) Money Market; and (b) Capital Market. While the money market deals in short-term credit, the capital market handles the medium term and long-term credit.

      Financial Market Classification
      A. Money Market.
      i. Call Money.
      ii. Treasury Bill.
      iii. Commercial Paper.
      iv. Certificate of Deposit.
      v. Trade bill.
      B. Capital Market.
      i. Securities Market
      a. Primary Market : IPOs, Book Building, Private Placements.
      b. Secondary Market : Equity Market, Debt Market, Commodity Market, Futures and Options Market. (Secondary Market can be basically divided into two – spot market and forward market. Forward market has two divisions – futures and options/derivatives. Again, there are two types of options – put option and call option.)
      ii. Non-Securities Market
      a. Mutual Funds.
      b. Fixed Deposits, Savings Deposits, Post Office savings.
      c. Insurance.

      Money Market
      The money market is a market for short-term funds, which deals in financial assets whose period of maturity is upto one year. It should be noted that money market does not deal in cash or money as such but simply provides a market for credit instruments such as bills of exchange, promissory notes, commercial paper, treasury bills, etc. These financial instruments are close substitute of money. These instruments help the business units, other organisations and the Government to borrow the funds to meet their short-term requirement.
      The Indian money market consists of Reserve Bank of India, Commercial banks, Co-operative banks, and other specialised financial institutions. The Reserve Bank of India is the leader of the money market in India. Some Non-Banking Financial Companies (NBFCs) and financial institutions like LIC, GIC, UTI, etc. also operate in the Indian money market.

      Capital Market
      Capital Market is an institutional arrangement for borrowing medium and long-term funds and which provides facilities for marketing and trading of securities. So it constitutes all long-term borrowings from banks and financial institutions, borrowings from foreign markets and raising of capital by issue various securities such as shares, debentures, bonds, etc. The securities market has two different segments namely primary and secondary market.
      Primary Market vs Secondary Market : The difference between the primary capital market and the secondary capital market is that in the primary market, investors buy securities directly from the company issuing them, while in the secondary market, investors trade securities among themselves, and the company with the security being traded does not participate in the transaction. When a company publicly sells new stocks and bonds for the first time, it does so on the primary capital market. In many cases, this takes the form of an initial public offering, or IPO.
      Secondary Markets or Stock Exchanges : The functions of a stock exchanges are :
      • to provide ready and continuous market for securities,
      • information about prices and sales.
      • safety to dealings and investment.
      • helps mobilisation of savings and capital formation.
      • it acts as a barometer of economic and business conditions.
      • helps in better allocation of funds.
      But they also suffer from limitations like exclusive speculation and fluctuation in prices due to rumours and unpredictable events.

      There are 21 stock exchanges in India presently, including BSE, NSE and OTCEI. Stock Exchanges are regulated by the Securities Contracts (Regulation) Act and by SEBI. SEBI has initiated a number of reforms in the primary and secondary market to regulate the stock market. Documentary and procedural requirements for listing and trading have been made stricter and foolproof to protect investors’ interest.
      The secondary market has further two components:
      • First, the spot market where securities are traded for immediate delivery and payment.
      • The other is forward market where the securities are traded for future delivery and payment. This forward market is further divided into Futures and Options Market (Derivatives Markets). In futures Market the securities are traded for conditional future delivery whereas in option market, two types of options are traded. A put option gives right but not an obligation to the owner to sell a security to the writer of the option at a predetermined price before a certain date, while a call option gives right but not an obligation to the buyer to purchase a security from the writer of the option at a particular price before a certain date.

      Liberalisation of The Financial System:
      A radical restructuring of the economic system consisting of industrial deregulation, liberalisation of policies relating to foreign direct investment, public enterprise reforms, reforms of taxation system, trade liberalisation and financial sector reforms have been initiated in 1992- 93.
      Financial sector reforms in the area of commercial banking, capital markets and non-banking finance companies have also been undertaken.
      The focus of reforms in the financial markets has been on removing the structural weaknesses and developing the markets on sound lines. The money and foreign exchange market reforms have attempted to broaden and deepen them. Reforms in the government securities market sought to smoothen the maturity structure of debt, raising of debt at close-to-market rates and improving the liquidity of government securities by developing an active secondary market. In the capital market the focus of reforms has been on strengthening the disclosure standards, developing the market infrastructure and strengthening the risk management systems at stock exchanges to protect the integrity and safety of the market.
      Since the liberalisation of the economy in 1992-93 and the initiation of reform measures, the financial system is getting market-oriented. Market efficiency would be reflected in the wide dissemination of information, reduction of transaction costs and allocation of capital to the most productive users. Further, freeing the financial system from government interference has been an important element of economic reforms.

