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Gramonnati Mandal’s

Arts, Commerce & Science College,Narayangaon.

Taluka-Junnar, District-Pune.

Maharashtra, India

(Affiliated to Savitribai Phule Pune University, Pune)

NAAC - Re-Accredited “A” Grade

Id No. - PU/PN/AC/099/(1993)

Website: www.acscnarayangaon.com

Email – [email protected]

International Conference

On

Recent Trends in Commerce

&

Management

Proceeding No 1 - January 2018

Published by

Aarhat Publication & Aarhat Journal’s

108,Gokuldham Park,Dr.Ambedkar Chowk,

Near TV Tower,Badlapur(E),421503

Email ID:[email protected]

Mobile No : 9822307164/8355852142

Gramonnati Mandal’s


Published by: Aarhat Publication & Aarhat Journal’s

Mobile No: 9822307164/8355852142

9th and 10th January 2018 ISSN 2278-5655 Volume–VII, Special Issue–I, EDITORS:

Disclaimer: The views expressed herein are those of the authors. The editors, publishers and printers do not guarantee the correctness of facts, and do not accept any liability with respect to the matter published in the book. However editors and publishers can be informed about any error or omission for the sake of improvement. All rights reserved. No part of the publication be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and or otherwise without the prior written permission of the publisher and authors.


Taluka-Junnar, District-Pune.Maharashtra, India

(Affiliated to Savitribai Phule Pune University, Pune) NAAC - Re-Accredited “A” Grade

Id No. - PU/PN/AC/099/(1993)

Website: www.acscnarayangaon.com

Email – [email protected]

Our Tribute

Late – Guruvarya R. P. Sabnis

Alise Nanasaheb Sabnis,

Founder Gramonnati Mandal

Patrons

Hon. Prakash Pate

President, Gramonnati Mandal

Hon. Anil Meher

Chairman, Gramonnati Mandal

Hon. RavindraPargaonkar

Secretary, Gramonnati Mandal

Editorial Board

Dr. J. P. Bhosale

Editor in Chief

Dr. S. D. Takalkar

Editor

Prin.S. S. Shewale

Principal

1.Dr. Arun Chainit (PhranakhonRajabhat University, Bangkok - Thailand)

2. Prin. Dr. Nar Bhahadur Bista (Director, University of Pokhara, Kathmandu, Nepal)

3. Dr. Md. Abdul Hakim (Bangladesh)

4. Dr. Radhe Shyam Pradhan, (Academic Director, Uniglobe College, Kathmandu, Nepal)

5. Dr. Miss. Hedhiya Dilsawar (Iran)

6. Dr. Gour Gopal Banik, (Gauhati Commerce College, Guwahati, Aasam)

7.Dr. D. B. Shinde (Principal, K. K. Wagh College, Pimpalgaon, Nashik)

8.Dr. Emelo Philip Rodriques (Professor, Goa University)

9.Dr. Sanjay Bhayani (Dean Management, Rajkot, Gujrat)

10.Dr. Ahmet Demir(Turkish, Iraq)

11. Dr. Pawan Kumar Poddar (Dean Management, Bhagalpur University, Bihar)

12.Dr.H.D.Thorat (Head Research,S.B.Patil Institute of Management, Pimpri, Pune)

13.Dr. Ali M. M. (Director, SIBER, Kolhapur)

14.Dr. G.H.Barhate(HeadResearch, C.D. Jain College, Shrirampur, Ahmednagar)

15. Dr. D.M. Gujrathi (Head Research, Malpani College, Sangamner)

Message from the Chairman

I congratulate the organizers of the International conference on behalf of

Gramonnati Mandal, Narayangaon, Pune Maharashtra, India. It is a very good

academic activity and I am sure it will motivate the researchers to undertake

further research. The conference will give quality impression about the activities of

our institute to the participants and will strengthen the confidence of our faculty.

The conferencedeals with the theme of International Conference on Recent

Trends in Commerce & Management.

I appreciate the initiative taken by Department of Commerce and Research

centre of thecollege in arranging this International Conference of interdisciplinary

nature providing widescope for researchers, teachers and students to interact on a

single platform. I hope there will be sincere and fruitful discussion on the Recent

Trends in Commerce and Management.

With best wishes…

Hon.Krushiratna Anil Meher

Chairman,

Gramonnati Mandal,

Naraynagon, Pune, India.

Message from Principal

I congratulate the whole team of Department of Commerce and Research

centreon behalf of GramonnatiMandal’s, Arts, Commerce and Science

CollegeNarayangaon, Pune Maharashtra, India. It is a very good academic activity

and I am sure it willmotivate the Teachers, Students &researchers to undertake

further academic activities. The conference will givequality impression of our

College activities to the participants and willstrengthen the confidence of our

faculty.

I hope there will be sincereand fruitful discussion on the topic “Recent

Trends in Commerce & Management.”

With best wishes…

Hon. Prin. S. S. Shewale

Principal,

Arts, Commerce & Science College,

Naraynagon, Pune, India.

EDITORIAL

In the era of Liberalization, Privatization & Globalization (LPG) the

unstable Environment in the corporate & social world created confusion in the

minds of stake holders. The reason for uncertainty is unstable socio-political

environment. Though the change is permanent upon earth, we have to prepare our

minds to accept and should digest the same. Each business entity have its own life.

It is always of limited number of years. We have to find result of uncertainty and

instability in the corporate world in various areas such as human resource,

Commerce, marketing, finance and day to day general management.

We the Gramonnati Mandal’s, Arts, Commerce & Science College,

Narayangaon, particularly the Department of Commerce and Research Centrehave

organized “International Conference on Recent Trends in Commerce &

Management.” We think it is a unique platform and golden opportunities for

academicians, Research Scholars, Faculty Members and students to present their

research work and share their knowledge with suggestions.

We are greatful to Gramonnati Mandal’s President Hon. PrakashPatil,

Chairman Hon. Anil Meher, Secretary Hon. RavindraPargaonkar, all Directors and

office bearers for their continuous motivation and help in organizing this

conference.

We also thankful to our principal Hon. S. S. Shewale who always appreciate

the efforts of faculty members and have assured to support and motivate the

academic and research activities.

We are sure that all of you will extend your cooperation to make this

conference a great success.

Dr. J. P. Bhosale

Editor in Chief &HOD – Research

Dr. S. D. Takalkar

Editor & HOD - Commerce

Aarhat Multidisciplinary International Education

Research Journal (AMIERJ) EduIndex Impact Factor 5.18 UGC Approved Journal No 48178, 48818

ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018

Index

Sr.

No. Name of Research Paper & Researcher

Page

No.

1

THE IMPACT OF BRAND EXPERIENCE ON BRAND

LOYALTY IN BANKING INDUSTRY

ZAHRA GHANDEHARI ALAVI

01

2

HEALTH AND SAFETY AT MANUFACTURING INDUSTRY

DR. MALLIKARJUNA N. L.

CHITRA

13

3

A CRITICAL STUDY ON CONSUMER BUYING BEHAVIOUR

TOWARDS INSTANT FOOD PRODUCTS WITH SPECIAL

REFERENCE TO BHAGALPUR CITY

PRIYADARSHI ASHOK

PRITI CHIRANIA

16

4

M-BANKING: ISSUES AND CHALLENGES IN INDIAN

BANKING SECTOR

DR. PAWAN KUMAR PODDAR

DR. QUAZI MD. KAMRAN

25

5

ANALYTICAL STUDY OF FRUITS & VEGETABLES

MARKETING IN PUNE DISTRICT

NILESH U BANKAR

DR. J. R. BHOR

30

6

FORENSIC ACCOUNTING AND FRAUD INVESTIGATION

CA MOTILAL B. BHAVNANI

37

7

EMERGING TRENDS IN BANKING INDUSTRY: CHALLENGES

AND PERSPECTIVES

DR. J. P. BHOSALE

44

8

HIGHER EDUCATION: NEED OF QUALITY IMPROVEMENT

DR. S. D. TAKALKAR

49

9

ENTREPRENEURSHIP DEVELOPMENT: A CRITICAL

ANALYSIS

PROF. SANTOSH RAM PAGARE

54

10

ROLE OF MOBILE BANKING IN THE PRESENT ERA

DR. MUNDE SANJEEVANI DASHRATHRAO

59

11

ELECTRONIC ACCOUNTING SYSTEM

PRIN. D. B. SHINDE

PROF. SAVITA KULKARNI-MAIRALPANT

63

12

TO STUDY OF HISTORY AND FUNCTIONS OF URBAN CO-

OPERATIVE BANKS

DR. SANJAY B. SHINDE

67

13

HUMAN RESOURCE MANAGEMENT AND PERFORMANCE: A

REVIEW AND RESEARCH AGENDA

VILAS NICHIT

70

14

ROLE OF FACULTY DEVELOPMENT PROGRAMS IN

IMPROVING TEACHING AND LEARNING

DR. SUNIL ZAGADE

75

15

MUDRA BANKING

DR. H. M. JARE

78

16

TIME MANAGEMENT: EFFECTIVE TOOL OF MANAGEMENT

DR. V. T. PATE

81

17

DIRECT BENEFITS TRANSFER (DBT) IN INDIA: ISSUES AND

CHALLENGES

DR. A. A.JAGADALE

86

18

M COMMERCE & ITS APPLICABILITY

DR.REKHA APPASAHEB KADHANE

91

19

RECENT TRENDS IN BANKING TECHNOLOGY

DR.PAWAR SUNIL DADARAM

96

20

TIME MANAGEMENT– IMPORTANT TIPS OF TIME

MANAGEMENT

PRANITA P. SAHANE

GOVIND H. SONAWANE

98

21

CURRENT TRENDS IN STRESS MANAGEMENT

PROF. DR. SHELAR B. A.

102

22

HUMAN RESOURCE ACCOUNTING (HRA)

DR. PACHORE ROHINI N.

106

23

STUDY OF IMPACT OF GOODS AND SERVICES TAX ON

SERVICE INDUSTRY. (HOTEL, EDUCATION, HEALTH)

PROF. DR. GADHE D. P.

110

24

A STUDY OF PREVIOUS TAX STRUCTURE AND GOODS AND

SERVICE TAX

DR. VAISHALI M. DESHPANDE

115

25

EFFECT OF GST ON INSURANCE

DR. RATI CHANDRA

119

26

THE IMPACT OF E COMMERCE IN DEVELOPING COUNTRIES

AND NEW EMERGING BRAND EXTENSION

SUROJIT SAHA

DEEPAK SINGH PARMAR

122

27

RECENT TRENDS IN NEWSPAPER MARKETING

NEETA MANOHAR KEDAR

DR. P. V. SATHE

130

28

BASIC CONCEPTS OF GOODS AND SERVICES TAX IN INDIA

SUPRIYA UTTAM JADHAV – HADAWALE

134

29

A FUTURISTIC STUDY OF E-BUSINESS MODEL WITH

REFERENCE TO ALL TRANSPORT INDIA PVT. LTD., DEOLA

DR. SUBHASH WADEKAR

139

30

IMPACT OF GOODS AND SERVICES TAX ON INDIAN

ECONOMY

DR. DEEPAK K. SURVASE

144

31

BLIND SPOT AND MARKET RISK

DR. SAROJ HIREMATH

148

32

IMPACT OF REMITTANCE ON ECONOMIC GROWTH AND

POVERTY ALLEVIATION IN NEPAL

Dr. NAR BAHADUR BISTA,

YEGYA BAHADUR K.C.

154

33

IMPACT OF CORPORATE GOVERNANCE ON DIVIDEND

POLICY OF NEPALESE ENTERPRISE

DR. RADHE S. PRADHAN

NITESH RAJ BARTAULA

OM SHRESTHA

POOJA GNAWALI

POSHAN LAMICHHANE

PRATIKSHA PARAJULI

167

34

FOREIGN DIRECT INVESTMENT: IMPACT ON INDIA

DR.J.P.BHOSALE

182

35

UNDERSTANDING THEBASIC OFBITCOIN

CA KIRAN GAJJAR

186

36

AN IMPACT OF STRATEGIC HUMAN RESOURCE

MANAGEMENT ON ORGANIZATIONAL PERFORMANCE

DR.KALHAPURE BALASAHEB. B.

192

37

CHALLENGES FACED BY BANK EMPLOYEES WITH THE

ADVENT OF INFORMATION TECHNOLOGY: A MODERN

OUTLOOK

AUSARE INDIRARANI YASHWANT

197

38

GST (ONE NATION ONE TAX)...A STUDY OF

IMPLEMENTATION AND CHALLENGES.

DR. D.D. BALSARAF

SHRUTI GANPULE

201

AMIERJ ISSN–2278-5655 Volume–VII, Special Issue–I, January 2018

Aarhat Multidisciplinary International Education Research Journal (AMIERJ) Page 1

EduIndex Impact Factor 5.18 UGC Approved Journal No 48178, 48818

THE IMPACT OF BRAND EXPERIENCE ON BRAND LOYALTY

IN BANKING INDUSTRY

ZAHRA GHANDEHARI ALAVI

Ph.D. Candidate

Department of Business Management,

Qazvin Branch, Islamic Azad

University, Qazvin, Iran.

FERESHTEH LOTFIZADEH

Assistant Professor of Marketing

Department of Business Management,

Zanjan Branch,Islamic Azad University,

Zanjan, Iran.

Abstract

With the advancement of technology and more competitive market conditions in

various manufacturing and service sectors, customer loyalty is as the main asset of a

company because customer loyalty leads to business success, increase profitability and

customer value creation. The present filed study, conducted with actual and legal costumers,

addresses the question whether different consumers prefer experimental appeals and

experimental types creates the relationship between brand experience, satisfaction and

loyalty. Brand experience is conceptualized as sensations, feeling, and cognitions and

behavioral responses. In this study, brand experience affects satisfaction and loyalty. In this

present research, we propose the effects of brand experiences with trust, service quality,

perceived value and loyalty. The study conducted on 372 respondents in City bank branches

in Tehran. This research is applied from the perspective objective and it is descriptive and

correlation from the method of data collection. As a result of this study all hypothesis were

confirmed.

Keywords: Brand experience, service quality, perceived value, trust, customer loyalty.

Introduction

Today, more than past, we see

increasing importance of the customization

which is the main competitive advantage of

organizations and its role in success and

progress of business. (Ranjbran, and kaboli

and sanayee, 2102). on the other hand given

the importance of customer in today's

competitive world, particularly in the

banking industry and according to research

that carried out the cost of attracting new

customer is more than the expense for

customer retention, examining ways to gain

and maintain customer loyalty has high

priorities. On the other hand, banks that are

economical and service enterprises like any

firm must earn profit to survive and develop,

and this profit also depends on attracting and

keeping customers. Moreover a new

category in the competition space between

banks is branding. Special attention to the

brand value, brand position, brand loyalty

and brand identity of goods and services

have been led many theorists, administrators

and researchers named the future world of

marketing to the brand world and the

activities of branding (Hung bon Kim and

Gon kim, 2005). So the development of

consumer-brand relationship has been focus

of branding theory in recent years. A brand

acts as a mechanism in engaging both buyer

and seller in a long-term consumer-brand

relationship. (Davis, Oliver and Brodie,

2000; Fournier, 1998; Keller 1993, 1998;

Rao and Ruekert, 1994) Notably, brand

experience has attracted a lot of attention in

marketing Practice. Marketing practitioners

have come to realize that understanding how

Consumers experience brands is critical for

developing marketing strategies for goods

and service (Brakus. Schmitt & Lia

Zarantonello 2009).in the other word, in a

complex and competitive environment in the

banking system, the slightest difference in

services along with increased customer

demand, leading to major changes in this

industry. The bank must identify the exact

dimensions of customer loyalty so that they

create some systems in order to implement

and guidance customer loyalty. Therefore to




achieve this goal in the City bank that is one

of the newly founded and private banks in

the country which is seeking to expand its

branches in other cities, the main question in

the this research is that which are the various

aspects influencing the ways to achieve and

maintain customer loyalty in the City bank

branches in Tehran? In this study, the

relationship between brand experience and

loyalty has been examined through three

variables involving service quality,

perceived value and ultimately in terms of

their effect on loyalty and trust were

examined and finally we studied their effect

on loyalty.

Literature Review

Development culture of the customer

through brand experience and its relation to

their loyalty to the organization is that a

discussion that has always been considered

by the experts and in the recent years

attempts have been made to increase the

quality of the product or service by

providing necessary approaches to

organizations(Jskv et al 2009). For as much

as, consumers are as a milestone in the

successful marketing activities and study on

the factors which affect consumer behavior

causes to access to knowledge and

understanding of consumer behavior

therefore Marketers will be able to provide a

product that is more adapted to the needs and

demands of consumers. In other words, they

offer a product which is a result of factors

influencing consumer behavior and it

provides maximum satisfaction. In

competitive marketing, loyalty is an essential

element of the marketing strategy by

reduction the predictive power and

difference between products. (Yearend &

yaw, 1997).

Brand experience

Most of the research on experiences

to date has focused on utilitarian product

attributes and category experiences, not on

experiences provided by brands. Brand

experience is conceptualized as sensations,

feelings, cognitions and behavioral

responses evoked by brand-related and

stimuli that are part of a brand‘s design and

Identity, packaging, communications, and

environments (Brakus et al., 2009).

According to Alloza (2008), brand

experience can be defined as the perception

of the consumers, at every moment of

contact they have with the brand, whether it

is in the brand images projected in

advertising, during the first personal contact,

or the level of quality concerning the

personal treatment they receive. Brand

experience is created when customers use

the brand; talk to others about the brand;

seek out brand Information, promotions, and

events, and so on (Ambler et al.,

2002).Brand marketers must bond with

consumers by staging holistic brand

experiences (e.g., Schmitt 1999, Pine and

Gilmore, 1999).The marketing activities

associated with the brand, effects the

consumers" mind-set" with respect to the

brand-what they know and feel about the

brand. The customer mind-set everything

that exist in the minds of customers with

respect to a brand; thoughts, feelings,

experiences, images, perceptions, beliefs,

attitudes and so on, that is, brand equity as

defined by Ambler (2000). When consumers

search for, shop for, and consumer brands,

they are exposed to utilitarian product

however; they are also exposed to various

specific brand-related stimuli, such as brand-

identifying colors (Belize and Hite, 1992;

Gorn et al., 1997; Meyers-Levy and

Peracchio 1995), shapes, typefaces,

background design elements(Mandel and

Johnson, 2002) , slogans, mascots, and brand

character (Keller Brakus et al., 2009). These

brand-related stimuli appear as part of a

brand's design and identity (e.g., name, logo,

signage), packaging, and marketing

communications (e.g., advertisements,

brochures, Web sites) and in environments

in which the brand is marketed or sold (e.g.,

stores, events).These brand related Stimuli

constitute the major source of subjective,

internal consumer responses, which is

referred as "brand experience" (Brakus, et

al., 2009). Thus, brand experience is

conceptualized as subjective, internal

Consumer responses (sensations feelings,




and cognitions) and behavioral responses

evoked by brand related stimuli that are part

of a brand's design and identity, packaging,

communications and environments. Brand

experience conceptualization and scale

development are very important for

understanding and managing brand trust and

loyalty concepts (Brakus et al, 2009). Brand

experience can be positive or negative,

short-lived, or long-lasting. Moreover, brand

experience can positively affect consumer

satisfaction and brand loyalty, as well as

brand trust (Zarantenello and Schmitt, 2000;

Ha and Perks, 2005). Brand experience is

empirically distinct from other brand and

customer-focused concepts including brand

attachment, brand involvement, and

consumer delight (Zarantenello and Schmitt,

2000).

Brand Loyalty

Loyalty, as defined by Oliver (1997),

is "a deeply held commitment to rebut or

repatronize a preferred product/service

consistently in the future, theory causing

repetitive same-brand or same brand-set

purchasing, despite situational influences

and marketing efforts having the potential to

cause switching behavior" (Chaudhuri and

Holbrook, 2001). In marketing literature the

term loyalty has often been used

interchangeably with its operational

(measurement) definition to refer to; repeat

purchase, preference, commitment and

allegiance. In addition, loyalty has been

referred to in a variety of market-specific

contexts, for example, service, store and

vendor loyalty, contexts that reflect the unit

of measurement; customer and brand loyalty

(Algesheimer et at., 2005).