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Great info I have shared and keep it up .

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      MONEY MARKET: Participants, Structure and Instruments.
      *******************************************************************

      MEANING OF MONEY MARKET:-
      *****************************************
      A money market is a market for borrowing and lending of short-term funds. It deals in funds and financial instruments having a maturity period of one day to one year. It is a mechanism through which short-term funds are loaned or borrowed and through which a large part of financial transactions of a particular country or of the world are cleared.
      It is different from stock market. It is not a single market but a collection of markets for several instruments like call money market, Commercial bill market etc.
      *The Reserve Bank of India* is the most important constituent of Indian money market. Thus RBI describes money market as “the centre for dealings, mainly of a short-term character, in monetary assets, it meets the short-term requirements of borrowers and provides liquidity or cash to lenders”.

      FUNCTIONS OF MONEY MARKET :-
      ******************************************
      1) It caters to the short-term financial needs of the economy.
      2) It helps the RBI in effective implementation of monetary policy.
      3) It provides mechanism to achieve equilibrium between demand and supply of short-term funds.
      4) It helps in allocation of short term funds through money market Instruments.
      5) It also provides funds to the government to meet its deficits.
      6) It facilitates economic development.

      PLAYERS OF MONEY MARKET:-
      *************************************
      In money market transactions of large amount and high volume take place.
      It is dominated by small number of large players.
      In money market the players are :-
      Government, RBI, DFHI (Discount and finance House of India) Banks, Mutual Funds, Corporate Investors, Provident Funds, PSUs (Public Sector Undertakings), NBFCs (Non-Banking Finance Companies) etc.
      The role and level of participation by each type of player differs from that of others.

      COMPONENTS OF INDIAN MONEY MARKET :-
      ******************************************************
      Indian money market is characterised by its dichotomy i.e. there are two sectors of money market. The organised sector and unorganised sector.
      The organised sector is within the direct purview of RBI regulations.
      The unorganisedsector consist of indigenous bankers, money lenders, non-banking financial institutions etc.

      Organised Sector Of Money Market :-
      *****************************************
      Organised Money Market is not a single market, it consist of number of markets. The most important feature of money market instrument is that it is liquid. It is characterised by high degree of safety of principal.

      Following are the instruments which are traded in money market:

      1) Call And Notice Money Market :-
      The market for extremely short-period is referred as call money market. Under call money market, funds are transacted on overnight basis. The participants are mostly banks. Therefore it is also called Inter-Bank Money Market. Under notice money market funds are transacted for 2 days and 14 days period. The lender issues a notice to the borrower 2 to 3 days before the funds are to be paid. On receipt of notice, borrower have to repay the funds.
      In this market the rate at which funds are borrowed and lent is called the call money rate. The call money rate is determined by demand and supply of short term funds. In call money market the main participants are commercial banks, co-operative banks and primary dealers. They participate as borrowers and lenders. Discount and Finance House of India (DFHI), Non-banking financial institutions like LIC, GIC, UTI, NABARD etc. are allowed to participate in call money market as lenders.

      2) Treasury Bill Market (T – Bills) :-
      This market deals in Treasury Bills of short term duration issued by RBI on behalf of Government of India. At present three types of treasury bills are issued through auctions, namely 91 day, 182 day and 364day treasury bills. State government does not issue any treasury bills. Interest is determined by market forces. Treasury bills are available for a minimum amount of Rs. 25,000 and in multiples of Rs. 25,000. Periodic auctions are held for their Issue.
      T-bills are highly liquid, readily available; there is absence of risk of default. In India T-bills have narrow market and are undeveloped. Commercial Banks, Primary Dealers, Mutual Funds, Corporates, Financial Institutions, Provident or Pension Funds and Insurance Companies can participate in T-bills market.

      3) Commercial Bills :-
      Commercial bills are short term, negotiable and self liquidating money market instruments with low risk. A bill of exchange is drawn by a seller on the buyer to make payment within a certain period of time. Generally, the maturity period is of three months. Commercial bill can be resold a number of times during the usance period of bill. The commercial bills are purchased and discounted by commercial banks and are rediscounted by financial institutions like EXIM banks, SIDBI, IDBI etc.
      In India, the commercial bill market is very much underdeveloped. RBI is trying to develop the bill market in our country. RBI have introduced an innovative instrument known as “Derivative .Usance Promissory Notes, with a view to eliminate movement of papers and to facilitate multiple rediscounting.

      4) Certificate Of Deposits (CDs):-
      CDs are issued by Commercial banks and development financial institutions. CDs are unsecured, negotiable promissory notes issued at a discount to the face value. The scheme of CDs was introduced in 1989 by RBI. The main purpose was to enable the commercial banks to raise funds from market. At present, the maturity period of CDs ranges from 3 months to 1 year. They are issued in multiples of Rs. 25 lakh subject to a minimum size of Rs. 1 crore. CDs can be issued at discount to face value. They are freely transferable but only after the lock-in-period of 45 days after the date of issue.
      In India the size of CDs market is quite small.
      In 1992, RBI allowed four financial institutions ICICI, IDBI, IFCI and IRBI to issue CDs with a maturity period of. one year to three years.

      5) Commercial Papers (CP) :-
      . Commercial Papers wereintroduced in January 1990. The Commercial Papers can be issued by listed company which have working capital of not less than Rs. 5 crores. They could be issued in multiple of Rs. 25 lakhs. The minimum size of issue being Rs. 1 crore. At present the maturity period of CPs ranges between 7 days to 1 year. CPs are issued at a discount to its face value and redeemed at its face value.

      6) Money Market Mutual Funds (MMMFs) :-
      A Scheme of MMMFs was introduced by RBI in 1992. The goal was to provide an additional short-term avenue to individual investors. In November 1995 RBI made the scheme more flexible. The existing guidelines allow banks, public financial institutions and also private sector institutions to set up MMMFs. The ceiling of Rs. 50 crores on the size of MMMFs stipulated earlier, has been withdrawn. MMMFs are allowed to issue units to corporate enterprises and others on par with other mutual funds. Resources mobilised by MMMFs are now required to be invested in call money, CD, CPs, Commercial Bills arising out of genuine trade transactions, treasury bills and government dated securities having an unexpired maturity upto one year. Since March 7, 2000 MMMFs have been brought under the purview of SEBI regulations.

      7) The Repo Market ;-
      Repo was introduced in December 1992. Repo is a repurchase agreement. It means selling a security under an agreement to repurchase it at a predetermined date and rate. Repo transactions are affected between banks and financial institutions and among bank themselves, RBI also undertake Repo.
      In November 1996, RBI introduced Reverse Repo. It means buying a security on a spot basis with a commitment to resell on a forward basis. Reverse Repo transactions are affected with scheduled commercial banks and primary dealers.
      In March 2003, to broaden the Repo market, RBI allowed NBFCs, Mutual Funds, Housing Finance and Companies and Insurance Companies to undertake REPO transactions.

      8) Discount And Finance House Of India (DFHI)
      In 1988, DFHI was set up by RBI. It is jointly owned by RBI, public sector banks and all India financial institutions which have contributed to its paid up capital.It is playing an important role in developing an active secondary market in Money Market Instruments. In February 1996, it was accredited as a Primary Dealer (PD). The DFHI deals in treasury bills, commercial bills, CDs, CPs, short term deposits, call money market and government securities.

      Unorganised Sector Of Money Market :-
      ********************************************
      The economy on one hand performs through organised sector and on other hand in rural areas there is continuance of unorganised, informal and indigenous sector. The unorganised money market mostly finances short-term financial needs of farmers and small businessmen. The main constituents of unorganised money market are:-

      1) Indigenous Bankers (IBs)
      Indigenous bankers are individuals or private firms who receive deposits and give loans and thereby operate as banks. IBs accept deposits as well as lend money. They mostly operate in urban areas, especially in western and southern regions of the country. The volume of their credit operations is however not known. Further their lending operations are completely unsupervised and unregulated. Over the years, the significance of IBs has declined due to growing organised banking sector.

      2) Money Lenders (MLs)
      They are those whose primary business is money lending. Money lending in India is very popular both in urban and rural areas. Interest rates are generally high. Large amount of loans are given for unproductive purposes. The operations of money lenders are prompt, informal and flexible. The borrowers are mostly poor farmers, artisans, petty traders and manual workers. Over the years the role of money lenders has declined due to the growing importance of organised banking sector.