Brand satisfaction

Satisfaction is defined as an effective

response to purchase situation (Babin and

Griffin, 1998; Bagozzi et al., 1999; Bennet et

al., 2005; Anderson and Narus, 1990).

Satisfaction is a positive affective reaction to

an outcome of a prior experience (Ganesan

1994). The satisfaction derived and attitude

formed as part of a prior experience

(Ganesan, 1994) then impacts on subsequent

purchases (Oliver, 1980), completing

cyclical pattern (Bennett et al, 2005).

Service quality

Parsam Introduced service quality is

as a result of the gap between customer

expectations and perception of service

received. (Venus 59, 2101). Customers often

compare services provided of an

organization by service of its expected. They

go back to this organization If services

provided prior to or at least equal to it's the

expected service. Thus it is the responsibility

of the service provider identifies and reviews

their customers' expectations about services

quality (Kotler and Armstrong.

Perceived value

Marketing activities have mainly

been established based on customer value

(Holbark 1994). Perceived customer value is

defined in marketing to assess the costs and

benefits gained from the purchase of a

product or service (Yang and Peterson

2004). Previous research suggests that

perceived value increases customer

satisfaction and future purchases (Jenkins

2010).

Brand Trust

Trust is essential in building strong

consumer-brand relationships (Fournier,

1998; Urban, Sultan, and Qualls, 2000), and

it is positively related to brand loyalty (Lau

and Lee, 1999). Consumers develop trust in

a brand based on positive beliefs regarding

their expectation for the behavior of the

organization and the performance of

products a brand represents (Ashley and

Leonard, 2009). Trust reflects cumulative

effects over time on loyalty in high-

involvement, high-service product markets

(Chiou and Droge, 2006).

The closest and most important

internal and external research done

previously in connection with the subject of

research has been mentioned in the

following:

Mohammad Ishaq in 2012 examined

customer loyalty by the three main variables

of service quality, perceived value and the

company's image. He has done a research in

the telecommunications industry in Pakistan




conclude that image company does not have

any influence on customer loyalty and vice

versa.

Table1- Pass related literature review

Survey Results Authors Affecting variables on brand

Positive influence satisfaction and

loyalty, trust and Loyalty and value

Special brand with satisfaction and

loyalty in banking industry.

Hosseini and

Ahmadinejad

(2008)

Satisfaction, trust, brand

equity in the bank

Confirmed the positive relationship

between service quality, perceived

value, customer satisfaction and trust

Rnjbrban,

Moradian,

industries (2012)

Perceived value, service

quality, customer

satisfaction,

Loyalty by Brand Citizen


between service quality and customer

satisfaction

Taleghani and

Mir Mousavi

(2011)

Customer satisfaction,

quality of service in banks

Confirm the relationship between

service quality, perceived value and

trust On customer satisfaction

Samadi and

Alexander

(2011)

Customer satisfaction,

service quality, perceived

value and trust

There is a positive relationship

between brand experience and loyalty

and between customer satisfaction

and loyalty .

Brakus. Schmitt

& Lia

Zarantonello (

2009)

Brand experience, loyalty,

customer satisfaction

Brand experience impact on trust,

brand reputation and customer

satisfaction

Thomas.

Veloutsou (

2011)

Brand experience, trust,

brand reputation, customer

satisfaction

Positive relationship between the

brand experience and trust

Positive relationship between brand

experience and satisfaction Positive

relationship between brand

experience and loyalty

Sahin.Zehir.Kita

pc(2011)

Brand experience, brand

trust, brand satisfaction and

brand loyalty

Confirm the relationship of trust and

satisfaction on the commitment and

relationship commitment and loyalty

on brand

Luarn & Lin

(2009)

Trust, satisfaction, perceived

value, commitment

Confirm the moderator role emotional

satisfaction to brand loyalty

Ebad Baig &

Khan (2010)

Emotional satisfaction,

customer satisfaction, brand

loyalty


between service quality and customer

satisfaction and Confirmed the

positive relationship between

satisfaction and brand loyalty

Yeung &

Leung(2011)

Service quality, perceived

value, satisfaction


between brand image and brand

loyalty by making adjustments

demographic variables

Hsiung (2011) Brand image and customer

satisfaction.


service quality and perceived value to

customer loyalty

Mirabi vahid

Reza &

vazifefdust

Customer loyalty in banking

services




Hossien &

Sabgoo Monsef

Seyed

Mahamoud

(2012)

Confirm Service quality, motivation

and behavior customer on the loyalty

Seth & Deshukh

(2006)

Service quality, motivation

and behavior customer on the

loyalty


perceived value and customer

experience

Scachez,

callarisa &

odriguez (2006)

Perceived value, brand

experience of tourism

Perceived value and service quality

are two factors affecting the level of

customer loyalty. He has been compared it to

other research in the American and European

countries and resulted culture plays an

important role in the loyalty of customers in

the telecommunications industry.

Yang and Peterson in 2004 examined

the issue of perceived value, satisfaction and

loyalty with respect to the switching cost.

These researchers collected used data

through review websites and sending 4000

emails to customers. Base on the results of

this research, the perceived value and

satisfaction have a meaningful and direct

relationship with loyalty of customers. It

shows that the switching cost as the

moderator variable compared with

satisfaction and perceived value has less

impact on loyalty.

In other research, Sahin et al (2005)

examined the effects of brand experience,

confidence and satisfaction on customer

loyalty of manufacturing company in

London. In their research they reviewed the

relationship between variables such as brand

experience and loyalty, brand experience and

satisfaction and satisfaction and loyalty and

all were confirmed. The findings also

indicated that satisfaction as a mediator

variable has been which has a significant

impact on customer loyalty. Briefly, table 1

summarizes the internal and external

research done in this field. As can be

observed in the relationship between brand

experience and loyalty has not been done a

lot. And abroad as well as researcher found a

few articles to be review.

Develop hypotheses and Conceptual

Model

A strong brand has a positive impact on

consumer attitudes toward the company's

identity. A positive attitude is shaped in

order to have a good experience. Awareness

of the brand name and logo has an effect on

the perceptual quality of the customer will

lead directly to loyalty (Keller, 1993). On

the other hand, development of relationships

between brands and consumers result in

focusing on the hypotheses brand so that

brand act as a mechanism that the stable

relationship can involve seller and buyer so

brand experience is the input and the brand

loyalty is output (Rovkt, 1994. Fournier,

1998. oliver, Brody and David, 2000). Sahin

et al (2005) in a study presented the effects

of brand experience, trust and satisfaction on

customer loyalty in an automobile factory

and they resulted that for customer loyalty,

companies need to feel satisfied with their

brand experience and encourage customers

to loyalty through trust. Also in 2009, an

investigation was carried by Bruck and

Brands that discussed the aspects of brand

experience and concluded relationship

between experience and brand loyalty is

positive. In this research, five features of

brand were examined including intimacy,

excitement, competence, sophistication and

violence and they announced there is a direct

relation between brand associations and the

degree of customer loyalty. In all of the

research that done the direct and positive




relationship between experience and brand loyalty are confirmed.

Figure1: Research Model ((Sahin et al., 2011)

In 2011, Azizi. Ketabi and Kamal

presented a model in an article that

investigates the effects of brand experience

and satisfaction in the structure of brand

loyalty that they reviewed the impact of the

brand experience on the satisfaction and

loyalty and resulted there is a Positive

relationship between the dependent and

independent variables.

In this model, the experience refers

to the response of consumer within a

specified time and brand experience includes

assessment, attachment, affiliation, brand

personality and customer delight. Brand

experience has an effect on behavior.

Directly and indirectly through impacts

customer satisfaction and loyalty to the

brand character. On the other hand, this

model is also based on an article Mirabi,

vazifedust and Shabgoo in 2012 that

customer satisfaction with the components

of service quality, perceived value and trust

has shown that separately and generally

brand experience is evaluated on each of

these components.

The conceptual model of this

research developed in the combination of

these two models.

Hypothesis in this research:

The current model in this study has

been developed from two researches. One of

them is Aziz Sahin, Kamal and KIyatibi, in

2011 presented a model of Brand,

Experience, and Satisfaction in Brand

Loyalty Structure. Another is Miraby,

Vazifedoost and Shabgoo in 2012 that

entitled ―design a model for describing

customer loyalty to brand and customer

satisfaction on loyalty‖.

Based on the conceptual model, research

hypotheses include:

H1: Brand experience has a positive effect

on loyalty.

H2: brand experience has a positive effect on

satisfaction

H2-1: brand experience has a positive effect

on perceived value

H2-2: brand experience has a positive effect

on service quality.

H2-3: brand experience has a Positive effect

on the trust

H3: satisfaction has a positive impact on

loyalty.

H3-1: perceived value has a positive effect

on loyalty.

H3-2: service quality has a positive effect on

loyalty.




H3-3: trust has a positive effect on loyalty

Research Methodology

This research In terms of methods

and implementation of descriptive -

analytical design with an emphasis on

correlation branches and in terms of goal is

applied type finally, in terms of method of

data collection and information, type of this

is field research. In the present study, in

order to use the views and attitudes of bank

customers, questionnaire is used, questions

in the questionnaire was designed in a way

that respondents, mark items based on the

five-interval Likert scale of very low to very

high.

In this study, to analyze the data and

hypotheses testing is used descriptive

statistics and structural equations method,

and for implementation of structural

equation model the LISREL software, was

used. One of the methods for reviews causal

relationships between variables is "structural

equations model". This method is mentioned

as a causal model. When the data obtained

from sample as correlation matrix or

becomes covariance and be defined by a set

of regression equations, model can be

analyzed by using (LISREL) software, and

test fitting of it for society that samples

extracted from. Statistical population of this

research involve real and legal customer of

City bank in Tehran that they have active

deposit account and use the banking services

more than 4 years. Sampling procedure of

this research is cluster that Tehran was

divided to the five regions North, South,

East, West and Center and the sample size

was estimated 384 by using the formula of

Cochran that at the end , among

questionnaires, 372returned questionnaires

were completed and the data was entered

into the system. The sample size was

obtained 372 in the Confidence level of 95%

and estimated error of % 5 in the Population.

To achieve the minimum required sample

survey (372 customers), 375 questionnaires

were distributed among bank customers.

Table 2- operational definition of variables Variable

Data Analysis and Findings

Table 4 shows Frequency distribution

of general or demographic variables. Based

on the table, 156 respondents are female and

216 males make up 58 percent of the

respondents. Also in Table 4, Frequency

distribution the other variables shown.

One sample Student‘s t-test

This study consisted of 5 variables

that each on has several agents. Brand

experience, perceived value and trust have 2




agents, service quality with 3 agents and the

loyalty has no agent. The researcher used

one sample T-test to determine the current

status of each question so that other

variables except the variable loyalty are in

proper status. The significance level for all

agents was tested that is smaller than the

error rate (0.05, therefore difference between

these questions and value of test is

significant and according to the amount of

T-Test and confidence interval, It can be said

the current status of each of the agents in the

study are greater than the value of the test

(3) and they are in the proper status.

Table 3 - Demographic variables

Correlation analysis between variables

Before the model in terms of

structural equation to be investigated, the

correlation between the variables was

examined. SPSS software and the Pearson

correlation test were used to assess the

intensity of this relationship and type of

relationship between the dependent and

independent variables and to test hypotheses.

There are the results of the correlation

between the endogenous and exogenous

variables of the model In Table 5 that show

the Positive and significant correlation for

them. Respectively the highest and lowest

correlation is between the variable of loyalty

and perceived value (599 /.) and brand

experience and trust (273 /.).

Table 4 - Results of the correlation

variable loyalty Brand experience Perceived value Service quality Trust

Loyalty 1 0.328 0.599 0.347 0.465

Brand experience 1 0.488 0.326 0.273

Perceived value 1 0.364 0.306

service quality 1 0.327

Trust 1

Structural model of (path analysis)

research In this section, we tested the

hypothesis of model with structural analysis.

Structural equation modeling with using

LISREL statistical software was used for the

test the hypothesis. This structural model of




research is shown in Figure 2 in standard mode.

Figure 2. Structural model of research in standard mode

According to Table 7, all indicators of model fitting have desirable condition.

Table 5- current and ideal State of model fitting indexes

Fitting indicator Desirable Status Status model

RMSEA less than 0.08 is Appropriate 0.02

χ2 to df less than 0.03 is Appropriate 1.15

GFI Above 90% 0.94

AGFI Above 90% 0.91

In Table 7, RMSEA and χ2 are both appropriate and low. Therefore, the research model

has a high degree of fitness and reliability.

In Table 7, the path coefficients and significant numbers are considered for each one. This

table shows the direction and intensity of relationships and provides judgments about the

research hypotheses.

In Table 8, all of the studied pathways in the research are positive and significant. In other

words, all the paths showing the effect of exogenous variables on endogenous variables are

positive and significant.

Table 6

Results of test of hypotheses about relations between variables

Relationship Path coefficient T value Test result

Direct influence indirect influence

H1 0.49 0.17 4.42 Confirmed

H2 0.68 - 8.56 Confirmed

H2-1 0.58 - 8.59 Confirmed

H2-2 0.67 - 9.49 Confirmed

H2-3 0.55 - 8 Confirmed

H3 0.25 - 2.31 Confirmed

H3-1 0.29 - 3.89 Confirmed

H3-2 0.20 - 2.55 Confirmed

H3-3 0.28 - 3.96 Confirmed




Conclusions

The main objective of this study was

to analyze the effects of brand experience on

brand loyalty. The domain of consumer

behavior research is based on the

relationship between brand experience and

brand loyalty in customers of City Bank

Branches in Tehran. 400 questionnaires in 5

points of the North, South, West, East and

center of Tehran were distributed. as the

result, 372 cases were investigated for

completeness.

To evaluate the impact of

demographic variables on customer loyalty,

T-test and ANOVA test were used. Test

results indicate that each of the demographic

variables have different effects on the bank's

customer loyalty. At reviews the age of

respondents was determined that People with

an mean age between 20 to 30 years than in

people between the age 30 to 40 and 50 to 60

have less loyalty. In examining the education

level of respondents, There is a difference

between the average of the different

categories of education respondents and

those with a bachelor's degree are loyal than

the other groups. In investigating variable of

benefit from the services of the bank who

has experience for 3 months in the use of

banking services are less loyal than those

who benefit from the services of the bank for

2 years. There is no meaningful difference

between the mean various categories as way

of familiar, performing the rest banking

affairs and occupation of person. By using

confirmatory factor analysis and structural

equation models, the brand experience on

the loyalty and customer satisfaction at the

same two level of model: service quality,

perceived value, trust in the banking

industry's has a positive impact.

Satisfaction also has positive effects

on loyalty. In other words, service quality,

perceived value and trust have a great and

important influence on loyalty. They are the

major elements to retain and attract

customers to the bank. On the other hand,

due to the fact that banks are primarily

service organizations, they are interacting

directly with customers; brand experience of

banks is effective on the customer

satisfaction and loyalty. Also the level of

service that customer receive from banks,

level of value which they want from bank by

experience of brand and the degree of trust

in dealing with the bank has a direct

relationship customer loyalty and generally

customer satisfaction from the banking

services is effective on the level of loyalty.

The results showed that the

relationship between the brand experience

and brand loyalty in the first hypothesis, is

direct and meaningful relationship and

analysis of brand experience positive effects

on brand loyalty. And these findings by

Sahin et al. (2011) and Smith and Zrantlo in

2009 were confirmed. Relationship between

brand experience and satisfactions was

verified and it is positive and significant and

if customers experience a brand and be

satisfied, it will cause loyalty in customers

Sahin et al. (2011). On the other hand,

regarding to the relationship brand

experience as independent variables with

three mediator variable service quality,

perceived value and trust that a direct

relationship was proved and if City bank

brand were experienced by the clients of the

bank in accordance with the service quality

of bank and perceived value is consistent

with their interests, they will trust and

eventually they become loyal customers of

the bank, thus the relationship between

mediator variable with the dependent

variable loyalty was proved.

Suggestions

Selling banking services is the

beginning of a long-term relationship with

the customer. For more loyalty of customers,

city bank executives should pay more

attention to the depth and length of

relationships with customers, and in this

regard, the attention to the psychology of

emotions, affections and customer desires as

well as talent, cognition and thinking it is

very important from the bank. The

strengthening of the two important elements

of the emotion impact and the link between

the bank and the client can lead one of the

bank's priorities so that the customers will




use the Bank's services again. On the other

hand, it is essential for Bank City executives

to make strategic plans, cost less, and

appropriate advertisements to carve City

Bank Brand in the minds of their customers.

To create a sense of satisfaction in customer,

create ATMs, heat and cold appliances,

provide facilities such as telephone services,

Internet and quiet and relaxed, undisturbed

location, and holding in-service training for

employees to build skills, speed and

accuracy will lead to better customer loyalty

to the bank. Implementation of e-banking in

accordance with customers' requirements

and planning in advertising will be caused to

build confidence in the brand-name City

bank. The mutual understanding of the needs

of customers in the undergraduate education

(the highest percentage of clients in the

demographic variables of education) and the

attention to the records of people's benefits

and special privileges from other factors

affecting customer loyalty to the brand of the

City bank. One of the main limitations of

this research is the selection of statistical

samples. The statistical sample of the

research is limited to customers of Bank of

the City of Tehran Branches who have an

active deposit account. They have been

selected for banking services for more than

four years then and other customers of this

bank should be omitted and the

generalization of the results to all customers

of banks should be cautious. The other

important limitation of the research was the

lack of proper and relevant scientific

resources related to the brand experience,

especially in the field of services and

obtaining the necessary information and its

relation with loyalty.

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of marketing, 54(1), 27- 42.

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Mary W., (1993), ―The Antecedents and

Consequences of Customer Satisfaction

for Firms‖, Marketing Science, Vol.12,

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and Manufacturer Firm Working

Partnerships‖, Journal of Marketing,

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Content and Consumer-Brand

Relationships‖, Journal of Public Policy

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Zarantonello Lia. (2009), "Brand

experience: What is it? How is it

measured? Does it Affect Loyalty?"

Journal American marketing

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Martinez Eva. , (2013), "Examining the

role of advertising and sales promotions

in brand equity creating" Elsevier,

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(2006), ―Some Antecedents and

Outcomes of Brand Love,‖ marketing

Letters, vol .17, 79–89.

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(2001),"The chain of effects from brand

trust and brand affect to brand

performance, the role of brand loyalty,

Journal of Marketing, Vol. 65,81-93.

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Research: International Edition (4th ed.),

Singapore: McGraw-Hill.

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An Introduction to Principles, Methods

and Practice, Thousand Oaks, CA: Sage

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Branding in the financial services

market, focusing on the banking

industry, Rasa, Tehran.

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HEALTH AND SAFETY AT MANUFACTURING INDUSTRY

DR. MALLIKARJUNA N.L.

Chairman of Management Department

Akkamahadevi Womens University

Vijayapura

CHITRA

Research Scholar

Management Department Akkamahadevi

Womens University Vijayapura

ABSTRACT

Health and safety issues have always been a major problem and concern in the

manufacturing industry. Wherever reliable records are available, manufacturing is found to

be one of the most dangerous on health and safety criteria, particularly in developing

countries. Efforts have been made to address this problem, but the results have been far from

satisfactory, as manufacturing accidents continue to dominate the overall manufacturing

industry. Despite the programs implemented by government authorities and measures

introduced by companies themselves, the number of construction accidents still remains

alarmingly high.

In developing countries, safety rules usually do not exist; if they do, the regulatory

authority is usually very weak in implementing such rules effectively. India is one of

developing countries that are currently enjoying a strong growth in manufacturing activities.