      3) Non – Banking Financial Companies (NBFCs)
      They consist of :-
      1. Chit Funds
      Chit funds are savings institutions. It has regular members who make periodic subscriptions to the fund. The beneficiary may be selected by drawing of lots. Chit fund is more popular in Kerala and Tamilnadu. Rbi has no control over the lending activities of chit funds.
      2. Nidhis :-
      Nidhis operate as a kind of mutual benefit for their members only. The loans are given to members at a reasonable rate of interest. Nidhis operate particularly in South India.
      3. Loan Or Finance Companies
      Loan companies are found in all parts of the country. Their total capital consists of borrowings, deposits and owned funds. They give loans to retailers, wholesalers, artisans and self employed persons. They offer a high rate of interest along with other incentives to attract deposits. They charge high rate of interest varying from 36% to 48% p.a.
      4. Finance Brokers
      They are found in all major urban markets specially in cloth, grain and commodity markets. They act as middlemen between lenders and borrowers. They charge commission for their services.

      FEATURES OF INDIAN MONEY MARKET:-
      ************************************************
      Dichotomic Structure : It is a significant aspect of the Indian money market. It has a simultaneous existence of both the organized money market as well as unorganised money markets.

      Seasonality : The demand for money in Indian money market is of a seasonal nature. India being an agriculture predominant economy, the demand for money is generated from the agricultural operations. During the busy season i.e. between October and April more agricultural activities takes place leading to a higher demand for money.

      Multiplicity of Interest Rates : In Indian money market, we have many levels of interest rates. They differ from bank to bank from period to period and even from borrower to borrower. Again in both organized and unorganized segment the interest rates differs.

      Lack of Organized Bill Market : In the Indian money market, the organized bill market is not prevalent.

      Absence of Integration: There is a lack of coordination among these different components of the money market. RBI has full control over the components in the organized segment but it cannot control the components in the unorganized segment.

      Limited Instruments : It is in fact a defect of the Indian money market. In our money market the supply of various instruments such as the Treasury Bills, Commercial Bills, Certificate of Deposits, Commercial Papers, etc. is very limited. In order to meet the varied requirements of borrowers and lenders, It is necessary to develop numerous instruments.

      Recent Reforms in Indian Money Market
      **********************************************
      Indian Government appointed a committee under the chairmanship of Sukhamoy Chakravarty in 1984 to review the Indian monetary system. Later Narasimham Committee was also set up. As per the recommendations of these study groups and with the financial sector reforms initiated in the early 1990s, the government has adopted following major reforms in the Indian money market.
      Reforms made in the Indian Money Market are:-

      Deregulation of the Interest Rate : In recent period the government has adopted an interest rate policy of liberal nature. Currently interest rates are determined by the working of market forces except for a few regulations.

      Money Market Mutual Fund (MMMFs) : In order to provide additional short-term investment revenue, the RBI encouraged and established the Money Market Mutual Funds (MMMFs) in April 1992. MMMFs are allowed to sell units to corporate and individuals.

      Establishment of the DFI : The Discount and Finance House of India (DFHI) was set up in April 1988 to impart liquidity in the money market. DFHI has played an important role in stabilizing the Indian money market.

      Liquidity Adjustment Facility (LAF) : Through the LAF, the RBI remains in the money market on a continue basis through the repo transaction. LAF adjusts liquidity in the market through absorption and or injection of financial resources.

      Electronic Transactions : In order to impart transparency and efficiency in the money market transaction the electronic dealing system has been started.

      Establishment of the CCIL : The Clearing Corporation of India limited (CCIL) was set up in April 2001. The CCIL clears all transactions in government securities, and repose reported on the Negotiated Dealing System.

      Development of New Market Instruments : The government has consistently tried to introduce new short-term investment instruments. Examples: Treasury Bills of various duration, Commercial papers, Certificates of Deposits, MMMFs, etc. have been introduced in the Indian Money Market.

      These are major reforms undertaken in the money market in India. Apart from these, the stamp duty reforms, floating rate bonds, etc. are some other prominent reforms in the money market in India. Thus, at the end we can conclude that the Indian money market is developing at a good speed.

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    INDIAN FINANCIAL SYSTEM WILL BE COVERED FROM 23 DEC -31 DEC -SOURCE M.Y KHAN

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      HEY! JUST DISCOVERED THIS INITIATIVE ON COMMERCE & ACCOUNTANCY OPTIONAL. I AM A CA & SCORED 290+ MARKS IN COMMERCE OPTIONAL IN 2014 ATTEMPT. I WOULD LOVE TO BE PART OF THIS INITIATIVE. KEEP IT UP !!!

    • Profile photo of sanchita bramhankar sanchita bramhankar @sanchitab392

      Hi Sumant. i would like to know how did you prepare for commerce optional..books referred and time allocation. Thanks in advance 🙂

    • Profile photo of Sumant Sharma Sumant Sharma @contactss92

      Hi.. you can refer to suggested readings section here. http://commerceforias.com/suggested-study-material/
      If you come from CA background then you can make a good use of your CA-IPCC material in Paper 1. Otherwise also you can refer the same as it is available free of cost on icai’s website.

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Current issue topic-
    What is ALGO trading? Examine the need of regulatory oversight on it ? Suggest any other novel methods to curb its misuse?
    Ans- ALGO trading -Algorithmic trading means placing automatic orders at stock exchange using advance mathematical models and high speed computation.
    Need of regulatory oversight-
    *40% trades in Indian share market are Algo trade.
    *Co-location-Big brkkers install server within premise which leads faster access to NSE/BSE data than others.
    *SEBI received complaint about NSE manipulation and Mal-practices.
    Novel methods-
    #The share allocation on random basis rather than first come first serve.
    #Speed bump should be installed which randomly delay bulk orders so ghat every one get equal opportunity to invest .
    Algo trading puts small investors at disadvantage ,NSEL commodity trading scam still fresh in their memory .so to ensure the flow os savings into financial instead of physical assets , it is necessary yo keep faith of small investors in the capital market .
    Hence strong framework is necessary to curb misuse of AlGO trading .

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Q-2(I) DEEP DISCOUNT BONDS (II)FLOATING RATE BONDS (III)EXTENDABLE NOTES (1V)JUNK BOND CSE 2015 (15 MARKS)

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      DEEP DISCOUNT BONDS :-A zero coupon bond is brought at lower price than its face value,with the face value repaid at the time of maturity. There is no coupon and periodic interest payment for these bonds.for instance -If the face value is 100 ,it is issued at a deep discount say at rs 80 and on the date of maturity the bond issuer pays the face value of the bond .

      FLOATING RATE BONDS -Those bonds whose interest raye fluctuates in step with the market interest rates or some other external measure. The price of floating bomds relatively stable because neither a capital gain nor a capital loss occurs as Market rates go up or down .for instance -A rate could be quoted as LIBOR+0.50,if LIBOR stood at 1% ,the rate would be 1.50.These bonds have high risk and high profitability element.

      Extendable notes-a long term bond yhat includes an option to lengthen the maturity period .It usually sell at higher price because of possibility of high return and extendable feature .If the maturity is extended the issuer continues to pay coupons.

      Junk bond -A high yielding,high risk security ,typically issued by a company seeking to raise capital quickly in order to finance a takeover.Most brokers do not invest in these bonds because they are likely to default that’s why they are known as junk bonds.

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Q- Banks are permitted to enter the insurance sector.critically evaluate the current scenario of Bancassurance in India.2014 CSE (150 words)

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      BANCASSURANCE Concept originated in FRANCE Which means the relationship between a bank and insurance company whereby the insurance co. Uses the bank sales channel in order to sell insurance product .Today the scenario has changed wherein insurance policies reach every person almost in every corner of the Nation ,no more cake of some classes.
      Merits-
      1. It encourages customers of banks to purchase insurance policies.
      2.The unaware people or not in reach of insurance policies can be benefitted through widely distributed banking networks.
      3.Increase in competition and hence people get better premium rates and services.
      Demerits
      1)Data management increase the workload for banks and contact details can be use by insurance co.to market thier own products ,thus compromising on data security.
      2)The conflict of interest can be arise between the other products of bank and insurance policies
      3) Bank goodwill also effected bcuz of insurance company .
      The RBI has recognised the need and implemented a Holistic approch to all the classes .so that financial resources in the hands of people should be channelised in effective manner and strengthen inclusive growth .
      approx 160 words

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    NEW TOPIC FOR THIS WEEK -SYLLABUS 2017-18 FOR C.S.E-FINANCIAL MARKET AND INSTITUTIONS :BOOK-M.Y KHAN
    1)Indian financial system-an overview
    2)Money market :participants,structure & instruments.
    *commercial banks,reforms in banking sector,Monetary and credit policy of RBI,RBI as regulator.
    3)capital market :primary and secondary markert.Financial market instrument and innovative debt instrument ,SEBI as regulator.
    4)financial services : MUTUAL FUNDS,VENTURE CAPITAL,CREDIT RATING AGENCIES,INSURANCE AND IRDA .
    THIS IS COMMON TOPIC FOR MANAGEMENT AND COMMERCE STUDENTS .