Unfortunately, some sectors of its manufacturing industry suffer from poor safety and health

conditions. Any framework of the existing occupational and health conditions is fragmented

and inadequately enforced, making manufacturing sites more hazardous. It may even be

argued that relevant regulations are outdated and irrelevant in day-to-day manufacturing

operations. To reach this objective an overview of the published materials as well as the

legislation has been undertaken. In addition, structured interviews were carried out with

selected managers from a selection of manufacturing, medium and large size. This thesis

specifically, it investigates the safety perceptions, attitudes, and behaviour of construction

workers and management safety practices. Based upon the analysis of the results, this study

has demonstrated that the majority of those questioned Indian manufacturing companies

have a poor degree of risk awareness and do not seems to take health and safety as an

important issue.

Key words: Health and safety, OHSAS

Introduction

In India the manufacturing industries

play a major role in economic development

of the country providing more employability

to the younger generation to become

financially independent to their daily

livelihood. Industries comply with

international health and safety standards in

their manufacturing process to prevent any

industrial risk/accidents. Such as working

environment, Cleanliness, temperature,

drinking water, lightening, building safety,

fire safety, electrical safety, chemical safety.

All the manufacturing industries should

maintain BS, OHSAS (Occupational Health

and Safety Assessment Series) 18001/2007.

It has Occupational health and safety

management system.

An effective safety and health

management system is the key to reducing

the number and severity of workplace

injuries and illnesses, resulting in lower

accident-related costs. In this course, you

will learn to effectively implement a

company‘s safety and health management

system and the four core elements of an

effective safety and health system and the

central issues critical to each element‘s

proper management.

Literature Review

According to National Safety

Council (NSC as cited in Mitropoulos,

Abdellamid And Howell, 2005,p.817) a




hazard is ―an unsafe condition or activity

that, if left uncontrolled can contribute to an

accident‖.

Potential hazards are identified based

on the knowledge of operations and past

experience with similar work tasks.

According to Abdelhamid and Everest

(2000), occupational accidents occur due to

one or more of the following causes:-

1.failing to identify an unsafe condition that

existed before an activity was

started.2.Deciding to proceed with a work

activity after the worker identifies an

existing unsafe condition or 3.Deciding to

act unsafe regardless of initial conditions of

the work environment. According to Wilson

(1989), workers are usually exposed to risk

either because of their lack of knowledge

about workplace hazards due to limited

experience and knowledge or failure to

behave safely, which may be associated with

the workers attitude toward safety

(Abdelhamid & Everett, 2000) or the

underestimation of perceived risk (Bailey,

1997; Choudhry & Fang, 2008). According

to Conor CO Reynolds; M Anne Harris;

Peter A Cripton; Meghan Winters (2009),

Bicycling has the potential to improve

fitness. Understanding ways of making

bicycling safer is important to improving

population health. We reviewed studies of

the impact of transportation infrastructure on

bicyclist safety. To assess safety, studies

examining the following outcomes were

included: injuries; injury severity; and

crashes. Results to date suggest that

sidewalks and multi-use trails pose the

highest risk, major roads are more hazardous

than minor roads, and the presence of

bicycle facilities (e.g. on-road bike routes,

on-road marked bike lanes, and off-road bike

paths) was associated with the lowest risk.

Street lighting, paved surfaces, and low-

angled grades are additional factors that

appear to improve cyclist safety.

Objectives

1. To evaluate Health and safety policy and

procedures with International Standards,

analyze the variance of health and safety

standards

2. To identify best practices of Health and

safety management system.

3. To find out the percentage of risk and

accidents in the industries.

4. Improve the Safety of

equipment/activities, with a special

emphasis on lifelines.

5. Achieve higher productivity among the

employees by providing a safe and

secure environment

6. Focus on employees‘ safety and health

arising from chemicals and hazardous

elements used at workplaces.

The Main functions of the Health and

Safety Team are:-

1. Internal liaison with Managers

responsible for health and safety related

functions

2. Responsible for developing and putting

into effect an Industry health and safety

policy.

3. Formulate and promote relevant

standards and supporting guidance to

comply with health and safety

legislation.

4. Sets targets to improve health and safety

and benchmark the Industry performance

against others in the sector.

5. Monitor health and safety management

and performance of the Industry and its

constituent parts.

6. Investigate accidents and dangerous

occurrences, as appropriate.

7. Liaise with health and safety

enforcement authorities (HSE, Local

Authority and Fire and Rescue Service).

8. Liaise with Trade Unions on health and

safety matters.

9. Promote and provide health and safety

training.

10. Monitor reports of accidents and

incidents to identify issues and solutions.

Scope

Health and safety management

system is a process put in place by an

employer to minimize the risk and injuries,

illness. Health and Safety management have

a wide scope to implement international

standards in Indian manufacturing

companies. Recent past very few researches




had been conducted and focused in this

system to update health and safety standards

to eliminate or reduce the risk in good

working environment. Workers should know

about their rights in procuring a worker

friendly environment that provides them

hazard free life, healthy life styles and safe

atmosphere. Workers should be aware of

their responsibilities and duties towards the

utilization of the ergonomic facilities

provided to them. This ensures a clean and

safe work environment enabling

occupational safety.

Significance

Health and Safety management

system is a planned process or procedures to

carry out a certain activities in work place. It

is the held responsibility of the management

and state government (Factory inspectors,

Labor officers and welfare officers). They

used to ensure that every Health and Safety

standards and precautions as to taken to

reduce accidents and risk in work

place.Having this concept its more

significant to adopt BS 18001 and 2007,

OHSAS(Occupational Health and Safety

Assessment Series) Standards. The

importance of the research stems from the

need to develop an understanding and

investigate the problem of health and safety

in manufacturing Industry and make a

contribution to knowledge in this area where

a very little information exists. Addressing

health and safety issues should not be seen

as a regulatory burden as it offers significant

opportunities and benefits to the

manufacturing industry.

Limitation

The study is limited to

Manufacturing industry .Data on work place

safety and health provide information on the

well being of workers beyond whether or not

a person has work. They are also useful for

planning preventive measure.

Conclusion

Occupational Safety and Health

(OSH) is a cross-disciplinary area concerned

with protecting the safety, health and welfare

of people engaged in work or employment.

The goal of occupational safety and health

programmes is to foster a safe and healthy

work environment.

This study assessed the effectiveness

of OHSMSs in improving OHSAS

conditions. The results revealed that the

safety performance of OHSAS 18001-

certified companies is better than that of

noncertified companies. Therefore, it can be

concluded that OHSMSs improve OHS

conditions and support healthy and safe

workplaces. However, establishing and

implementing an OHSMS is only the first

step in the structured management of health

and safety systems in the working

environment. To consolidate their role, and

increase their acceptance by employees and

other beneficiaries, their performance must

be assessed using appropriate indicators.

References

1. www.occupationalhealthandsafety.com

2. Journal : www.e-shaw.org

3. Kahn, W.A. (1990). Psychological

conditions of personal engagement and

disengagement at work. Academy of

Management Journal.

http://www.occupationalhealthandsafety.com/

http://www.e-shaw.org/




A CRITICAL STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS

INSTANT FOOD PRODUCTS WITH SPECIAL

REFERENCE TO BHAGALPUR CITY

PRIYADARSHI ASHOK

Ph.D. Research Scholar,

University Department of Commerce &

Business Administration,

Tilka Manjhi Bhagalpur University, Bihar.

PRITI CHIRANIA

Ph.D. Research Scholar,

University Department of Commerce &

Business Administration,

Tilka Manjhi Bhagalpur University, Bihar.

ABSTRACT

With globalization and modernization, the cutting edge aggressive business depends

on understanding the best items and administrations that he needs. Considering reality that

the buyer is the ruler, understanding the conduct of the buyers is an extraordinary test.

Today, moment nourishment items possess an honest to goodness rack space in stores

and general stores in India. New and high calibre of moment nourishment items have

changed the way of life of individuals and prompted more number of Indian organizations

enter the market with assortments of moment food items . Moment food items influence them

to cook whenever with less to work, time and vitality so as to determine a specialty mastery of

inferred discoveries, the examination was confined to just marked prepared to eat and

prepared to cook nourishment items and to Consumers who knew about these nourishment

items. The data of 110 respondents has been taken from Bhagalpur city, Bihar. The

investigation uncovers that lion's share of the respondents have arranged choice in obtaining

moment nourishment items. TV assumes a noteworthy part in giving data about moment food

items.

KEYWORDS - Globalization, Modernization, General stores, Indian organizations, Food

Items, Consumers.

INTRODUCTION

The word 'food' alludes to the

concoction substances devoured by people

to keep their body in a sound and dynamic

condition. The human body requires

nourishment for development, repair and

substitution of its well-used out tissues.

Thus, food needs to give the required crude

material, vitality and different substances,

similar to vitamins and for the smooth

working of the body, other than meeting the

calorific necessities like starches, proteins,

fats, and so forth., India is the world's

second biggest maker of nourishment

alongside China and regarded to be

capability of being greatest industry with

food and rural division contributing 32 for

each penny to Indian GDP.

Today, in our kitchen has imperative

place by moment nourishment items. It

involve a true blue rack space in stores and

markets in India. New and high caliber of

moment food items have changed the way

of life of individuals and prompted more

number of Indian organizations enter the

market with verities of moment

nourishment items . Moment nourishment

items spare time and vitality. Guardians can

send the kids to class to class early, go to

office in time and get more opportunity to

include in different exercises. Urban current

ladies try to engage themselves in the

general public as they have advanced

education , better business openings and

great presentation condition that expansion

the requirements at a quicker rate . Moment

food items influence them to cook

whenever with less to work, time and

vitality.

In India, dominant part of

nourishment utilization is still at home.

Hand crafted nourishment items get

uncommon consideration from clients. By

and by, out of home food utilization is




expanding because of increment in

urbanization, separating of the conventional

joint family framework, want for quality,

time which converts into an expanded

requirement for comfort, expanding number

of working ladies, ascend in per capita

wage, changing ways of life and expanding

level of riches in the center pay amass had

achieved changes in nourishment

propensities.

INDIAN FOOD PROCESSING

INDUSTRY

The nourishment handling industry

in India is one of the biggest as far as

creation, utilization, fare and development

prospects. Imperative sub divisions in

nourishment preparing enterprises are

products of the soil handling, angle

preparing, drain preparing, meat and

poultry handling, bundled/accommodation

food, mixed refreshments and soda pops

and grain preparing.

As indicated by Ministry of Food

Processing Industries, the measure of the

food handling industry was about

Rs.315,000 crores and included Rs.99,000

crore of significant worth included items.

Around 300 million upper and white collar

class individuals expend handled

nourishment; 200 million more customers

are required to move to prepared food by

2010. The nourishment preparing industry

represents 13.5% of the nation's modern

yield. It creates 18% of GDP and utilizes

around 19% of the mechanical work at

national level. Items like papad, pickle and

flavor blends have been colossally fruitful

lately. The span of this specific section

alone is assessed at Rs 100 Crores. Rabo

India Finance had anticipated that the

Indian nourishment preparing industry

would increment to Rs 11,500 billion by

2014-15. Prepared items like 'chapaties',

'subzies' and parcel packs of concentrated

curries are quick getting to be noticeably

consistent weight control plans, particularly

for youthful couples. The item run

incorporates nourishments like 'puri-bhaji'

and 'dosa-vada'. Handled nourishment items

like pickles, chutneys, squeezes and curry

powders had made their entrance into the

kitchens of most middleclass family units

quite a while back. There are an astounding

15 crore white collar class people, of which

60% are underneath 35 years — a section

that is progressively relying upon prepared

nourishments. This tosses open a perfect

open door for little business visionaries who

are looking at this fragment for making a

fortune.

In the course of recent decades,

India has made mammoth strides in

delivering nourishment grains, drain,

products of the soil. The generation of

crude food materials is assessed to worth

over Rs. 60,000 crore. After essential,

optional and tertiary handling, the aggregate

size of the business is evaluated to be as

high as Rs. 1,10,000 crore. This cost

overwhelm mirrors the open doors that food

handling industry offers to the economy in

general and business people in person.

Items centered towards kids and youthful

grown-ups and items obliging the

individuals who lead a quick advanced life.

Understanding the otential and keeping in

mind the end goal to give additionally help,

the administration has exempted from

extract obligation for consolidated drain,

dessert, arrangements of meat, fish and

poultry, pectins, pasta and yeast. Further,

extract obligation on certain prepared to-eat

bundled nourishments is decreased to 8%

from 16%.

The aggregate fares of Indian

nourishment handling industry had

expanded by around three times to

Rs.53,000 crores in 2003-04, from Rs.17,

600 crores in 2002-03. Considering the

more noteworthy potential for food

preparing industry in India, government had

resolved to empower different exercises for

the improvement of this segment. Indian

government had been offering significance

to the food preparing segment, by method

for monetary impetuses to energize

commercialization and esteem expansion of

farming produce, for limiting pre/post reap

wastage, creating business and fare

development. The legislature gave five-year




charge occasion for new food preparing

units in foods grown from the ground

handling. From 2000-01 to 2006-07

Government had additionally affirmed

recommendations for joint endeavors;

outside coordinated effort, modern licenses

and 100 % send out arranged units

conceiving a venture of Rs.19,100 crores

amid 2012-13. Out of this, remote

speculation was over Rs. 9100 crores.

REVIEW OF LITERATURE

Kamalareni and nirmala (1996),

in their study have portrayed that most of

the instant food products. Most of the

consumers regularly purchase at least three

varieties of food items and they suggest that

the door to door distribution of free sample

is used as a main tool of sales promotion by

the instant food product manufactures.

Kotler and Armstrong (1997),

concluded the consumer purchasing

decisions take place over a period of time.

The overall goal during this decision

process is to evaluate various alternatives

and choose product that satisfies the

consumer in an optimal way.

Consumers get influenced by

several major factors while they make their

decisions. These factors can be grouped as

social, cultural, psychological and personal

factors Schiffman and Kanuk (2000),

defined, following are the main sources of

that influence on Attitude formation. The

formation of consumer attitudes is strongly

influenced by personal experience, the

influence family members and friends,

direct marketing, and mass media. Direct

experience refers the attitudes towards the

product formed by the directly consuming

the product.

Blackett and Robbins (2001),

consistently said that the key drivers of

demand for products are

awareness/familiarity, perceived quality,

sales quality and price. These tool drivers

influence the perception of costumer in

term of decision making.

Svederberg, Eva (2001), revealed

in their study that consumer‗s choice of

food products is based on environmental

issues as well as on issues concerning their

health. Their thinking on nutrition and

health is based on whether the food product

was produced locally or not and on the list

of ingredients. The study also found that

consumer‗s understanding of packed food

label information is low.

Pinya Silayoi, Mark Speece

(2004), conducted an exploratory study on

packaging and purchase decisions and

found visual package elements play a major

role, representing the product for many

consumers, especially in low involvement

and when they are rushed. Most focus

group participants say that they use label

information but they would like it if it is

simplified.

Vasant P Gandhi and Abraham

Koshy (2006), conducted a study to

examine the marketing of wheat in India,

focusing on the private marketing system,

the marketing efficiency and quality. The

study finds that the farmers now almost

invariably sell in the nearby primary market

rather than to village traders, indicating

increasing awareness and mobility. The

study finds that typically, the market

intermediaries provide hardly any special or

value adding services or development, in

return for the commissions and margins,

other than conducting the transactions and

making the payment. The farmers see

considerable scope for improvement in the

marketing system. However, the

commission agent and traders seem

relatively satisfied.

Banumathy and Hemameena, M

(2006), discussed in their study on brand

preference of soft drinks in rural Tamil

Nadu that using Garrets ranking technique,

to rank factors influencing the soft drinks

preferred by rural consumer. They found

that, the product quality was ranked as first,

followed by retail price. Good quality and

availability were the main factors, which

influenced the rural consumers of a

particular brand of a product.

Indumathi et al (2007), in their

study have revealed that occupation of the

women, income of the family and saving




time while cooking are the most influencing

factors of spicy products. The authors say

that most of the consumers have purchase

200 gm pack of powders and masala, while

small numbers of consumers prefer 100 gm

packets.

Pinya silayoi and Mark Speece

(2007), conducted a study on the

importance of packaging design and the

role of packaging as a vehicle for consumer

communication and branding. The study

investigated the knowledge about consumer

psychology which was important for the

manufacturers to understand consumer

response to their packages. The results of

the study gave some insights of consumer

preferences for food packages in Bangkok

and Thailand, which are fair representatives

of many markets in Asia, Where the

modern urban middle class is rapidly

expanding.

Sushil Kumar and Jabir Ali

(2011), conducted a study for assessing

consumer awareness and usage of food

labels and influences on food buying

behaviour. The results indicated that

particular category of information was used

more by the consumers while purchasing

packaged food products. Differences across

various socio-economic groups were also

significant in many cases. The results had

very strong implications for regulatory

authorities as well as food companies.

Saritha Bahl (2012), has develop a

model to understand the determinants of

consumer behaviour regarding buying

decision. The frequency of consumer‘s

shopping for food products has been

analysed among different occupations.

Efforts have been taken to know the attitude

of the consumers towards food product

labels and their perception about food

safety which has also analysed

STATEMENT OF THE PROBLEM

With advancement, privatization,

globalization and modernization, the cutting

edge aggressive business depends on

understanding the best items and

administrations that he needs. Considering

reality that the purchaser is the lord, each

association needs to build piece of the pie

and benefit. The contenders are likewise

following a similar methodology. It

includes the mental procedures that

customers got past in perceiving needs,

discovering approaches to settle these

requirements, settling on buy choices,

translate data, make arrangements and

execute those plans by taking part in

examination shopping or really acquiring an

item. Buyer conduct is one of the

empowering and testing regions in

advertising examines being a human

movement concentrated on the items and

administrations. Understanding the conduct

of the buyers is an extraordinary test.

OBJECTIVES OF THE STUDY:-

The main objectives of the present

study are mentioned below:-

Main Objectives

1. The study is to identify the customer

purchasing behaviour towards instant

foods.

Secondary Objective

1. To analyse the consumer purchasing

frequency of instant food products.

2. To know the media for selecting the

instant food products.

3. To find out the influencing factors on

instant food products.

4. To study the pattern of purchase of

consumer towards instant food

products.

METHODOLOGY

The research methodology is a way

to systematically solve the research

problem along with the logic behind

them. The various aspects of methodology

adapted in the present study are discussed

below.

The study was conducted in

Bhagalpur city in between 15th August to

15th

November, 2016. 110 respondents from

both genders were randomly selected as the

sample for the study. Retail outlets were

visited in morning, afternoon to ensure

better coverage of all types of consumers.

Convenience sampling technique was used

to collect the data. The survey tool for this

study was a structured survey questionnaire




method through face-to-face interview by

the investigator.

Along with primary data secondary

data has been also used for the study which

has been collected from various journals

and online sources.

TYPES OF BUYING BEHAVIOR:

Consumer decision making varies

with the type of buying decision. Assail

distinguished four types of consumer

buying behaviour based on the degree of

buyer involvement and the degree of

differences among brand

DESCRIPTION HIGH

INVOLVEMENT

LOW

INVOLVEMENT

Significant

differences

Between

brands

Complex

buying

behaviour

Variety

seeking

buying

behaviour

RESEARCH FINDINGS

On the basis of primary data collected

through structured questionnaire the

following analysis has been done.

Table 6.1: Profile of respondents

Source: Primary data (n=110)




Interpretation:-

Table 6.1 depicts the personal

profile of the respondents who fall under

different category of age groups,

educational qualification, occupation,

marital status, number of family members,

type of family and family monthly income.

Table 6.2: Duration of usage of instant packaged food products


Interpretation:-

Table 6.2 portrays the duration of

usage of Instant Packaged food products.