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Compared to factory workers,it is more difficult to attempt job analysis ,job description and job specification for the scientists and engineers working in research and development departments “comment.How does the HR department help management to address these challenges effectively ? 2015 CSE – 20 marks
    Q-2 360° feedback system is gaining popularity .comment. also examine the barriers to its effective implementation in India . 2015 CSE – 20 marks

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    3 days left for ob
    Q-1 Path goal theory of leadership (10 marks )
    Q-2 what is impact of ‘Helo effect’on performance Appraisal ? Explain . 2015 CSE
    Q-3 Banning lockouts – 10 marks 2015 CSE

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Helo effect – when one trait is used to make an overall judgement of that person or thing ex apple products .It was first introduced by Edward Throndike in 1920.
      Features of Helo effect –
      *Biased decisions
      *Rapid decisions
      *Unconscious judgement
      *Both positive and Negative directions.
      Effect on performance Appraisal –
      When a manager like or dislike an employee and allows their personal feelings about that employee to influence their performance rating of them so decision will be biased .In positive effect rate the emp.high rating even if he don’t deserve and vice versa in negative helo effect .
      The inaccurate distortion of a measurement or biasness errors may spoil the performance appraisal process so overall performance should be consider by manager so that the equality will be promoted and everyone get equal chances to improve themselves.

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Q-1 Internal vs external locus of control -150 words (2010 C.S.E )
    Q-2 What is virtual organization? .Examine its merits and demerits.150 words (2014 C.S.E)
    Q-3 Fishnet Organisation -150 (2014)
    Q-4 Managerial Grid -150 (2014)
    today questions r very easy bcuz now I m focusing more on concept clarity and Inclusive participation .

  • Profile photo of Mohita Roongta Mohita Roongta @mohitaroongta

    Hi, me too!

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Welcome Mohita Roongta

    • Profile photo of Mohita Roongta Mohita Roongta @mohitaroongta

      Nice thread will keep track and contribute! for paper 2, have u referred SP Robbins?

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    POSITIVE PSYCHOLOGY (AUTHANTIC HAPPINESS) – A scientific study of strengths that enable individual and communities to thrive. The beliefs that people want to lead meaningful and fulfilling lives to cultivate best in themselves and to enhance their experience of love ,work and play .
    PP is based on Martin Seligman (2003) theory of Authentic happiness which asserts 3 roads to good life -1)Pleasurable life (positive emotions),2)Engaged life (flow and mindfulness),3)Meaningful Life (meaning and purpose).IN 2011 Seligman revised it as WELL BEING THEORY with his new model PERMA (Positive relationship and Accomplishment were added ).
    THE Org. should ensure two fold promise while using pp-
    1) Optimism and cheerfulness have a measurable effect on the bottom line .
    2) Happiness is a muscle that you can strengthen .
    PP MODEL IN CONTEXT OF INDIAN COMPANIES :
    * PP can use by Indian companies to identify the strength of the workforce and assign job accordingly ex any person is having good communication skills then Marketing or public relations department should be allotted so that he gets the high job satisfaction and maximize his performance .
    *In cut-throat competition employees are handing lots of stress and workload so by using pp they enjoy healthy working environment which boost up their positive emotions and give their best in work .
    *The company can ensure lasting positive changes in the performance and relationships by stimulating the strength.
    *PP leads to less job turnover and less absenteeism which foster the growth of the company.
    MANY Successful companies like Google,Zappas,Alibaba have chief happiness officers and rely on outside consultant to implement massive well being initiatives.So Indian companies can do a lot and handle the market as well by applying pp model in the company because humans are the real assets of any company and when they are happy and satisfied with the working environment they can turn the threats into opportunities .

    • Profile photo of Urvashi Saini Urvashi Saini @caurvashisaini

      Hi .. We can add little case study in our positive psychology wala question right..

      I have one more query can we use tata mystery case for leadership or industrial dispute content right?