With regard to ready to eat food products,

51.82 per cent of them were consuming

instant packaged food products for 5 - 10

years, 30.91 per cent had been using of

them it for less than 5 years, 10.91 per cent

of them had been using it for 10 to 15 years

and 6.36 per cent of them were using it for

more than 15 years. With regard to ready to

cook food products, 28.18 per cent of them

were consuming it for less than 5 years,

39.10 per cent of them had been using it for

5 - 10 years, 22.72 per cent of them had

been using it for 10 - 15 years and 10 per

cent of them were using it for more than 15

years

Table 6.3: Respondent’s Purchase decision


Interpretation:-

Table 6.3 states the purchase

decision of the respondents. With regard to

ready to eat food products, 43.64 per cent of

them had planned purchase, 30.91 per cent

of them followed impulsive buying and

25.45 per cent of them decided their

purchase based on the situation/ force. With

regard to ready to cook food products,

56.36 per cent of them had planned

purchase, 31.82 per cent of them followed

impulsive buying and 11.82 per cent of

them decide their purchase according to

situation/ force.

Table 6.4: Frequency of purchase


Interpretation:-

Table 6.4 outlines the respondent‘s

frequency of purchase of the ready to eat or

cook food products. From the table it is

clearly shown that 31.81 per cent of them

purchase the ready to eat food products

once in a week, 21.81 per cent of the

respondents purchase the ready to eat food

products twice in a week, 14.54 per cent of

the respondents purchase ready to eat foot

products every day, 12.72 per cent of them

purchase the ready to eat food products




once in a month, 9.09 per cent of the

respondents purchase ready to eat food

products for fortnightly and 10.03 per cent

of them purchase the ready to eat food

products whenever required. 33.64 per cent

of the respondents purchase the ready to

cook food products once in a week, 20.91

per cent of the respondents purchase the

ready to cook food products fortnightly,

16.36 per cent of them purchase the ready

to cook food products twice in a week,

11.82 per cent of them purchase the ready

to cook food products daily, 10.91 per cent

of them purchase the ready to cook food

products once in a month and 6.36 per cent

of them purchase the ready to cook food

products whenever required.

Table 6.5: Source of influence


Interpretation:-

Table 6.5 describes about the source

of influence for using packaged instant food

products. With regard to ready to eat food

products, 29.09 per cent of the respondents

are influenced to use ready to eat food

products through their children, 24.55 per

cent of them are influenced to use ready to

eat food products through their parents,

17.27 per cent are influenced to use ready

to eat food products through their spouse,

13.64 per cent of the respondents are

influenced to use ready to eat food products

through their friends, 10.9 per cent of the

respondents are self-influenced to use ready

to eat food products, and 4.55 per cent of

them are influenced to use ready to eat food

products through shop keeper.

With regard to ready to cook food

products, 26.36 per cent of the respondents

are self-influenced to use ready to cook

food products, 22.9 per cent of them are

influenced by their parents,18.18 per cent

are influenced to use ready to cook food

products through their friends, 15.45 per

cent of the respondents are influenced

through their children, 12.72 per cent of

them are influenced to use ready to cook

food products through shop keepers and 6.4

per cent of the respondents are influenced

by their spouse to use ready to cook food

products.

Table 6.6: Source of information


Interpretation:-

Table 6.6 describes about the source

of information regarding ready to eat foot

and ready to cook food products. With

regard to ready to eat food products, it was

found that 70.9 per cent of the respondents

were getting information about the products

through television, 14.54 per cent of the

respondents through radio and 7.27 per cent

of the respondents through newspapers.

Friends/relatives, magazines and

shopkeepers served as the source of

information about the ready to eat food

products for 6.4 per cent, 5.45 per cent and




4.54 per cent of respondents, respectively.

With regard to ready to cook food products,

it was found that 52.73 per cent of the

respondents were getting information about

the ready to cook food products through

television, 15.46 per cent through friends

and relatives, and 13.64 per cent through

the newspaper. Percentage of the

respondents getting information about the

ready to cook food products through radio

and shopkeepers were the same that is 6.36

per cent and magazines acted as source of

information about ready to cook food

products for 5.45 per cent of respondents.

CONCLUSION

The investigation comes about

uncovered an inspirational viewpoint

towards the moment or Ready to eat food

items and Ready to cook nourishment items

and the request has additionally expanded.

The members had broad consciousness of

the item, and appropriate data wellsprings

of the item. The recurrence of devouring

prepared to eat or prepared to cook handled

food has been ascending with relative

significance of comfort, efficient and a

relative decrease in conventional

nourishment and dietary patterns. This

pattern was more noticeable in youthful

purchasers. Theinvestigation uncovered that

dominant part of the respondents had

arranged choice in buying moment food

items. TV assumed a noteworthy part in

giving data about moment food items.

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M-BANKING: ISSUES AND CHALLENGES IN INDIAN BANKING SECTOR

DR. PAWAN KUMAR PODDAR

Head, University Department of Commerce

& Business Administration &Director,

Directorate of Professional Courses

Tilkha Manjhi Bhagalpur University,

Bhagalpur, Bihar-812007, India

DR. QUAZI MD. KAMRAN

Department of Commerce & Business

Administration,Tilkha Manjhi Bhagalpur

University, Bhagalpur,

Bihar-812007, India

Abstract Banking is the backbone of every industry and technology plays an important role in

every industry. The role of technology is increasing very rapidly day by day, which is also

promoting the banking industry. Mobile banking is a system that helps the customers to

conduct a number of financial transactions with the help of their mobile devices. The

increased prevalence of mobile phones provides exciting opportunities for the growth of

mobile banking (m-banking). Like in any emerging technology, there exist barriers to the

adoption of mobile banking services.

As India is the second largest telecom market in the world and have high potential for

expanding banking services using mobile. Mobile banking has emerged as more convenient

and user friendly form of banking. In this paper, we will share what is mobile banking (m-

banking), advantages of adopting this new technology both for the banking sector as well as

the consumer and issues which needs to be addressed relating to this new form of banking.

This paper looks at various factors which explain why consumers are not using mobile

banking and other technologies in banking. It would also try to suggest why people are not

currently using mobile banking and try to suggest how to overcome this problem and

increase the acceptance levels.

Keywords: Technology, Mobile banking User friendly, Customers, Revolution

INTRODUCTION

Traditional branch-based banking in

India remains the most widely adopted

method of conducting banking transaction,

at same time commercial banks are

undergoing a rapid change majorly driven

by the information & telecommunication

(ITC) technology. ICICI bank pioneered in

mobile banking services in India.

Today many commercial banks have

launched mobile banking reaching out to

customers and providing them with not only

general information about its services but

also the opportunity of performing

interactive retail banking transactions

anytime, anywhere. Banks have changed

from paper-based banking solutions provider

to the latest of the technologies like online-

banking, mobile-banking, etc. At present

banks offers a wide range of services to their

customers such as doing fund transfers,

purchasing stocks, access to account

information etc.

Concept of Mobile Banking

Mobile banking started in 1998 in

Finland where a mobile phone was used for

coco cola and for car parking fee. In Finland

payments and account management products

over mobile GSM phones as SMS service

was available more than a decade ago.

Mobile banking allows you to bank

anytime anywhere through your mobile

phone. You can access your banking

information and make transactions on your

Savings Account, Demat Accounts, Loan

Accounts and Credit Cards at absolutely no

cost. With the new M-Shop facility on

Mobile, you will now be able to recharge

your mobile phone and book movie tickets.

In their simplest form, customers receive

information on their account balances via

SMS. The new WAP- and Java-enabled

mobile phones using GPRS support fund




transfers between accounts, stock trading,

and confirmation of direct payments via the

phone‘s micro browser.

Rapid increase in the use of mobile

phones has created new opportunities for

banks to use this mode of communication

for banking transactions. Mobile banking

helps in financial inclusion as it‘s difficult to

set up branches in rural and remote areas.

Advantages of Mobile Banking

Mobile banking offers various

advantages to banks as well as customers

Benefits for the banks 1. Reduces transaction cost: Mobile

banking enables banks to reduce cost of

courier, communication, paper works,

etc. It reduces costs in setting up a

branch and the resources to process

transactions.

2. Helps in improving services: as there is a

direct contact between customers and

banks, banks can improve their services

on the basis of customers feedback.

3. Increases customer loyalty: using M-

banking customers need not to go in

banks braches for fund transfer or for

information, which creates a good

relationship between banks and

customers which helps in increasing

loyalty towards the banks.

Benefits for the customers 1. 24x7 hour banking: through mobile

banking, customers has online access to

their bank accounts. Challenges related

to mobile Banking. Customers has no

longer to wait in banks lines of wait for

opening branches

2. Anytime anywhere banking: unlike

traditional banking, consumers can

perform banking transactions at

anyplace.

3. Safe and secure transaction: mobile

banking reduces the risk of fraud. An

SMS is send by bank whenever customer

withdraws money from his/her bank

account. It has secured pin code which is

known by the user, and also has a check

digit without it no one can deposit

money.

REVIEW OF LITERATURE

Barnes and Corbett; Scornavacca and

Barnes (2004) concluded that mobile

banking is a result of recent innovations in

telecommunications that launched new

methods for banking services.

Rugimbana (1995) found that there is vast

potential for mobile banking because of its

anywhere and anytime accessibility.

Clark (2008) suggests that as a Channel the

mobile phone gives consumers more low-

cost self-service options to access funds,

banking information and make payments. It

also delivers convenience, immediacy and

choice to consumers.

Consumers are attracted to these

technologies because of convenience,

increasing ease of use, and in some instances

cost savings (Anguelov et al., 2004).

Bamoriya and Singh (2011) found that the

mobile banking face challenges like mobile

handset compatibility, standardizing,

software downloading, privacy & security.

From Indian perspective Sharma and Singh

(2009) found that Indian mobile banking

users are specially concerned about security

issues like financial frauds, account misuse

and user friendliness.

Comninos et al. (2008) suggested that

consumers will transact electronically if

there is convenience and security in mobile

banking.

Mobile banking has emerged as new

alternative way of banking which is more

convenient and user-friendly than traditional

form of banking. It is covering the concept

of anytime, anywhere banking into reality

(Kaur & Madan, 2013).

Mobile banking is one of the alternative

channels available to customer for quick and

efficient service or anytime and anywhere. It

also studies the various incentives and gain

by the customers with the usage of mobile

banking (Mishra & Sahoo, 2013).

OBJECTIVES OF THE STUDY 1. To understand the concept of mobile

banking.

2. To study the benefits of mobile banking

3. To study the issues related to mobile

banking in India.




4. To highlight the challenges associated

with mobile banking.

5. To make suggestions on the basis of

research findings

METHODOLOGY The study was conducted to identify

the issues and challenges of mobile banking

and to make suggestions on the basis of

findings of the study. The methodological

approach in this study is exploratory in

nature. Secondary data was used for the

study. Secondary data provided theoretical

background to the research problem.

Secondary sources include journal, books,

internet etc. For the present research, the

paper is based on Exploratory Research. The

major emphasis of Exploratory Research is

on the discovery of ideas.

ANALYSIS

Issues

This papers attempt to explore

various mobile banking issues from users‘

perspective and to alert various parties

involve in mobile banking services viz.

mobile operators, banks, content providers,

aggregators etc. about relevant issues which

could become challenges for them in

providing effective mobile banking services.

Security issues in mobile banking

Mobile banking has two zones, one

is the handset held by the user and the other

is the bank zone. Literature shows that

possibility of security threat exists for

transaction of payment using mobile device.

i) Mobile banking and Security issues

with WAP (Wireless Application

Protocol)

It was noted that it is difficult to

provide end to end security through WAP.

The reason is that the data is not encrypted

at gateway during the switching of protocol

process, which leads to security concern for

mobile banking in WAP.

ii) Authentication Risks and Issues

If the device gets stolen then the

hackers or unauthorized persons may find

the password from the log files or saved

draft files. Many customers save their

password in their mobile or they may keep

the password under auto fill settings of the

form, this loophole can be easily used by the

unauthorized person.

iii) SMS based Mobile banking Today, most of the banks in the

world offer SMS based mobile banking. Due

to plain text property, SMS is not suitable

for authentication. So lacking of privacy,

integrity and security are the main issues

involve in SMS banking.

a) SMS encryption

As default data format for SMS is

plaintext. Currently end to end encryption is

not available. The only encryption involved

at base transceiver station and SMS bank

server during transmission. The encryption

algorithm used is A5 which is proven to be

defenseless.

b) SMS Spoofing Attack

The most dangerous attack in SMS

banking is spoofing attack where attacker

can send messages on network by

manipulating sender‘s number. Due to

spoofing attack, most of the organizations

are not adopting mobile banking through

SMS.

iv) Virus Attacks in mobile banking

Software like Trojan horses can

easily take up password on the web browser

or any cached information on operating

system. Malicious codes are written for

remote communication. Zitmo has been used

by attackers to defect SMS banking. Zeus is

commonly used to steal mobile transaction

authentication number or password.

v) Risk with Digital Signature

To reduce hardware cost, designer

may prefer digital signature. It is founded

that digital signature is computational

intensive. With unsigned values for example

date, amount, they differed from transaction

to transaction. So a signed template can be

used with several unsigned values like date,

amount etc.

Challenges

Economic Challenges: India does possess

some infrastructure in the forms of postal

payments, reasonable transport and local

governments and therefore, it is a big

challenge for bankers to make mobile




banking inexpensive enough to be attractive

for the end-customer over existing methods.

Regulatory Challenges: Although the RBI

is supportive of mobile banking in India,

there are many regulations that are being put

into place:

i) Restricted to Financial Institutions: The

guidelines state that only existing financial

institutions and banks are allowed to offer

mobile banking. For a very inexpensive

solution, it would have been more effective

to allow non-profit organizations to build

their own MFI without being encumbered by

large existing infrastructure.

ii) Rupee Transactions: All transactions

must be done only in India‘s national

currency, the rupee. While this may not be a

threat in the beginning, this may pose a

constraint for interoperability between

Indian mobile payments and the world.

Also, it excludes providers from the

lucrative remittance market in India and

limits areas from which mobile operators

can be profitable.

iii) Existing Account Holders: The

guidelines also state that only those having a

valid bank account would be allowed mobile

banking. This limits the full potential of

mobile banking to extend micro-credit and

bring banking to the large number of

unbanked customers in India.

Demographic Challenges: India has 18

official languages which are spoken across

the country. The state governments also are

dictated to correspond in their regional

language for official purposes. For a pan-

Indian mobile banking solution, this will be

cumbersome to overcome.

CONCLUSION

Due to smart phones, huge increment is seen

in the banking sector which is offering

customized based applications. As, a result

mobile phones have immense potential of

conducting financial transactions thus

leading the financial growth with lot of

convenience and much reduced cost. There

is also need to generate awareness about the

mobile banking so that more and more

people use it for their benefit.

The major challenge here is to develop

applications which are safe in all respect so

that majority of the consumer use it without

any kind of hesitation. Majority of the

Indian population is still living in rural areas

and therefore immense potential lies before

the banker which is untapped till date. So it

is of utmost importance to make software

that is user friendly and standardization will

make it easier for customer using services of

multiple banks.

The researcher had attempted to explore

selected mobile banking issues from

customers‘ perspective and to make

recommendation to various parties like

banks, mobile operators, content providers,

regulators on relevant issues which could

become challenges for them in providing

effective mobile banking services in the

country.

REFERENCES:-

1. Al-Ashban, A.A. an d Burney, M.A.

Customer adoption of tele-banking

technology: the case of Saudi Arabia,

International Journal of Bank Marketing,

19 (5), pp. 191-200,2001.

2. Amir Herzberg. Payments And Banking

With Mobile Personal Devices,

Communications of the ACM,Vol. 46,

No. 5, May 2003.

3. Banzal S. Mobile Banking & M–

Commerce and Related issues, www.

public.webfoundation.org/….... /25,

Mobile_banking_M-

commerce_15.03.pdf, 2010.

4. Barnes,S.J., and Corbitt, B. Mobile

Banking: Concept and Potential,

International Journal of

MobileCommunications, 1 (3), pp. 273-

288, 2003.

5. Black, N. J., Lockett, A., Ennew, C.,

Winklhofer, H. and McKechnie, S.

Modeling consumer choiceof

distribution channels: An illustration

from financial services, International

Journal of Bank Marketing, 20(4),

pp.161- 173, 2002.

6. C. Narendiran, S. Albert Rabara, and N.

Rajendran. Public key infrastructure for




mobile bankingsecurity, Global Mobile

Congress 2009, pp. 1-6,2009.

7. C. Narendiran, S. Rabara, and N.

Rajendran, ―Performance evaluation on

end-to-end security architecture for

mobile banking system, ‖ Wireless Days,

2008. WD '08. 1st IFIP, pp. 1-5,2008.

8. Comninos, A., Esselaar, S., Ndiwalana,

A. and Stork, C. Towards evidence-

based ICT policy andregulation mobile

banking the unbanked,

http://externo.casafrica.es/aeo/pdf/englis

h /overview_part_2_09_aeo_09.pdf ,

2008.

9. Dai Wei and Tang Yanling. Research on

Security Payment Technology Based on

Mobile Mobile E- Commerce, e-

Business and Information

SystemSecurity (EBISS), pp.1- 4,2010.

10. Gopal, Pandey, Batra (2012). Mobile

Banking in India: Practices,Challenges

and Security Issues. International

Journal of Advanced Trends in

Computer Science and Engineering.

Volume 1, No.2, May – June 2012.

11. Mishra, Sahoo. (2013). Mobile banking

adoption and benefits towards customers

service, Special Issue of International

Journal on Advanced Computer Theory

and Engineering, 2319 – 2526, Volume-

2, Issue-1, 2013.




ANALYTICAL STUDY OF FRUITS & VEGETABLES MARKETING IN PUNE

DISTRICT

NILESH U BANKAR

Research Scholar

Ahmednagar, Maharashtra

DR.J.R.BHOR

Research Guide,

Ahmednagar, Maharashtra

Abstract

Fruits & Vegetables play an important part in having healthy life style. Fruits &

Vegetables in proper balance prevent many diseases. Marketing of fruits & vegetables is

more important as fruits and vegetables are perishable, seasonal and available in bulk. It is

tough job to store the fruits and vegetables easily. Hence its proper marketing needs to be

done. In India fruits & a vegetable marketing is mostly done in weekly bazaars. Majority of

Indian population is based on agriculture as occupation the market of fruits & vegetable is in

large scale. APMC operated taluka wise play an important role in marketing of fruits &

vegetables .There has been concern in the recent years regarding the efficiency of marketing

of fruits and vegetables in India. It is believed that poor efficiency in the marketing channels

and Poor marketing infrastructure is leading to high and fluctuating consumer prices. The

present paper is an attempt to elaborate fruits & vegetables marketing in Pune district.

Keywords: Marketing Efficiency, Marketing, Fruits, Vegetables, Consumer price etc.

Introduction:

India ranks second in the world in the

production of Vegetables and third in

production of fruits. Fruits and vegetable has

gained more importance. Fruits &

Vegetables farming is mostly labour

intensive in India and provide substantial

employment not only in production but

also transportation, processing and

marketing. For developed economies

marketing efficiency of fruits and vegetable

retailing industries is becoming increasingly

important. India's diverse climate ensures

availability of all varieties of fresh fruits &

vegetables. There are certain problems faced

by the farmers, wholesalers, retailers and

customers in fruits & vegetable marketing.

Like inappropriate estimation of market,

fluctuation in demand & supply, price

uncertainty, mismatch between production

cost & selling cost. There are also the

problems faced like availability of

infrastructure, finance and credit supply on

time, improper logistic channels. The big

challenge is to have proper balance with

existing intermediaries. Fruits & vegetables

marketing have a huge opportunity with

respect to Pune district. By having proper

distribution channel the fruits and vegetables

marketing efficiency can be increased.

Objectives:

1. To study fruits & vegetables marketing

in Pune district.

2. To identify problems faced by

stakeholders, fruits and vegetables

marketing problems and suggest suitable

strategies.

3. To study the factors influencing the

marketing cost, market margin and

marketing efficiency.

Hypotheses of the study:

1. There is tremendous fluctuation in Fruits

and Vegetables market price.

2. Marketing efficiency and profitability

can be enhanced by proper marketing

channel of fruits & vegetables.

3. Producers are unable to make

appropriate marketing price estimation.

4. There is collusion among traders of fruits

& Vegetables.

Scope of the study:

Geographical scope- Research work

is related with Pune district only.

Selected Fruits : 1. Pomegranate. 2. Guava

Selected Vegetables : 1.Brinjal 2.Tomato




Limitations of the study:

1. Study is related with selected Pune district only.

2. Study is related with selected fruits & vegetables and other are not covered.

Research Methodology:

a) Primary data – Primary data is gathered from small retailers, wholesalers and farmers.

Structured questionnaire is prepared and it is filled up by 200 farmers, 30 wholesellers & 60

retailers.

b) Secondary Data – Secondary data is gathered mainly from research articles, reference

books on Fruits and vegetables vegetable retailing and retail management, research journals,

publications, reports, websites, records from Agriculture Universities and APMC .

c) Population

Population for the study refers to the entire group of farmers, wholesellers. Retailers APMC

related with production and marketing of fruits & vegetables Pune District.

d) Selection of Sample –

i) Selection of District:

Pune district has been selected.

Sr.No Name of the District Selected Area Covered

under Fruits (Ha.)

Area Covered under

Vegetables (Ha.)

1 Pune 28551. 25672

(Source: Report of the Joint Inspection Team for their visit to Maharashtra during 27th May

to 3rd June, 2015 to review National Horticulture Mission Progress & District Profiles)

Justification for selection of District: Selected district have more area under fruits &

vegetable cultivation

ii) Selection of Taluka and APMC:

Sr.No Selected District Selected Taluka Selected APMC

1 Pune Khed Khed

Junnar Junnar(Narayangaon)

Justification for selection of Talukas & APMC: Selected Talukas have more area under

cultivation for selected fruits & vegetables.AS the selection of Taluka is done its APMC is

selected.

iii) Selection of Fruits and Vegetables Producer:

Sr.No Selected

District

Selected

Taluka

Fruit

Growers

Vegetable

Growers

1 Pune Khed 30 70

Junnar 30 70

Justification for selection of Fruit & vegetable Growers: Simple random & convenient

sampling method is used for the selection of fruits & vegetables farmer in selected talukas.

iv)Selection of wholesellers & Retailers:

Sr.

No

District Taluka Fruit

Wholeseller

Vegetable

Wholeseller

Fruit

Retailer

Vegetable

Retailer

1 Pune Khed 5 10 10 20




Junnar 5 10 10 20

Justification for selection of wholesellers & retailers: Convenient sampling method is

used for selection of wholesellers & retailers for fruits & Vegetables.

f) Techniques of Analysis:

Questionnaire is used to collect the data from respondents. Several questioning techniques is

used to design questionnaire. The study has employed five point Likert scaled questions,

multiple choice rating questions, dichotomous questions, close ended questions and single

answer questions respectively. Excel and SPSS is used for data analysis.

Findings:

1. 95% Farmers are male & 5% farmers are

female. This shows that majority of

farmers are male.25% belongs to age

category of 18-35, 38% to 36-45 and 37

% above 46 years. This indicates that

majority of farmers from age group

above 36 yrs.60% Farmers are

undergraduate followed by 32% graduate

& 8 % post graduate indicating that the

literacy level in farmers is very poor.

2. 58% of irrigation is through flow, 15%

by sprinkler & 27 % by drip. This

indicates poor awareness about proper &

efficient irrigation method

3. 65% family members work as the labour

in filled & 35 % farmers utilize the paid

labour. This misleads poor calculation of

variable cost.

4. 82% farmers are not aware about

changing marketing practices. This

indicates the inefficient use of proper

marketing practices by farmers.

5. 100% farmers agree that pricing method

of fruits and vegetable is wrong as price

is governed by buyer and not seller. This

leads to the wrong estimations of price &

profit.

6. 94 % farmers agree that inability to

maintain stock is the major problem.

This indicates that poor infrastructural

facilities are available with high cost.

7. 78 % said low investment, 82% said

difficulties in getting returns from trades,

41% competition from other farmers,

74% said increased electricity rate, 16 %

said increased bank interest rates, 88%

said price estimation, 74% said credit

facility, 36 % said natural calamities, 63

% said demand estimation, 82%

exploitation by traders, 73 % said

transport charges and 26% said non

cooperation from Government officials

are the major problems faced by farmers.

8. 14% farmers sell their produce in weekly

markets, 16 commission agents, 18%

wholesellers, 2% export agencies, 36 %

in nearest APMC and 14% to retailer.

This indicates the farmers are not aware

of proper marketing channel.

9. 33% farmers say that they receive

payment after more than two days, 27%

Say two days, 27% say after one day and

12 % say that they receive payment on

same day. This indicates that the

payment system is not standardized and

regulated.

10. 42% farmers says profit margin is below

10%,42 % say between 11-20%,10% say

between 21-30%,5% say between 31-

40% and 1% say it‘s more than 40%.This

indicates the profit share of farmers is

very low and unpredictable.

11. 53% farmers agree that fruits are more

profitable, 25% say vegetables and 3 %

say other crops are more profitable. This

indicates the big reforms are needed to

increase the profitability in vegetables &

fruits.

12. 887% farmers say that there is no impact

of government policies on farming of

fruits & vegetables. This indicates that

awareness among farmers regarding

govt, policies is poor and need to be

enhanced.

13. 100% farmers agree that they do not get

the estimated price. This indicates that

estimation is poor and pricing method is

faulty.




14. 98% farmers say traders policies, 83%

say faulty distribution channel,70% say

Government policies, 40% say excess

production & 21% say natural calamities

are the reason for not getting estimated

price.

15. 76 % farmers are not satisfied with role

of APMC in selling fruits & 84%

farmers are not satisfied with role of

APMC in selling vegetables. This

indicates that the role of APMC is

inefficient in protecting farmer‘s interest.

16. 94% farmers agree that there is collusion

among traders. This indicates the serious

threat for efficient marketing system for

farmers.

17. 86% farmers say government does not

have control over traders. This indicates

the legal amendments in rules for traders

and APMC and their serious

implementation is needed

18. 76 % retailers said marketing industry is

going through structural change,61.1%

said system change is there and 82% said

marketing industry changing in terms of

service,93% retailers agreed that now

customers are having more options,86%

said customers taste is changing, 76%

said customers beliefs are changing and

53% said there is change in customers

loyalty. It states that customer behavioral

pattern is changing.

19. 83 % retailers say that marketing of

fruits and vegetable have change in and

as impact on business. terms of less

pace,87% say ambience, 72% say credit

facility, ,65% say parking facility,73%

say variety of commodity and brand,81%

say proximity93% say relationship with

retailers,82 say sale in loose

quantity,92% say place ,78% retailers

say billing system,88% say credit card

system,62% say costlier commodity

price,64% say multiple counters,89% say

supporting staff,88 % say delivery

facility,67 % say discount facility & 89%

say advertisement does not have impact

on business. From this it can be

concluded that retailers need to be made

aware of changing marketing practices

thoroughly.

20. 44% retailers agree that margin of profit

is more than 40%,30% say it is between

31-40%, 19 % say it is 21-30% & 7%

say it is between 11-20%

21. 66% retailers say that prices are not as

per estimation, while 44% retailers say

that prices are as per estimation.

22. 70% retailers said there is no role of

APMC in price control while 30% said

APC as the role in price control.

23. 93% retailers agreed that distribution

channel as impact on profit & 7% say

that there is no impact of distribution

channel on profit.

24. 77% retailers agree that the pricing

system of fruits & vegetables is not

correct and 33% say it is correct.

25. 87% wholesellers are aware of changing

trade practices of fruits & vegetables

marketing.

26. 93% wholesellers agree that customer

behavior is changing in terms of taste,

90% say in terms of loyalty and 77% say

it is changing in terms of belief.85%

wholesellers agree that wholesale trade is

going change in terms of services, 80%

in terms of systems & 70% in terms of

structure.

27. 10% wholsellers strongly disagreed and

90 % strongly agreed that discount given

affect business.

28. 13% wholsellers strongly disagreed and

87 % strongly agreed that stock

maintenance affect business.

29. 87% wholsellers say that variety of fruits

& vegetables as impact on their business.

30. 47% farmers agreed that their profit

margin is above 40%, 20% said it is

between 21-40, 28% said it is between

21-30% and 5% said it is between 11-

20%

31. 82% wholsellers say prices are as per

their estimation while 18% denied.

32. 72% wholesellers say that govt policy

has an impact on business while 28% say

there is no any impact of Govt. policy.




33. 68% wholsellers say that APC facilities

are not upto the mark, 25% say it is good

while 7% say it is very good.

34. 75% APMC members says traders

policy, 67% say wrong estimation by

farmrs,67%say government policy,58%

say demand supply imbalance & 50%

say perishable nature of commodity is

the major reason for price fluctuation.

35. 100% APMC members said that

government should decide the pricing

policy, 83% said free storage facility for

farmers and 75% said there should be

strict guidelines for traders from

government.

36. 100% APMC members said most

common charges paid by farmers are for

labour, weighing, commission and 34%

said for warehouse charges are paid.

37. 100% APMC members say there is

impact of distribution channel on pricing

& Profit

38. 100% APMC members say that trader‘s

margin is more than 40%. & 75% APMC

members say that farmers margin is

below 20% and 25% APMC members

say it is between 20-40%.

39. 100% APMC members agree that price

dependency is on traders policy.83% say

on quality, 75% say on demand &

supply. While 100% APMC member

agree that price does not depend on

producer‘s policy.

40. 100% APMC member agree that there is

collusion among traders.

41. APMC members suggest that farmers

should encourage contract framing or

group farming. They should take

trainings on forecasting demand. They

should plan the production schedule

rather than following everyone. They

should try to be present in APMC during

auction as majority farmers send the

produce and come to collect receipts.

Suggestions:

1. Farmers should be made aware about

proper marketing channels. This will

increase marketing efficiency. Share of

farmer in consumer rupee needs to be

increased by various initiatives.

Government needs to take special

initiative in this regards through state

marketing board.

2. Young qualified force should be

attracted by launching new schemes fro

educated and young farmers.

Professionalism will increase by this.

Pensions system can be implemented in

agriculture sector.

3. The operational & maintenance cost can

be cut down by group farming and

contract farming. Infrastructural facilities

for fruits & vegetables must be

completely provided by Government in

order to tackle the problem of storage &

pershability of fruits & vegetables.

4. Initiatives to train farmers in having

proper accounting will help them in

tracking the production cost efficiently.

5. Markets at micro level need to be

established with cold storage and

infrastructural facilities for drying,

processing, grading, storing, weighing,

packaging, labeling & financing.

Farmers should be made aware about the

benefits in trading through APMC.

6. Special horticultural and agricultural

trainings need to be provided to farmer‘s

family to increase skills in order enhance

the efficiency. State Agriculture

Marketing Board has to take initiative in

making famers aware about changing

marketing practices. This will help in

efficient use of proper marketing

practices by farmers.

7. Forward & backward linkages, Future

trading and specially input – output

linkage needs of restructuring in the

changing environment of agricultural

marketing to increase share o farmer in

consumer rupee. APMC needs to take

strict initiative against collusion of

traders to avoid the exploitation of

producers.

8. Facilities of APMC need to be reviewed

and further modification has to be

considered to increase satisfaction level

of its stake holders. Government should

make efforts to provide physical

facilities in and around the markets




including storage, transport, processing

leading in hindering the intermediaries in

taking advantages from the situation.

9. Standard pricing policy for agriculture as

to be prepared to have efficient

distribution of consumer rupee among

various stake holders. The price

determining factor is traders policy this

as to be shifted to producer policy

considering the volatile nature of

agriculture environment. Branding of

fruits and vegetables should be initiated.

10. The online services can add in the value

of fruits & vegetables marketing in large

extent. Selection of proper channel of

distribution yields more profit.

11. Fruits & vegetables market is going

through change in terms of customer,

structure, system & service. Farmers and

traders need to be made aware and

trained to sustain in this changing

marketing environment. Framers need to

be provided knowledge about marketing

cost, marketing margin and marketing

efficiency and its estimation.

Government has to take initiative in this

with various institutions.

12. Agricultural universities & marketing

boards. Should take initiative in

designing channel of distribution for

fruits and vegetables. They can help

farmers need to plan their produce

according to market and for these the

extensive farmer training has to be taken

in hands with various Government &

private institutions.

13. Fluctuating market prices can be

controlled with support price policies if

implemented properly and efficiently.

Training for the appropriate price

estimation is the biggest call of hour and

it has to initiate. Collusion has to be

developed between producers and traders

through various training programs and

APMC acting as mediator in it.

14. The APMC must setup infrastructure

with international standards in this era of

liberalization, privatization and

globalization.

Conclusion:

Increase in literacy of consumer fruits &

vegetables industry is in boom and through

drastic change. There is change in

customers‘ behavioural pattern and

consumption pattern which has changed the

scenario of retail industry. The share of

producer in consumer rupees is hardly 8-15

percent which on other side is above 85% of

the intermediaries. This states the need of

reforms in fruit & vegetables retail industry

in order to avoid exploitation of producer.

Problems like availability of infrastructure

finance and guidance is restricting them to

select proper marketing channel. Labor

needs to be managed properly and

efficiently. Efficiency of marketing of fruits

& vegetables is hampering due to lack of

awareness about marketing environment

among producers. In these lights of

marketing reforms the problems of fruits and

vegetables marketing are studied in this

research and tried to overcome with some

suggestions. Producers share as to be

increased in the consumer rupees with

proper marketing strategies. Government has

to play a major role in increasing the

marketing efficiency and solve the problems

of producer and other intermediaries. This

study has definitely found need of modern

and redefined research tools and

methodology in field of Agricultural

marketing. Researcher is very much sure that

these suggestions will improve the efficiency

of Marketing of fruits & vegetables.

Government has to play a lead role in this

with the help of State Agriculture marketing

Board and APMC with the private

institutions.

References:

1. Kohls, R. U. (1967). Marketing of

Agricultural Products. New York:

Macmillan Publishing Company.

2. Kothari, C. (2013). Research

Methodology: Methods and Techniques.

New Delhi: New Age International.

3. Kotler, K. K. (2011). Marketing

Management. New delhi: India pvt Ltd.




4. Kotler, P., & Keller, K. (2016).

Marketing Management. Noida: Pearson

India.

5. Nanaware, S. N. (2013). An analytical

study of e marketing practices of agro

products. Savitribai Phule Pune

University.

6. Nutrition, N. I. (2006). Diet and

nutritional status of population and

prevalence of hypertension among adults

in rural areas. Hyderabad: National

Institute of Nutrition.

7. Ohen, S. B., Umeze, G. E., & Inyang, E.

(2014). Consumer Purchasing

Behaviourfor Fruits and Vegetables

among Civil Servants in Essien Udim

Local Government Area Akwa Ibom

State, Nigeria. Food Science and Quality

Management, 55-60.

8. Omidi, N. M. (2011). Agricultural

Marketing Challenges and Barriers in

Iran . African Journal of Business

Management, 13580-81.

9. Piali, H., & Simayan, P. (2011). Need for

Paradigm Shift to Improve Supply Chain

Management of Fruits & Vegetables in

India ,. Asian Journal of Agriculture and

Rural Development, 25-35.




FORENSIC ACCOUNTING AND FRAUD INVESTIGATION

CA MOTILAL B. BHAVNANI

CFO At Synergy Lifestyles Private Limited

201 Sona Apartment GOL Maidan Ulhasnagar, Maharashtra.

ABSTRACT Fraud is an activity that takes place in a social setting and has severe consequences

for the economy, corporations, and individuals. It is an opportunistic infection that bursts

forth when greed meets the possibility of deception. The fraud investigator is like the

attending physician looking and listening for the signs and symptoms that reveal an outbreak.

The Association of Certified Fraud Examiners(ACFE) defines occupational fraud as: “The

use of one‟s occupation for personal enrichment through the deliberate misuse or

misapplication of the employing organization‟s resources or assets.”. Since the subject of this

article is Forensic Accounting and Fraud Investigation, we then outline the nature of

workplace fraud through a look at the Forensic accounting. We complete the tour with a look

at the motives of fraudsters and the consequences of their acts. Although forensic accounting

involves performing a wide range of activities, in general, it can be divided into two broad

areas. Investigative accounting and Judicial support. As part of the investigative accounting

there may appear Financial Crime examination and Independent forensic audit while judicial

support refers to consulting services, expertise and other services. Forensic Accounting helps

in unearthing frauds perpetuated by an entity and acts as an instrument which reduces their

occurrences.

Keywords - Forensic Accounting, Scope of Forensic Accounting, Steps in Forensic

Accounting, Frauds, Ingredients of Frauds, Types of frauds, Consequences of fraud, Fraud

Triangle

INTRODUCTION: -

When times are good, people steal,

when times are bad, people steal more‖. In

the first decade of the twenty-first century,

the news has been filled with reports on

frauds and indicators that it is increasing in

its scope and costs to the major economies

of the world. Almost everyone has read

about corporate financial statement frauds

such as Enron and WorldCom, Satyam

Scam, 2g Spectrum, Common Wealth

games or frauds against the government

such as false claims following Katrina, or

huge Ponzi schemes such as the Madoff

scam that set a record for losses associated

with a fraud. Many people have been

directly affected by identity theft. The

economic downturn that began in 2008 has

made it hard to rebound from such losses.

To make matters worse, reports on

activities related to fraud bear bad news.

Fraud is a worldwide phenomenon that

affects all continents and all sectors of the

economy. Fraud encompasses a wide-range

of illicit practices and illegal acts involving

intentional deception or misrepresentation.

According to Association of Certified Fraud

Examiners (ACFE), fraud is ―a deception or

misrepresentation that an individual or

entity makes knowing that

misrepresentation could result in some

unauthorized benefit to the individual or to

the entity or some other party.

Fraud cheats the target organization

of its legitimate income and results in a loss

of goods, money and even goodwill and

reputation. Fraud often employs illegal and

immoral or unfair means.

The fraud involving persons from

the leadership level or known under the

name ―managerial fraud‖ and the one

involving only entity‘s employees is named

―fraud by employees‘ association.

Fraud is a legal and not an

accounting concept. For this reason, the




accountants have traditionally chosen to

treat it as a concept alien to them.

Fraud evokes a visceral reaction in

us. It is an abuse of our expectation of fair

treatment by fellow human beings. Beyond

that, it is a blow to our self-image as savvy

managers capable of deterring or detecting

a fraudulent scheme. Whether we react

because of values or because of vanity,

nobody likes to be duped. Many elements

of modern society are focused on

maintaining an environment of fair dealing.

Laws are passed; agencies are established to

enforce them; police are hired; ethics and

morals are taught in schools and learned in

businesses; and criminals are punished by

the forfeiture of their ill-gotten gains and

personal liberty—all with a view to

deterring, detecting, and punishing fraud.

The profession of auditing grew out of

society‘s need to ensure fair and correct

dealings in commerce and government. One

of the central outcomes of fraud is financial

loss. Therefore, in the minds of the

investing public, the accounting and

auditing profession is inextricably linked

with fraud deterrence, fraud detection, and

fraud investigation. This is true to such an

extent that there are those whose perception

of what can be realistically accomplished in

an audit frequently exceeds the services that

any accountant or auditor can deliver and,

in terms of cost, exceeds what any business

might be willing to pay .In the past few

years ,public anger over occurrences of

massive fraud in public corporations has

spawned new legislation, new auditing

standards, new oversight of the accounting

profession, and greater penalties for those

who conspire to commit or conceal

financial fraud.

FORENSIC ACCOUNTING: -

The integration of accounting,

auditing and investigative skills yields the

specialty known as Forensic Accounting.