      I am not in schedule.. actually I go by book by book finish.. Right now in GS 3 then will start OB but I have CA background and mgt graduation background so I have idea regarding C & A optional..
      Interested in discussing previous year question: Problem is only available on sunday..
      reach me @saini.urvi@gmail.com

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Yes u can use the current example but try to maintain the balance or not tilt your answer in favor of Cyrus or tata group bcuz their r many things yet to decide in this case…but it is very suitable case for industrial dispute and conflict management. Thank u Urvashi be in touch ..

    • Profile photo of Urvashi Saini Urvashi Saini @caurvashisaini

      yes.. following the case that is why.. ! 🙂

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Yes u can use the current example but try to maintain the balance or not tilt your answer in favor of Cyrus or tata group bcuz their r many things yet to decide in ghis case…thank u ..

  • Profile photo of Venkat Dosapati Venkat Dosapati @umavenkateswarrao

    Really I o not have any idea what books I have to refer for paper 2 . Can you please share books for paper1,2 . As I am starting my preparation now I may not be at par with you but slowly I will pick up the speed

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      I m following my clg books and some other also for notes making ..imp thing for paper 2 notes making is very very imp …
      O.B- l.M prasad , fred luthans
      I.R -T.N chabra and Ministry of labour & Employment website (updated acts r thr )
      HRM -Ashwathapa
      Auditing-CA PCC notes
      Market & International Institutions – wiki but remember one thing only topic clarity is demanded in this exam not P.HD ..hope u understand what i want to convey ..and any problem in any topic in paper 2 then let me know .
      Thanks

    • Profile photo of Urvashi Saini Urvashi Saini @caurvashisaini

      Financial Market and institution it is right.. Bharthi Pathak book contain all points

    • Profile photo of Venkat Dosapati Venkat Dosapati @umavenkateswarrao

      Thank you muskan ! How long it will take to finish off paper 2 syllabus ?

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    ORGANISATIONAL.BEHAVIOUR Day 3
    Q-1 What is positive psychology? How can Indian companies use the concept of the same to foster entrepreneurial thinking in their workforce ? explain – 20 marks
    q-2 In post modern organisations traditional concept like line and staff functions irrelevant ? Do you think so ? give arguments in support of your answer . – 10 marks
    Q-3 What is meant by empowered organisations? suggest steps to foster an empowered organisations ? – 10 marks

    • Profile photo of Urvashi Saini Urvashi Saini @caurvashisaini

      Ans 2

      I. Four distinct ideas aid in understanding postmodern thinking.
      A. Identities are “made” or constructed out of popular culture.
      B. Moralities and ethics are also forged out of dialogue and choice.
      C. No style of art or culture dominates; there are endless variations.
      D. There is a truly global civilization characterized by rapid
      information exchange and unprecedented mobility.
      II. BMW plant in Spartanburg, SC is an example of a postmodern
      organization.
      A. Postmodernism is a move from signs to practices.
      B. Postmodernism is a move from democratic theory to a democratic
      workplace: a marriage of rights and responsibilities.
      C. Postmodernism is a move toward organizing multicultural
      communication in workplace democracies.
      D. Postmodernism facilitates multicultural understandings and
      international marketing practices.
      E. Postmodern theories embrace teams and global networks

      Line and staff organisation could not be said irrelevant if it focus upon its merit and minimize demerits. It possess feature which are in line with post modern concept such as :

      Benefit of Specialization- Line and staff through division of whole concern into two types of authority divides the enterprise into parts and functional areas. This way every officer or official can concentrate in its own area.
      Better co-ordination- Line and staff organization through specialization is able to provide better decision making and concentration remains in few hands. This feature helps in bringing co-ordination in work as every official is concentrating in their own area.
      Benefits of Research and Development- Through the advice of specialized staff, the line executives, the line executives get time to execute plans by taking productive decisions which are helpful for a concern. This gives a wide scope to the line executive to bring innovations and go for research work in those areas. This is possible due to the presence of staff specialists.
      Training- Due to the presence of staff specialists and their expert advice serves as ground for training to line officials. Line executives can give due concentration to their decision making. This in itself is a training ground for them.
      Balanced decisions- The factor of specialization which is achieved by line staff helps in bringing co-ordination. This relationship automatically ends up the line official to take better and balanced decision.
      Unity of action- Unity of action is a result of unified control. Control and its effectivity take place when co-ordination is present in the concern. In the line and staff authority all the officials have got independence to make decisions. This serves as effective control in the whole enterprise.