"Forensic accounting" provides an

accounting analysis that is suitable to the

court which will form the basis for

discussion, debate and ultimately dispute

resolution. Forensic Accounting

encompasses both Litigation Support and

Investigative Accounting. As Forensic

Accountants, they utilize accounting,

auditing and investigative skills when

investigating. Forensic Accountants are

trained to look beyond the numbers and

deal with the business reality of the

situation. Now in 21st century, Forensic

accounting has come into limelight due to

rapid increase in financial frauds and white-

collar crimes. Fraud was something the

internal or external auditors were supposed

to guard against through their periodic

audits. Now, the accountants know that

auditors can only check for the compliance

of a company's books to generally accepted

accounting principles, auditing standards,

and company policies. Thus, a new

category of accounting was needed to detect

the fraud in companies that suspected

fraudulent transactions. This area of

accounting is known as 'forensic

accounting' Forensic Accounting is a

simply analysis of evidences. Forensic

accounting is the specialty practice area of

accounting that describes engagements,

which result from real or anticipated

litigation. The word forensic accounting can

be divided into two parts –

1. Forensic means relating to, or used in

courts of law or public debate or

argument.

2. Accounting means language that

provides information about the financial

position of an organization.

According to American Institute of

Certified Public Accountants (AICPA):

―Forensic accounting is the application of

accounting principles, theories and

disciplines to facts or hypothesis at issues in

a legal dispute and encompasses every

branch of accounting knowledge.

SCOPE OF FORENSICACCOUNTING:

A large part of forensic accounting

work relates to fraud detection and fraud

investigation. Forensic accountants are

asked to take up assignments related to

disputes, financial crimes, corrupt practices,

business leakages and siphoning of funds,

whistleblower complaints of any kind and




many other situations where any

wrongdoing is suspected.

Forensic accountants can be

appointed by corporate management; third

parties effected in any situation, bankers, or

even under the law or by government

agencies.

A Forensic Accountant is expected

to be able to perform all the tasks that an

accountant and an auditor is able to

perform. In addition, he should have in his

team, reasonable expertise in interviewing,

interrogation, data mining and investigative

analysis, field investigation, computer

forensic and handwriting and specimen

signature analysis

STEPS IN FORENSIC ACCOUNTING:

The broad steps in Forensic Accounting

are as under

1. Establishing a clear mandate outlining

specific objectives and deliverable,

2. Data and Evidence collection,

3. Data Analysis,

4. Evaluation of all data and evidence

collected,

5. Reporting.

INGREDIENTS OF FRAUD: -

There are four elements to any fraud

1) A false representation of a material

nature (either misstatement or omission

of material fact).

2) Scienter: Knowledge that the

representation is a false or reckless

disregard for truth.

3) Reliance: The person receiving the

representation has reasonably and

justifiable relied on it.

4) Damages: such receiving party has

sustained financial damages on account

of the above.

Organizations of all types and sizes

are subject to fraud. On a number of

occasions over the past few decades, major

public companies have experienced

financial reporting fraud resulting in

turmoil in the capital market, a loss of

shareholder value, and in some cases the

bankruptcy of the company itself.

Financial statement fraud was a

contributing factor to the financial crisis

and it threatened the efficiency, liquidity

and safety of both debt and capital markets.

Frauds have increased uncertainty and

violability in financial markets, shaking

investor confidence worldwide. It also

reduces the creditability of financial

information that investors use in the

investment decisions. Taking into account

the loss of investor confidence as well as

reputational damage and potential fines and

criminal actions, it is clear why financial

statement should be every manager‘s worst

fraud related nightmare.

WHO COMMITS FRAUD?

Generally, there are 3 groups of

business people who commit financial

statement fraud. They range from senior

management CEO, CFO, Mid and lower

level management and organizational

criminals CEOs and CFOs commit

accounting frauds to conceal true business

performance to preserve personal status and

control and to maintain personal income

and wealth

Mid and lower level employees

falsify financial statements related to their

area of responsibility (subsidiary, division

or other unit) to conceal poor performance

and/or to earn performance based bonuses.

Organizational criminals falsify

financial statements to obtain loans or to

inflate a stock they plan to sell in a ―pump

an dums‖ scheme.

While many changes in financial

audit processes have stemmed from

financial fraud or manipulation history and

related research repeatedly demonstrates

that a financial audit simply cannot be

relied upon to detect fraud at any significant

level.

CONSEQUENCES OF FRAUDS: -

Fraudulent financial reporting can

have significant consequences for the

organization and its stakeholders as well as

for public confidence in the capital markers

Fraud is an issue that all organisations may

face regardless of size, industry or country.

If the organisation has valuable property

(cash, goods, information or services), then

fraud may be attempted. It is often high-




profile frauds in large multi-national

organisations that are reported on in the

media and smaller organisations may feel

they are unlikely to be a target of fraudsters.

However, according to the ACFE report,

small businesses (classified as those with

less than 100 employees) suffer fraud more

frequently than large organisations and are

hit by higher average losses. When small

companies are hit by large fraud losses,

they are less likely to be able to absorb the

damage than a larger company and may

even go out of business as a result.

The results of PwC‘s survey showed

that companies reporting fraud were spread

across many industries, with at least a

quarter of the respondents in any one

industry suffering from fraudulent

incidents. Industries suffering the highest

average losses were insurance and

industrial manufacturing. Losses in the

financial services industry, a sector

frequently in the press and one with which

fraud is often associated, were below

average. Even not-for-profit organisations

are not immune to fraud, with government

institutions and many charities falling

victim to unscrupulous fraudsters. As one

director working in the international

development and aid sector has pointed out,

‗In my sector, fraud is not a possibility, it is

a reality and we are always dealing with a

number of suspicious incidents on a

permanent basis.‘ PwC‘s survey also

revealed that incidences of fraud were

highest in companies in North America,

Africa and Central and Eastern Europe

(CEE), where more than half of the

companies reported fraud. It was lowest in

the Western European region, although the

UK was much higher than the average for

this region, with levels of fraud similar to

those in CEE. The EIU poll commissioned

by Kroll in 2007 found that respondents in

countries such as India and China have seen

a significant increase in the prevalence of

corporate fraud in the last three years and

this trend is likely to increase in businesses

operating in emerging markets. Although

fraud is prevalent across organisations of all

sizes and in all sectors and locations,

research shows that certain business models

will involve greater levels of fraud risk than

others. The control environment should be

adjusted to fit with the degree of risk

exposure.

THE FRAUD CYCLE: -

The fraud cycle essentially begins

with the plans of the fraudster leading up to

the committing of the fraud act. Once

committed, the fraudster converts the asset

to cash, if necessary, and conceals the

fraud. The existence of a fraud usually

comes to light through

(1) an allegation, complaint, or a rumor of

fraud brought by a third party (a disgruntled

supplier or a fellow employee);

(2) an investigator‘s intuition or general

suspicion that something is awry;

(3) an exception from an expectation of a

person senior to the suspect (an

unacceptable condition, profits, sales, costs,

assets, or liabilities are too low or too high);

(4) the accidental discovery that something

is missing—cash, property, reports, files,

documents, or data;

(5) results from an audit;

(6) results of controls, especially antifraud

controls.

Based on the statistics from the

ACFE‘s RTTNs, an average of about 60

percent of all frauds reported were

discovered either by a tip or accident,

indicating the need for more effective

proactive detection methods such as

internal controls and internal audits. A

fraud investigation is of necessity based on

legal factors, because any fraud may end up

in a court of law. The immediate facts to

determine are whether a fraud has occurred

and whether there is: (1) a criminal law, (2)

an apparent breach of that law, (3) a

perpetrator, and (4) a victim.

The six basic steps in the fraud

investigation are:

1. Acquire all available details and

documents relating to the allegation.

2. Assess the allegation against the

available documentation.




3. Assess the corporate environment

relative to the person in question.

4. Ask whether a theory of fraud can be

developed at this stage. Is there motive and

opportunity?

5. Determine whether the available

evidence makes sense. Does it meet the test

of business reality?

6. Communicate with appropriate parties on

the details and status of the fraud.

After performing these steps, two

possibilities exist. Either one has identified

the fraudster and knows who he/she is, or

one has not. If not, more investigation is

necessary. But if one does identify the

fraudster, the process becomes critical to

what is no longer an investigation, rather a

pursuit of legal action. Evidence gathered

may consist of the testimony of witnesses,

documents, items (means and instruments,

or fruits of the crime), and possibly the

confession of the perpetrator. Experienced

fraud investigators know what evidence is

needed to prove the crime and how to attain

that evidence. Typically, interviewing the

alleged, or known, fraudster is done only

after competent and sufficient data have

been gathered, assessed, and reasoned. If

prosecution of a civil or criminal charge is

sought, evidence must be presented in

court—which is where the expert witness

skill of a forensic accountant or fraud

auditor is valuable. The court, trier of fact,

then resolves the charge of fraud ending the

fraud cycle. A successful prosecution needs

someone who can explain, in lay person‘s

terms, the records, data, documents,

financial information, and files supporting

the prosecutor‘s position. Every fraud has

its own unique wrinkles. All thieves do not

think alike. They tend to be opportunists.

Given a set of circumstances that allow

them to steal, they take the easiest way,

usually weighing risks and rewards

carefully. Culprits usually leave trails and

sometimes make mistakes. Auditors must

learn to look for these signs, or red flags, as

they will be referred to in this book. While

each fraud is different in some ways, they

all have some similarities.

TYPES OF FRAUD: -

Fraud can mean many things and

result from many varied relationships

between offenders and victims. Examples

of fraud include:

a. crimes by individuals against

consumers, clients or other business

people, e.g. misrepresentation of the

quality of goods; pyramid trading

schemes

b. employee fraud against employers, e.g.

payroll fraud; falsifying expense claims;

thefts of cash, assets or intellectual

property (IP); false accounting

c. crimes by businesses against investors,

consumers and employees, e.g. financial

statement fraud; selling counterfeit

goods as genuine ones; not paying over

tax or National Insurance contributions

paid by staff

d. crimes against financial institutions, e.g.

using lost and stolen credit cards;

cheque frauds; fraudulent insurance

claims

e. crimes by individuals or businesses

against government, e.g. grant fraud;

social security benefit claim frauds; tax

evasion

f. crimes by professional criminals against

major organisations, e.g. major

counterfeiting rings;

g. mortgage frauds; ‗advance fee‘ frauds;

corporate identity fraud; money

laundering

h. e-crime by people using computers and

technology to commit crimes, e.g.

phishing; spamming; copyright crimes;

hacking; social engineering frauds.

WHY DO PEOPLE COMMIT FRAUD?

There is no single reason behind

fraud and any explanation of it needs to

take account of various factors. Looking

from the fraudster‘s perspective, it is

necessary to take account of:

a. motivation of potential offenders

b. conditions under which people can

rationalise their prospective crimes

away

c. opportunities to commit crime(s)

d. perceived suitability of targets for fraud




e. technical ability of the fraudster

f. expected and actual risk of discovery

after the fraud has been carried out

g. expectations of consequences of

discovery (including non-penal

consequences such as job loss and

family stigma, proceeds of crime

confiscation, and traditional criminal

sanctions)

h. Actual consequences of discovery.

THE FRAUD TRIANGLE: -

A common model that brings

together a number of these aspects is the

Fraud Triangle. This model is built on the

premise that fraud is likely to result from a

combination of three factors: motivation,

opportunity and rationalisation.

1. Motivation - In simple terms,

motivation is typically based on either

greed or need. Stoy Hayward‘s (BDO)

most recent Fraud Track survey found

that greed continues to be the main

cause of fraud, resulting in 63% of cases

in 2007 where a cause was cited. Other

causes cited included problems from

debts and gambling. Many people are

faced with the opportunity to commit

fraud, and only a minority of the greedy

and needy do so. Personality and

temperament, including how frightened

people are about the consequences of

taking risks, play a role. Some people

with good objective principles can fall

into bad company and develop tastes for

the fast life, which tempts them to

fraud. Others are tempted only when

faced with ruin anyway.

2. Opportunity - In terms of opportunity,

fraud is more likely in companies where

there is a weak internal control system,

poor security over company property,

little fear of exposure and likelihood of

detection, or unclear policies with

regard to acceptable behaviour.

Research has shown that some

employees are totally honest, some are

totally dishonest, but that many are

swayed by opportunity.

3. Rationalisation - Many people obey

the law because they believe in it and/or

they are afraid of being shamed or

rejected by people they care about if

they are caught. However, some people

may be able to rationalise fraudulent

actions as:

4. necessary – especially when done for

the business

5. harmless – because the victim is large

enough to absorb the impact

6. justified – because ‗the victim deserved

it‘ or ‗because I was mistreated.‘

OBJECTIVES: -

The objective of this article is to

know about Fraud and Forensic Accounting

and Forensic Auditing Techniques which

control the fraud related activities and save

on the financial leakages.

HYPOTHESIS: -

Knowledge and understanding of

the elements of Fraud and strong internal

forensic accounting control the financial

loss incurred due to Frauds. Study of

Forensic Audit and Forensic accounting

helps corporate and other business houses

in the Risk Management and thereby it

becomes helpful in the right operational

management of Business which are clean in

their operations and does not allow seeds of

fraud which causes non-productive use of

scares financial resources.

RESEARCH METHODOLOGY: -

1) Data Collection and Measurement

Primary Data: The data available from

various sources, in some case based on

interviews with the people involved

shall be assembled and analyzed. The

data will be presented in such a form to

derive conclusions and substantiate

findings of secondary data.

Secondary Data shall be collected from

various journals, web sites and RBI and

other statutory bodies guidelines issued

from time to time

2) Tabulation and presentation of Data

3) Analysis

4) Drawing Conclusions

5) Expected Results of the study

EXPECTED CONTRIBUTION: -

It must be recognized that the

complexities of the business world and the




ingenuity of high educated white-collar

criminals will always manage to produce

schemes that unfortunately go undetected

until they reach significant proportions. The

Forensic Accounting investigators will

investigate, prosecutors will convict, and

the regulator will react with new and more

requirements. However, fraud will persist.

The study will help in analyzing various

aspects of Forensic Accounting and Fraud

Investigation. The fraud will be contained

and managed effectively through the tools

of Forensic accounting and forensic

auditing

REFERENCES: -

1. Forensic Accounting and Fraud

Investigation for Non-Experts by

Howard Silverstone, Michael Sheetz,

Published by John Wiley & Sons. Inc.

Hoboken, New Jersey ,2007

2. Fraud Risk Management: A Guide to

Good Practice by Helenne Doody,

Published by CIMA, 2008

3. Price Waterhouse Coopers, ―Financial

Fraud-understanding Root Causes, ―

investigation & Forensic Services

Report, 2002,1

4. Price Waterhouse Coopers, Key

elements of Anti-Fraud Programs and

controls, A white Paper 2003, 26-27

5. Association of Certified Fraud

Examiners, Fraud examiners manual,

Austin Tex, Association of Certified

Fraud Examiners, 2002




EMERGING TRENDS IN BANKING INDUSTRY:

CHALLENGES AND PERSPECTIVES

DR. J. P. BHOSALE

Head : Research Centre in Commerce,

Arts, Commerce & Science College, Narayangaon,

Tal : Junnar, Dist : Pune, Pin : 410504, Maharashtra, India.

ABSTRACT Today, we are having a fairly well developed banking system with different classes of

banks – public sector banks, foreign banks, private sector banks – both old and new

generation, regional rural banks and cooperative banks with the Reserve Bank of India as the

fountain Head of the system.

In India the banking industry has experienced a series of significant transformations

in the last few decades. Among the most important of them is the change in the type of

organizations that dominate the landscape. Since the eighties, banks have increased the

scope and scale of their activities and several banks have become very large institutions with

a presence in multiple regions of the country.' The paper examines the new trends in sector

banking and its challenges and Perspectives. It will be useful to the academicians, banking

and insurance personnel, financial advisors, professionals, students and researchers.

Common readers will also find it informative and inculcating.

KEYWORDS: E-Banking, NPA, Networking, Global Banking, Information Technology.

INTRODUCTION:

Today banking is known as

innovative banking. The Financial sector, of

which Banking sector is the largest player,

plays a dominant role in building the

economy of an individual as well as a

nation. Banks have control over a large part

of the supply of money in circulation. They

are the main stimulus for the economic

progress of a country. A strong banking and

finance sector is, therefore, necessary for a

country to emerge as a developed one. It is

vital for growth, creation of jobs, generation

of wealth, eradication of poverty,

encouraging entrepreneurial activity and

increasing the gross domestic product.

Information technology has given rise to

new innovations in the product designing

and their delivery in the banking and finance

industries. Customer services and customer

satisfaction are their prime work. The focus

is shifting from mass banking to class

banking with the introduction of value added

and customized products.

The Banking sector has been

immensely benefited from the

implementation of superior technology

during the recent past, almost in every

nation in the world. Productivity

enhancement, innovative products, speedy

transactions seamless transfer of funds, real

time information system, and efficient risk

management are some of the advantage

derived through the technology. Information

technology has also improved the efficiency

and robustness of business processes across

banking sector. India's banking sector has

made rapid strides in reforming itself to the

new competitive business environment.

Technological infrastructure has become an

indispensable part of the reforms process in

the banking system, with the gradual

development of sophisticated instruments

and innovations in market practices.

The banking sector in India is

progressing with the increased growth in

customer base, due to the newly improved

and innovative facilities offered by banks.

The economic growth of the country is an

indicator for the growth of the banking

sector. The Indian economy is projected to

grow at a rate of 5-6 percent the country‘s

banking industry is expected to reflect this

growth




OBJECTIVES OF THE STUDY

The main objectives of the present

research study are as under:

1. To understand the emerging technological

trends in Banking Sector in India.

2. To trace the utility of technology in

Banking.

3. To examine the challenges and

perspectives before Indian Banking Sector.

RESEARCH METHODOLOGY

This research is based on the analysis

of the secondary data and the research

proposes to throw light on the emerging

technological trends in banking sector.

The present research study uses the

most recent available published secondary

data. To achieve the above stated objectives,

the secondary data was used. The secondary

data that are mainly used are published in

annual reports of various banks and survey

reports of leading business magazines. The

secondary data was also used from various

reference books related to E-Banking, E-

Commerce, M-Commerce, Information

Technology, Finance, Commerce,

Management etc. For the said research study

the secondary data is also collected from the

various National and International Research

Journals which are related to Commerce,

Management, Banking and Finance. The

Secondary data is also collected from

various websites.

EMERGING TRENDS IN BANKING

SECTOR

The Indian banking industry is not

lagging behind, it has started providing

services electronically over the internet.

These services rendered over electronic

media include:

1. Electronic Payment Services – E-

Cheques : E-Cheques is one of the most

impact service offered by banks. Now-a-

days we are hearing about e-governance,

email, e-commerce, e-tail etc. In the same

manner, a new technology is being

developed in US for introduction of e-

cheque, which will eventually replace the

conventional paper cheque. India, as

harbinger to the introduction of e-cheque,

the Negotiable Instruments Act has already

been amended to include; Truncated cheque

and Echeque instruments.

2. Real Time Gross Settlement (RTGS) :

Real Time Gross Settlement system,

introduced in India since March 2004, is a

system through which electronics

instructions can be given by banks to

transfer funds from their account to the

account of another bank. The RTGS system

is maintained and operated account within

two hours.

3. Electronic Funds Transfer (EFT) :

Electronic funds transfer is a system of

processing and communication of payment

through electronic methods. EFT assumes

greater significance in the banking system as

the RBI also encourages the commercial

banks to adopt this technique. Inter and intra

bank transfers of funds are now made

through this EFT mechanism. Transactions

of high value i.e., at least more than one lakh

is now made through this cost effective and

quick system of settlement. Normally,

payments are made through cash, cheques,

drafts and credit cards. The latest in this

process are the debit card system, charge,

digital cash, and electronic purse and so on.

4. Electronic Clearing Service (ECS) :

Electronic Clearing Service is a retail

payment system that can be used to make

bulk payments/receipts of a similar nature

especially where each individual payment is

of a repetitive nature and of relatively

smaller amount. This facility is meant for

companies and government departments to

make/receive large volumes of payments

rather than for funds transfers by

individuals.

5. Automatic Teller Machine (ATM) :

Automatic Teller Machine is the most

popular devise in India, which enables the

customers to withdraw their money 24 hours

a day 7 days a week. It is a devise that

allows customer who has an ATM card to

perform routine banking transactions

without interacting with a human teller. In

addition to cash withdrawal, ATMs can be

used for payment of utility bills, funds

transfer between accounts, deposit of




cheques and cash into accounts, balance

enquiry etc.

6. Electronic Data Interchange (EDI) :

Electronic Data Interchange is the electronic

exchange of business documents like

purchase order, invoices, shipping notices,

receiving advices etc. in a standard,

computer processed, universally accepted

format between trading partners. EDI can

also be used to transmit financial

information and payments in electronic

form.

7. Shared Payment Network System

(SPNS) : SPNS installed by the IBA in the

city of Mumbai, enables electronic banking

service like cash transactions, extended

hours of banking, utility payments, cheques,

point of sale facilities by the SPNS can go to

any ATM linked to S

8. Tele Banking: Tele Banking facilitates

the customer to do entire non-cash related

banking on telephone. Under this devise

Automatic Voice Recorder is used for

simpler queries and transactions. For

complicated queries and transactions,

manned phone terminals are used.

9. Phone Banking: Bank on phone provides

easy access for customers to have large

businesses through telephones. Data are

exchanged over the phone regarding any

queries, to issue instructions on balance

transfer, statement of account, cheque book,

stop payments, new schemes, interest rates

etc. at any convenient time and place. Tele

banking has gone a long way in providing

maximum customer satisfaction within the

limited infrastructure

10. Credit Cards: These plastic cards

enable customers to spend whenever he/she

wants within the prescribed limits and pay

later. Debit card is a prepaid card with

stored value, whereas credit card is post-

paid with fixed limits. It is seen that

spending is higher through debit cards than

with credit cards currently CITY Bank and

time bank have started with Debit cards and

now other banks are also following these to

launch their own cards.

11. Point of sale [POS] Terminal: Payment

card at a retail location for electronic

transfer of fund is called POS. The client

enters his personal identification number

[PIN] and confirms the amount due.

Customer‘s account is automatically debited

with the amount of purchases and it credits

the retailers account POS installed at petrol

stations and large retail houses are linked to

banks network participant sometimes make

illegal money at the cost of investors. SEBI

should find ways to overcome this to give a

good scope for D-Mat in India

12. D-Mat Accounts: D-Mat is nothing but

it is transacting shares business through

electronic media is called D-Mat. Investor

opens an account called D-Mat Accounts

with DPS. They get shares in electronic

form. Then they send the actual shares to the

investor. Investor pays for the opening,

maintenance and collection of shares. This

has reduced the paper work, bad deliveries;

loss of shares and less transaction cost.

However delays in demating, higher cost

charged by the investors has not given a

good start for the growth and scope of D-

Mat in India. Depository.

CHALLENGES BEFORE BANKING

SECTOR The maid challenges before banking

sector are as follows :

1) Customer Satisfaction:-Today,

customers are more value oriented in their

services because they have alternative

choices in it. Hence, each and every bank

has to take care about fulfillment of

customer satisfaction.

2) To Provide several personnel services:-

The present times demanded that banks are

to provide several services for which they

have to expanse in service, social banking

with financial possibilities, selective up

gradation, computerization and innovative

mechanization, better customer services,

effective managerial culture, internal

supervision and control, adequate

profitability, strong organization culture etc.

Therefore banks must be able to provide

complete personal service to the customers

who come with expectations.

3) Competition:-The nationalize banks and

commercial banks have the competition




from foreign and new private sector banks.

Competition in banking sector brings

various challenges before the banks such as

product positioning, innovative ideas and

channels, new market trends, cross selling

etc. Banks are restricting their administrative

folio by converting manpower into machine

power i.e. banks are decreasing manual

powers and getting maximum work done

through machine power. Skilled and

specialized man power is to be utilized and

result oriented targeted staff will be

appointed.

4)Non-Performing Assets:-Non-performing

assets are another challenge to the banking

sector. Vehicle loans and unsecured loans

increases N.P.A. which terms 50% of banks

retail portfolio was also hit due to upward

movement in interest rates, restrictions on

collection practices and soaring real estate

prices. Therefore, every bank has to take

care about regular repayment of loans.

5) Managing Technology:-Developing or

acquiring the right technology, deploying it

optimally and then leveraging it to the

maximum extent is essential to achieve and

maintain high service and efficiency

standards while remaining cost effective and

delivering sustainable return to shareholders.

Early adopters‘ of technology acquire

significant competitive advances Managing

technology is therefore, a key challenge for

the Indian banking sector.

6) Government Ownership: At present, the

Government is the owner of about three-

fourths of the total assets in the banking

system. On the ownership issues, proponents

of private sector banks advocate that

Government should reduce its ownership

stake in the public sector banks as private

sector banks score over public sector banks

in profitability and efficiency. However,

broadly over the years, the performance of

public sector banks has converged with that

of new private sector banks and foreign

banks.

7) Gaps in the Flow of Credit: A high

proportion of socially and economically

underprivileged sections of society in India

is concentrated in the informal economic

activities since more than 60 per cent of

India‘s population lives in rural areas. This

sector holds importance due to growing inter

linkages between informal and formal

economic activities. Available data indicate

that the cooperatives, commercial banks,

and other formal financial sector programs

in rural areas have not displaced informal

sources of credit altogether as 43 per cent of

rural households continue to rely on

informal finance in 2002, when the last All

India Debt and Investment Survey was

undertaken.

8) Other Challenges:-

a) Customer awareness and satisfaction

b) Development of skill of bank personnel

c) Changing needs of customers

d) Coping with regulatory reforms

e) Keeping space with technology up

gradation

f) Man power planning

g) Lack of common technology standards

for mobile banking

h) Sustaining healthy bottom lines and

increasing shareholders value

i) Corporate governance

PERSPECTIVES BEFORE BANKING

SECTOR

The main opportunities that is

perspectives before banking sector is as

under :

1) Internet Banking: - It is clear that online

finance will pick up and there will be

increasing convergence in terms of product

offerings banking services, share trading,

insurance, loans, based on the data

warehousing and data mining technologies.

Anytime anywhere banking will become

common and will have to upscale, such up

scaling could include banks launching

separate internet banking services apart from

traditional banking services.

2) Offering various Channels: - Banks can

offer so many channels to access their

banking and other services such as ATM,

Local branches, Telephone/mobile banking,

video banking etc. to increase the banking

business.

3) Rural area customers: - Contributing to

70% of the total population in India is a




largely untapped market for banking sector.

In all urban areas banking services has

entered but only few big villages have the

banks entered. So the banks must reach in

remaining all villages because majority of

Indian still live in rural areas.

4) Retail Lending: - Recently banks have

adopted customer segmentation which has

helped in customizing their product folios

well. Thus retail lending has become a focus

area particularly in respect of financing of

consumer durables, housing, automobiles

etc., Retail lending has also helped in risks

dispersal and in enhancing the earnings of

banks with better recovery rates.

5) Indian Customers: - The biggest

opportunity for the Indian banking sector

today is the Indian customer‘s. The Indian

customers now seek to fulfill his lifestyle

aspirations at a younger age with an optimal

combination of equity and debt to finance

consumption and asset creation. He

represents across societies, towns and

villages i.e. in rural areas. Consumer goods

companies are already tapping this potential

it is for the banks to make the most of the

opportunity to deliver solutions to this

market.

6) Good Customer Services: - Good

customer services are the best brand

ambassador for any bank for growing its

business. Every engagement with customer

is an opportunity to develop a customer faith

in the bank. While increasing competition

customer services has become the backbone

for judging the performance of banks.

7) Other Opportunities: - There are many

other opportunities in future in the field of

Indian banking sector e.g. to enter new

business and new markets, to develop new

ways of working, to improve efficiency, to

deliver high level of customer services.

CONCLUSION

The banks are expected to play a

very useful role in the economic

development and the emerging market will

provide ample business opportunities to

harness. Human Resources Management is

assuming to be of greater importance. As

banking in India will become more and

more knowledge supported, human capital

will emerge as the finest assets of the

banking system. Ultimately banking is

people and not just figures.

The banking sector in India is

progressing with the increased growth in

customer base, due to the newly improved

and innovative facilities offered by banks.

The banking today is re-defined and re-

engineered with the use of Information

Technology and it is sure that the future of

banking will offer more sophisticated

services to the customers with the

continuous product and process innovations.

Thus, there is a paradigm shift from the

seller's market to buyer's market in the

industry and finally it affected at the bankers

level to change their approach from

"conventional banking to convenience

banking" and "mass banking to class

banking". The shift has also increased the

degree of accessibility of a common man.

REFERENCES 1. S.B. Verma ; E- Banking and

Development of Banks, Deep & Deep

Publications, New Delhi ,2008

2. Kamlesh Bajaj & Dehjaji ; E-

Commerce,Tata McGraw hill

publications Co. Ltd., New Delhi,2005

3. Uppal, R.K. 2007. ‗Banking services and

IT‘ New century publications, New

Delhi

4. Niti Bhasin, 2007. ―Banking

development in India 1947 to2007‖,

Century publication, Delhi 110005.

5. www.indiatoday.com

6. www.wikiepedia.com

7. www.moneyindia.com

8. www.icicibank.com

9. www.rbi.org.in

http://www.moneyindia.com/




HIGHER EDUCATION: NEED OF QUALITY IMPROVEMENT

DR. S. D. TAKALKAR

Head: Department of Commerce,,


Tal: Junnar, Dist: Pune, Pin: 410504, Maharashtra, India.

Abstract

The responsibility of institution of higher education in the context of the changing

scenario is not only confined to imparting education but also to forecast the future needs of

economy. Education is central to the human capital development and economic development

of any country. Even for India, where only 12% of the addressable population goes to college

and nearly 70% of the population is in rural areas, education is considered a very important

channel for socioeconomic mobility. Unfortunately, despite huge demand and need of

education, policy framework in India has stifled access quality and innovation in education.

Skills and knowledge are the driving forces of economic growth and social development of

every nation. Their relevance and importance has amplified with the increasing pace of

globalization and technological changes all over the world. Countries with higher and better

levels of skills adjust more effectively to the challenges and opportunities of globalization.

Many traditional Universities in India still are with their bad old recruitment, looking

State funding indifferent to self financing courses, outdated examination to self financing

courses, outdated examination system, obsolete teaching methods low standards. Time has

ripped and reaching 2005 years, that foreign Universities are entering into India soil for

competitiveness. By all manses, very shortly, new twist and turns would be seen in higher

education system. Education is an important index of human development. Among various

levels of education, higher education has a influential impact on development.

Keywords – Higher Education, Commerce Education, Higher Education Sector, Economic

Development.

INTRODUCTION

Education is an important index of

human development. Among various levels

of education, higher education has a

influential impact on development. Higher

education empowers the individual with

necessary skills and competence for

achieving important personal and social

goals. Higher education is indeed a vital tool

for intellectual and cultural developments

and a mean for achieving wider social

aspirations. Revolutions in information

technology have brought new challenges of

higher education.

The responsibility of institution of

higher education in the context of the

changing scenario is not only confined to

imparting education but also to forecast the

future needs of economy. Education is

central to the human capital development

and economic development of any country.

Even for India, where only 12% of the

addressable population goes to college and

nearly 70% of the population is in rural

areas, education is considered a very

important channel for socioeconomic

mobility. Unfortunately, despite huge

demand and need of education, policy

framework in India has stifled access quality

and innovation in education.

Skills and knowledge are the driving

forces of economic growth and social

development of every nation. Their

relevance and importance has amplified with

the increasing pace of globalization and

technological changes all over the world.

Countries with higher and better levels of

skills adjust more effectively to the

challenges and opportunities of

globalization.

As India progressively moves

towards becoming a ―knowledge-based‖




economy, it becomes increasingly important

that it focuses on advancement of skills and

these skills have to be relevant to the

emerging economic environment. Earlier

skill development largely meant

development of shop floor or manual skills.

Even in this area there are major

deficiencies in our workforce which need to

be rectified.

CONCEPTUAL BACKGROUND

It is useful at this stage to briefly lay

out the structure of the higher education

system in India. There are several types of

higher education institutions in India, viz.

universities, deemed to be universities,

colleges, institutions of national importance,

post-graduate institutions for estimates.

Universities can be set up by an act of the

Parliament or by the State Legislature. Only

universities and deemed to be universities

and the institutions of national importance

are generally authorized to grant degrees.

Other post-graduate institutions and

polytechnics that are recognized by the All

India Council of Technical Education

(AICTE) can grant post graduate diplomas

and diplomas. Detailed information on the

structure, regulatory institutions, courses and

processes of admissions in the Indian

educational system is provided. In what

follows, we highlight a few key features of

the higher education system.

In the new knowledge economy the

skill sets can range from professional,

conceptual, managerial, operational

behavioural to interpersonal and inter-

domain skills. In the 21st century as science

progresses towards a better understanding of

the miniscule, that is, genes, particles, bits

and bytes and neurons, knowledge domains

and skill domains also multiply and become

more and more complex. We provide a brief

but comprehensive overview of linkages

between higher education and the high tech

sector and study the major linkages in India.

We find that the links outside of the labor

market are weak. This is attributed to a

regulatory structure that separates research

from the university and discourages good

faculty from joining, which erodes the

quality of the intellectual capital necessary

to generate new knowledge. In the labor

market, we find a robust link between higher

education and high-tech industry, but despite

a strong private sector supply response to

the growth of the high-tech industry, the

quality leaves much to be desired. Poor

university governance may be limiting both

labor market and non-labor market linkages.

Industry efforts to improve the quality of

graduates are promising but over reliance on

industry risks compromising workforce

flexibility. Addressing the governance

failures in higher education is necessary to

strengthen the links between higher

education and high tech industry.

OBJECTIVES OF THE STUDY

The present study was carried out

with following objectives in view.

1. To study the role of Higher Education in

the new age of globalization.

2. To study the opportunities for Higher

Education in the need for quality

improvement.

3. To suggest the strategic measures for

improvement of quality in Higher

Education.


For the present research study the

data pertaining to the above objectives was

collected and reviewed the literature on the

topic concerned. The literature was thus

collected by visiting various libraries. Some

Government offices were also visited for

getting office record and statistical data. The

secondary data is also collected from various

websites.

With the above objectives keep in

mind the instructed Interview Method and

Desk Research Method was basically

adopted. The Secondary Data is collected

from various reference books related to

Higher Education, Commerce Education,

Higher Education Sector, Commerce &

Management, and Marketing & Finance etc.

For said research study secondary data is

also collected from the National and

International Research Journals which are

related to Commerce, Management,

Marketing and Higher Education.




HYPOTHESIS OF THE STUDY

The Hypothesis of present research

study is as under :

H1 Higher education empowers the

individual with necessary skills and

competence for achieving important

personal and social goals.

H2 Recently Business, commerce education

and research are interrelated terms which

includes Finance, Marketing.

Accounting, Human Resource

Management, Entrepreneurship

Development, commercial & business

law etc.

H3 Commerce is the strongest and most

influential social institution in all

societies these days.

GATS AND HIGHER EDUCATION

GATS provides an international as

well as multilaterally accepted legal frame

work for the promotion of liberalization of

trade in services. Trade in services has been

defined under the GATS in term of four

modes of delivery viz.

Cross border supply.

Consumption abroad.

Commercial presence

Movement of natural persons

The aim GATS is to enable free

trade in services, open markets and facilitate

economic growth. As regards Higher

Education, it aims at removing restrictions

on market access and barriers to

competition.

The five sector in education covered

by GATS are primary education secondary

education, higher education, adult education

and other education Government can make

commitment for one area, several all or none

of them.

The scope of GATS was kept limited

to trade but now has entered the educational

field. Trade in educational services takes

place mainly through students (the consumer

education).

GATS and globalization has also

resulted in the beginning of the distance

revolution in higher education. GATS are

designed to increase trade liberalization

internationally and include education as a

service sector. The objective of GATS is to

liberalize trade in services as quickly as

possible.

Major changes in conditions

affecting the context of higher education

give GATS potentially critical role in higher

education around the world. These ares-

Globalization

Improvement in Information technology

and communication

Increased completion in higher

education.

OPPORTUNITIES FOR HIGHER

EDUCATION

1. Improvement in the rate of enrolment in

higher education: In India the enrolment

in higher education is just 6% of the

relevant age group as against 50%

reached by developed countries. The

economy will experience an increased

rate of enrolment due to increase in the

number of seats supplied by new

entrants in education.

2. Improved resource allocation but it

could manage to allocate only 3.5% of

GNP due to resources crunch. Entry of

private sector will enhance the future

well being of H.E. which is crucial in the

context of Governmental financial

austerity.

3. Qualitative education programmes :

many educational institutions are

excessively dependent upon Govt. grants

and hence they are forced to function in

a rigid structure taking non cognizance

of changing times and demands. With

GATS institutions may venture out of

these controls and provide new

qualitative and competitive education

programs fine-tuned to the changing

times.

4. Scope for development of faculty

performance : Many educational

institutions are non performance or

withdrawal of subsidy due to paucity of

funds such institutions may disappear

and give rise to new education systems

which will emphasize on self evaluation,

introspection and improved faculty

performance.




5. Cost-effective education programs : One

of the modes of supply of education

under GATS is commercial presence i.e.

entry of foreign institutions in the

domestic market. This will make

transnational education more cost

effective for students who would

otherwise have gone abroad Expenses on

education abroad are saved by making it

available locally also the cumbersome

visa and immigration process can be

avoided.

6. Qualitative teaching-learning material :

The fourth mode of supply under GATS

(Distance learning, Open and Virtual

Universities will enhance the use of

modern communication technology and

provide global open access to anyone,

anywhere and anytime.

STRATEGIC DIMENSIONS FOR

QUALITY IMPROVEMENT

Economic globalization and

liberalization can be achieved if Indian

educational institutions give due attention on

enhancement of skills and up gradation of

knowledge in order to match the human

resources to the nee of the new international

scenario where employment opportunities of

quality improvement which needs the

attention of stakeholders of higher education

for the success.

1. infrastructure facilities should be

improved with updated international

standard having internet, automated

telephone, payment of fees by credit

cards, sufficient class rooms and sports

facilities etc.

2. The economy of a country depends upon

the utility of the educated man power in

the global context. The kingpins of an

institution are its teachers. They would

be expected to be more alert and

sensitive to the needs and aspiration of

the students and the society.

3. Better transparency and accountability

may cause self-appraisal and

improvement in faculty performance.

4. Appointment of super specialized

teachers in educational institutions with

reasonable remuneration should be

followed.

5. Training the teachers and by conduction

orientation courses with a view to adapt

to new changes as the market demands.

6. There should be continuous assessment

and counselling. Special attention should

be paid on counselling to guide the face

the challenges in their life.

7. Teachers should frame the curriculum

with new knowledge with the help of

interdisciplinary interactions. It should

be based on societal needs and market

demands.

8. Due emphasis to the learning process

than teaching process through students

participation is needed.

9. Creation capacity for research and

enquiry in colleges should have the

highest priority. Research oriented

curriculum should be improved. Project

works would be feasible method of

initiating the students thinking and

introducing them to reality.

10. Application oriented research must be

encouraged Institutions should

encourage the teachers to undertake

research projects and consultancy

services.

11. Making consultation with industries for

services must be followed. Visits to

centers of excellence with better

infrastructure and professional talks.\

12. Creating capacity for entrepreneurial and

innovative skill must be one of the

objectives of education. Many

entrepreneurship courses should be

started in the educational institutions.

13. Working library and active network

facilities should be improved in the

institutions.

14. Developing a harmonious and integrated

personality would just not be possible if

system does not inculcate values of

culture, heritage and traditions. Indian

heritage, culture and values need to be

thoroughly studied, analyzed and

incorporated comprehensively in the

educational system right from the initial

stage to higher dimensions of education.




15. Yogic meditation has stood the test of

science and medical experiments. It will

provide an insight for character

development and spiritual direction.