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      very nice and + = BMW ex is gud one ,unity of action nd R&D ,- = linkage is missing ,give one line intro atlist and conclude with crux of ur opinion .5/10, not considering words limit bcuz it is a practice session nd new start…but gud one.

    • Profile photo of Urvashi Saini Urvashi Saini @caurvashisaini

      hmm.. will keep in mind word limit…

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    I M SHARING HERE MY STRATEGY FOR OPTIONAL
    2-10 NOV =OB
    11-18 NOV =ORG.THEORY
    19-26 NOV =FINANCIALMARKET AND INSTITUTIONS
    27-2 DEC = HUMAN RESOURCE MANAGEMENT
    3 -7 DEC =AUDITING
    8-14 DEC = FINANCIAL MANAGEMENT
    15 DEC = REVISION
    16-24 DEC =FINANCIAL ACCOUNTING
    25 -31 DEC= COST ACCOUNTING
    1-7 JAN =INCOME TAX
    8 -10 JAN =REVISION
    11- 20 JAN= PAST YEAR PAPER AND REVISION OF PAPER 1 AND 2 .

    • Profile photo of Urvashi Saini Urvashi Saini @caurvashisaini

      Hey till 20 jan around my syllabus will be also finished for optional too… You can reach me that time as well for optional py paper discussion!

  • Profile photo of Hari Krishnan Hari Krishnan @hari-krishnan

    Hi dalal l too have commerce optional

  • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

    i am taking commerce and accountancy

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    ans-1 Org. citizenship is a sense of belonging to a particular org. with a very strong desire to remain member of that and exert high level of efforts on behalf of the org.
    The quality circle is a group of emp. who meet regularly to identify ,analyze and solve work related problems.
    EFFECTS OF ORG CITIZENSHIP IN QUALITY CICLE PERFORMANCE :
    *The strong commitment toward org goal will boost up the team spirit and enhance the performance of group.
    * This factor act as a strongest motivator which energies the members of QUALITY CIRCLE and productivity wl improve .
    *the acceptance of values and goal of org is the stable commitment and reduces the conflicts and use the opportunities in best way .
    THE org citizenship behavior is dream of every org because it is highly rated motivator and when it is accepted by the majority then it enormously improve the working of quality circles and when the move together in same direction it will square the power of team OC2 .

  • Profile photo of Aditya Kumar Aditya Kumar @adityabarun1996

    Let me know about the sllubus of commerce and accountancy

  • Profile photo of Confused Billi Confused Billi @confused

    Making this thread sticky for a few more days. Hope @muskandalal26 gets sincere students to join in.

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Thank u confused billi.

  • Profile photo of Aditya Kumar Aditya Kumar @adityabarun1996

    I want to know sllybus for accountancy and commerce

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    ORGANISATIONAL BEHAVIOUR –
    Q-1 ORG. Citizenship behavior enhances the effectiveness of Quality circle .comment-150 words (10 marks)
    Q- Pen down strike vs tool down strike -10 marks
    q-3 Behavioural Anchered Rating Scale -10 marks

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Attached

      Attachments:
  • Profile photo of Venkat Dosapati Venkat Dosapati @umavenkateswarrao

    Hey hi there ! Mine is commerce optional .

    • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

      Ok then start the preparation from 2 nov ..i will post questions daily @ morning .5 days for organisational behaviour.if anyone have any queries thn mail me @ muskandalal26@gmail.com. its better if anyone join this if not i will make it best by my own efforts.

    • Profile photo of Venkat Dosapati Venkat Dosapati @umavenkateswarrao

      All right !

  • Profile photo of Muskan Dalal Muskan Dalal @muskandalal26

    Dinesh then start our prepartion together bcuz as u knw we have opted for very different subject and vast also so answer practice will improve that and consistency is very imp for this optional .

    • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

      Thanks i thought of leaving the preparation even left it for 3 months now again i am back thanks for Motivation

    • Profile photo of Rohit Maurya Rohit Maurya @rohit-maurya

      Yup

  • Profile photo of Dinesh Singh Dinesh Singh @singhdineshsingh911

    yaa. say !!

This topic contains 135 replies, has 21 voices, and was last updated by Profile photo of Hema Lata Reddy Hema Lata Reddy 1 hour ago.



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