CONCLUSION

Liberation has opened the gates of

education market for meeting

competitiveness, challenges and change. In

the wind of globalization, the student is

searching for quality education to enter into

global job market, whereas Institutions,

teacher, administrative is not yet geared up

to plug off the gap. Many traditional

Universities in India still are with their bad

old recruitment, looking State funding

indifferent to self financing courses,

outdated examination to self financing

courses, outdated examination system,

obsolete teaching methods low standards.

Time has ripped and reaching 2005 years,

that foreign Universities are entering into

India soil for competitiveness. By all

manses, very shortly, new twist and turns

would be seen in higher education system.

Education is an important index of human

development. Among various levels of

education, higher education has a influential

impact on development. Higher education

empowers the individual with necessary

skills and competence for achieving

important personal and social goals. Higher

education is indeed a vital tool for

intellectual and cultural developments and a

mean for achieving wider social aspirations.

Revolution in information technology has

brought new challenges of higher education.

REFERENCES

1. H. Ashok Chandra Prasad and S. George

(ed) EXIM Dynamics Services and

WTO-An Indian Perspective, Common

Wealth Publishers, New Delhi, 1996.

2. Chauhan, C.P.S, Hr. Education in India :

Challenges of Global Trends, University

News, 40(17) April 209-May 05 2002.

3. Prof Sunil Kumar Gupta. a lecture

delivered by the Professor al I he Silver

Jubilee Celebration held at Senate Hall,

ML1 Canchipur on May 10. 2010.

4. Elizabeth Goldsmith and Sue L.T.

McGregor(2QQO); E-commerce:

consumer protection issues and

implications for research and education;

J Consumer Studies & Home

Economics; Vol.24, No.2, June 2000,

pp. 124-127.

5. R.C.T.Cheung, New Challenges in

Commerce Education, Department of

Computing, Hong Kong Polytechnic

University.

6. Dr. Kishor Moharir, Higher Education In

Commerce-Challenges And

Opportunities, Sardar Patel College,

Chandrapur, Volume No.1, Issue No.9

Issn 2277-1166.

7. Munesh Kumar, Hr. Education in India

and Emerging Trends, University News,

42(15) April, 12-18, 2004.

8. A. Ranga Reddy, Higher Needs Speedy

Reforms, University News, 42(17)

April-26 May-02, 2004.

9. Bharat E. Sant, Private Participation in

Indian Higher Education Towards

Excellence in Teaching & Learning,

University News 42(07) Feb. 16-22,

2004.

10. Chalam K.S. (2003) Introduction to

Educational Planning & Management,

Amol Publishers, New Delhi.

11. www.lsn.curtin.edu.au

12. www.epw.org.in

13. www.ingentaconnect.com

http://www.lsn.curtin.edu.au/

http://www.epw.org.in/




ENTREPRENEURSHIP DEVELOPMENT: A CRITICAL ANALYSIS

PROF. SANTOSH RAM PAGARE

Head, Dept. of Commerce,

K. J. Somaiya College, Kopargaon, Maharashtra.

Abstract

The problem of unemployment has become a major concern to the government. The

pool of unemployed youths is continousily increasing day in day out. The pool consists youths

of different levels of education: form four leavers, diploma holders and even university

graduates. The empowerment of the youths with the self sustaining skills can be of great

importance to the government in its efforts to contain youth unemployment. Besides, when

people are working it helps to reduce the evils of idleness such crimes and drug abuse. This

stems from the fact that majority of the people especially the youths are in the rural areas.

The training of the entrepreneurial skills and competencies to the youths can tame the

rampant movement of the youths to the urban centers to seek for employment. This is a form

of human resource development which come seems to be neglected or not to have received

full attention from the different stakeholders. Therefore, efforts to enhance this important

source of human resource development should be supported so as to realize the full benefits.

This study was motivated by the need to know whether entrepreneurial training on the

youths has been done and determine factors which influence entrepreneurial flair among the

micro businesses. The study used descriptive research design and the population of interest

was the district officers in the ministry of youth affairs. The survey was done using

questionnaires distributed using drop and pick method.

The findings of this research reflected how advancement in entrepreneurship can be

used to curb the problem of unemployment. Moreover, Technological change, scanty market

information, Lack of managerial training and experience, inadequate education and skills,

Lack of credit, Poor national policy and regulatory environment were found to be major

problems facing youth entrepreneurship. The training of entrepreneurial skills to the youths

has been done by various districts. The findings indicate that training the youths on

entrepreneurial skills is paramount and an important step reducing unemployment and

enhancing the lives of the youths as they become self reliant. This has the overall effect of

improving the economic welfare of the people at large.

Keywords: Entrepreneurship; human resource; development

Introduction

Entrepreneurship and development

go together. Learning to think like an

entrepreneur, whether its ones own

business or work for an organization, is a

critical skill successful business. When

one think like an entrepreneur/owner, then

everyone benefits. Employee or

entrepreneur benefits from taking charge

of business career development. Thinking

like an entrepreneur forces one to look for

niches and opportunities previously

overlooked. By far the greatest benefit is

that it forces one to be self-driven and that

can only be good for business career.

Entrepreneurs need to have a mix of skills

at hand: knowledge of marketing,

leadership, basic finance, operations, talent

management, business management,

technology and other skills. They need to

have these skills since initially their

companies usually consist of 1 or 2

employees and they do not have the luxury

of having specialists. Learning enough of

these skills will give them an advantage.

However, entrepreneurs do not need to be

experts in all of these areas. They just need

to have a basic knowledge and be able to

see an opportunity from all angles so that

they can have an overall picture. That is




why entrepreneurship and development go

together. An entrepreneur‘s mindset is a

great advantage in business. An employer

also benefits from having an employee

who is fully invested in the business.

Youth unemployment also has a social

cost in terms of indirect health costs, illicit

activities which lead to increased

insecurity especially in urban areas. This

has led to the introduction of

entrepreneurship education and training to

develop entrepreneurial skills among

graduates from vocational and technical

training institutions, and even among

university graduates.

Development of entrepreneurship

education and training

The government should also ensure

that important sectors of the economy such

as agricultural and industrial sectors are

well managed to support the self employed

in the informal sector to promote

entrepreneurial spirit. The increased trend

of using vocational and technical training

institutions for entrepreneurial skills

development is due to strong government

belief that entrepreneurship can indeed be

taught. This calls for a systematic build up

of knowledge to make entrepreneurship a

rich and valid curriculum.

Statement of the problem

Most of the developing countries

are facing the problem of unemployment.

This affects mostly the youths especially

university graduates who lack employment

after graduating ,they remain

unemployment and fail to contribute

positively towards economic development

of the economy .This represents a pool of

unutilized human resources. The

despondence of the matter makes the

youths to be easily lured into unorthodox

ways of earning their livelihood. On the

other hand the government has tried to

tame this economic evil. Government has

for example showed their committal into

the matter by promising to create 500, 000

new jobs for each year. The statistical facts

however, have demonstrated how far the

battle on the issue is from being won. This

move supported by international bodies,

national associations and other

stakeholders of the small enterprises may

yield promising results of reduced levels

of unemployment and thus alleviating

poverty considerably. The recent move by

the government to introduce the

entrepreneurship development fund is a

milestone in luring the youths to engage in

self employment. This however calls for

support from each and every stakeholder.

Since, the move is a long term strategy,

new measures should be put in place so as

to enhance the success of the initiative. In

addition, the government should be on the

forefront in developing ways of nurturing

the entrepreneurial culture. Different

approaches may be pursued to achieve this

very instrumental tool of economic

development. Usually, majority of the

people enter into business or other forms

of self employment after their anticipated

formal employment chances are doomed.

Research has shown that most of the

successful entrepreneurs got some training

before joining or undergo training as they

progress with their business. This is

because every business has its own tenets

of working different from that of the other

business its important that one becomes

acquainted with them for efficiency in

operation. Therefore, those who receive no

training mostly lack these facets. Further,

the business environment is very dynamic

and requires constant changes of the

approaches used in doing businesses. This

explains the ideology of having success

rate of new business being only 15% in the

first 5 years.

Management of Entrepreneurship

Development

Perhaps the government should

consider spreading out the benefits of

entrepreneurship development fund

throughout the country. This can be done

through engaging personnel to run

business development centers where

training can be disseminated and business

development services provided. This

means that part of the funds should




inevitably be used in promoting

entrepreneurship and business training if

the funding is going to achieve the desired

objectives.

A National board of trustees should be

charged with management of the fund

whereas applications should be handled at

the business development centers. The

experiences of the Ministry of Agriculture

with its agricultural extension officers and

probably that of Agricultural Development

Corporation should form a good guide on

the way forward, regarding adoption of the

business development centers. The centers

will not only enhance continued

monitoring and provision of assistance to

new entrepreneurs but also facilitate

disbursements of the funds across the

board. This approach has worked

successfully in Eastern European

Countries, which were

formally under communism but chose to

develop their countries through small and

medium enterprises (SMEs) after the

collapse of communism.

Challenges facing youth

entrepreneurship

1. Lack of Managerial Training and

Experience - Many youth

entrepreneurs lack managerial training

and experience. They develop their

own approach to management, through

a process of trial and error. As a result,

their management style is likely to be

more intuitive than analytical, more

concerned with day-to-day operations

than long-term issues, and more

opportunistic than strategic in its

concept (Hill, 1987). Although this

attitude is the key strength at the start-

up stage of the enterprise because it

provides the creativity needed, it may

present problems when complex

decisions have to be made. A

consequence of poor managerial ability

is that young entrepreneurs are ill

prepared to face changes in the

business environment and to plan

appropriate changes in technology.

Majority of the youths who run small

businesses are ordinary lot whose

educational background is lacking.

Hence they may not be well equipped

to carry out managerial routines for

their enterprises (King and McGrath,

2002).

2. Inadequate Education and Skills -

Education and skills are needed to run

even small businesses. Research shows

that majority of the lot carrying out

their businesses are not quite well

equipped in terms of education and

skills. Study suggests that those with

more education and training are more

likely to be successful in their

businesses (King and McGrath, 2002).

As such, for small businesses to do

well, people need to be well informed

in terms of skills and management.

Small businesses in ICT appear to be

doing well with the sprouting of many

commercial colleges offering various

computer applications. Further, studies

show that most of those running small

and medium businesses in this sector

have at least attained college level

education (Wanjohi and Mugure,

2008).

3. Lack of Credit - In developing

countries, young entrepreneurs have

great difficulty in obtaining the

necessary financial resources to

effectively scale up and grow their

businesses (Roberto, 2008). Lack of

access to credit is almost universally

indicated as a key problem for young

entrepreneurs. This affects technology

choice by limiting the number of

alternatives that can be considered.

Many young entrepreneurs may use an

inappropriate technology because it is

the only one they can afford. In some

cases, even where credit is available,

the entrepreneur may lack freedom of

choice because the lending conditions

may force the purchase of heavy,

immovable equipment that can serve as

collateral for the loan. Credit

constraints operate in variety of ways

where undeveloped capital market




forces entrepreneurs to rely on self-

financing or borrowing from friends or

relatives. Lack of access to long-term

credit for young entrepreneurs forces

them to rely on high cost short term

finance. There are various other

financial challenges that face young

entrepreneurs. They include the high

cost of credit, high bank charges and

fees.

4. National Policy and Regulatory

Environment - The national policy

and regulatory environment has an

important impact on technology

decisions at the enterprise level. The

structural adjustment programs (SAPs)

implemented in many countries are

aimed at removing heavy policy

distortions, which have been viewed as

detrimental to the growth of the private

sector. SAPs tend to severely affect

vulnerable groups in the short run and

have been associated with the

worsening living conditions in many

countries (USAID, 1991). The findings

in a study by Wanjohi and Mugure

(2008) indicate that business

environment is among the key factor

that affects the growth of small

enterprises. Unpredictable government

policies coupled with ‗grand

corruption,‘ high taxation rates, all

continue to pose great threat, not only

to the sustainability of small businesses

but also to the economy that was

gaining momentum after decades of

wastage. In theory, structural

adjustment and trade liberalizations

were supposed to bring benefits to

micro and small enterprises. However,

there is evidence across the world of

both negative and positive impacts of

these policies on small and medium

businesses development. It can perhaps

be said as a generalization that those

with better skills and knowledge, and

located in strong market niches, have

benefited. On the other hand, those

faced with low barriers to entry have

seen a saturation of markets and

growing poverty. The legal and

economic framework in which

enterprises operate is crucial to their

performance. In the literature on

enterprise development, it has been

argued very forcefully that the legal

framework of many countries serves as

a barrier against enterprise.

5. Technological Change - Change of

technology has posed a great challenge

to small businesses. Since the mid-

1990s there has been a growing

concern about the impact of

technological change on the work of

micro and small enterprises which are

majorly owned by young

entrepreneurs. Even with change in

technology, many small business

entrepreneurs appear to be unfamiliar

with new technologies. Those who

seem to be well positioned, they are

most often unaware of this technology

and if they know, it is not either locally

available or not affordable or not

situated to local conditions. Foreign

firms still remain in the forefront in

accessing the new technologies.

6. Human resource development -

Human resource development has been

defined by as a continuing, dynamic

and empowering process. The growth

of a human being pertains a myriad of

factors. These factors affect the

cognitive abilities, spiritual and

physical aspects of people. Form the

above broad definition, it can be seen

that the strengths and weaknesses of

people and their abilities can be

identified. Today, a well defined

system of organization in the world of

industry and business has to be

established. Law of performance which

forms the key of production objects is

one of the major items the top

management of firms has realized. The

product of the available abilities and

motivation yields high performance

and labor force is the life sustaining

organ of production. The desire for

long life of the firms has made the top




managers to devise some holistic

programs which seek to develop

emotions, spirits, body and mind.

These programs therefore will go

beyond the technical assistant to more

professional and comprehensive

development of the labor force For a

business to operate, some resources are

indispensible like the finances, but the

development of labor force is

important too. This is because the

workforce is what translates raw

materials into finished goods

(production). HR deals with the

personnel and is very important

component of production for many

industries as it is very flexible. The

workers could be inventors. Hence,

they can manipulate the environment

in which they operate. They can invent

new thingsor ideas on what to do and

how to do it unlike the other resources

like the computers and the machines

which rely on a predetermined or set

systems. The personnel can preplan or

preset some tasks and also bring in

more innovations to the existing

systems of operation. They are more

idiosyncratic and highly sensitive.

They, have certain rights, notions and

dignity which should be respected.

They have aspiration to live in better

and satisfied lives. Their management

is dynamical and changing. They can

do some things which are

unpredictable.

References

1. Burgess, S. (2001) (Eds),Managing

Information Technology in Small

Businesses: Challenges and Solutions,

Idea Group Publisher, Hershey, PA, .

2. Corbitt, B.J. (2000), "Developing

intraoganizational electronic

commerce strategy: an ethnographic

study", Journal of Information

Technology, Vol. 15 pp.119-30.

3. Cragg, P.B., King, M. (1993), "Small-

firm computing: motivators and

inhibitors", MIS Quarterly, Vol. 17

No.2, pp.47-59.

4. Hill, T. (1987). Small business

production/operations management.

Macmillan Education Ltd.

5. King, K. and McGrath, S. (2002).

Globalization, Enterprise and

Knowledge. Symposium, Oxford.

6. Kinyanjui, M. (2000). Tapping

opportunities in enterprise clusters in

Kenya: the case of enterprises in

Ziwani and Kigandaini. Working Paper

525, Institute for Development Studies,

University of Nairobi, Nairobi Kenya.

7. Lange, T., Ottens, M., Taylor, A.

(2000), "SMEs and barriers to skills

development: a Scottish perspective",

Journal of European Industrial

Training, Vol. 24 No.1, pp.5-11.




ROLE OF MOBILE BANKING IN THE PRESENT ERA

DR. MUNDE SANJEEVANI DASHRATHRAO

Asst.Prof.in Commerce, Department of Commerce,

KSGM College Dharmapuri, Taq-Parali(V), Dist-Beed, Maharashtra.

Abstract

Mobile banking is a revolution that is driven by the world‟s one of the fastest growing

sectors – mobile communication technology. This study explores the issues in mobile

banking. With electronic banking, users can now conveniently carry out banking

transactions, but this convenience cannot be achieved if the user does not have access to the

internet, hence, in other words, the user cannot carry out a banking transaction while waiting

for a bus, or perhaps while having lunch in a restaurant. With m-banking, convenience can

be achieved 24hrs a day. This is because a user has access to his mobile phone all day, at all

times. So, to effectively achieve a truly convenient banking mode, a truly mobile mode of

banking has to be explored, hence the need for m-banking. In the broader sense mobile

banking is that type of execution of financial services in the course of which - within an

electronic procedure - the customer uses mobile communication techniques in conjunction

with mobile devices. Mobile Banking can be said to consist of three inter-related concepts

viz. Mobile Accounting, Mobile Brokerage and Mobile Financial Information. Mobile

Banking is an emerging alternate channel for providing banking services. India is the second

largest telecom market in the world, which is having high potential for expanding banking

services using mobile. In recent times, the Banking Sector has been making rapid straights by

using information technology as a platform. An attempt has been made in this paper to

examine various innovative instruments that have been introduced by Banks in recent times

among that mobile banking is one instrument and also explains about what are the recent

trends in mobile banking.

INTRODUCTION

The terms Mobile Phone banking and

mobile banking (MBanking) are used

interchangeably. The term M-Banking is

used to denote the access to banking services

and facilities offered by financial institutions

such as account-based savings, payment

transactions and other products by use of an

electronic mobile device. Mobile banking

has yielded a multiple effect on the number

of solutions available to clients. This is in

addition to more efficient transactional

environment and the high substitution of

banking points. In the broader sense mobile

banking is that type of execution of financial

services in the course of which - within an

electronic procedure – the customer uses

mobile communication techniques in

conjunction with mobile devices. Mobile

Banking can be said to consist of three inter-

related concepts viz. Mobile Accounting,

Mobile Brokerage and Mobile Financial

Information. Mobile Accounting is

sometimes characterized as transaction-

based banking services that revolve around a

bank account and are availed using mobile

devices. Not all Mobile Accounting services

are however necessarily transaction- based.

Whereas Mobile Brokerage, in context of

banking services, refers to intermediary

services related to the bourse, e.g. selling

and purchasing of stocks.

TRENDS IN MOBILE BANKING

1. The advent of the Internet has

revolutionized the way the financial services

industry conducts business, empowering

organizations with new business models and

new ways to offer 24 hour accessibility to

their customers.

2. The ability to offer financial transactions

online has also created new players in the

financial services industry, such as online




banks, online brokers and wealth managers

who offer personalized services, although

such players still account for a tiny

percentage of the industry.

3. Over the last few years, the mobile and

wireless market has been one of the fastest

growing markets in the world and it is still

growing at a rapid pace. According to the

GSM Association and Ovum, the number of

mobile subscribers exceeded 2 billion in

September 2005, and now exceeds 2.5

billion (of which more than 2 billion are

GSM).

4. Mobile devices, especially smart phones,

are the most promising way to reach the

masses and to create ―stickiness‖ among

current customers, due to their ability to

provide services anytime, anywhere, high

rate of penetration and potential to grow.

According to Gartner, shipment of smart

phones is growing fast, and should top

20million units (of over 800 million sold) in

2006 alone.

5. As the trend is shifting to mobile banking,

there is a challenge for CIOs and CTOs of

these banks to decide on how to leverage

their investment in internet banking and

offer mobile banking, in the shortest possible

time.

6. The proliferation of the 3G (third

generation of wireless) and widespread

implementation expected for 2007– 2013

will generate the development of more

sophisticated services such as multimedia

and links to m-commerce services.

MOBILE BANKING IN INDIA

In India, traditional branch-based

banking remains the most widely adopted

method of conducting banking transaction, at

the same time commercial banks are

undergoing a rapid change majorly driven by

the information & telecommunication (ITC)

technology. ICICI bank pioneered in mobile

banking services in India. Among public

banks, Union Bank of India was first to

introduce mobile banking (2010). Today

many commercial banks have launched

mobile banking using ITC technology and

now they can reach out to customers and

provide them with not only general

information about its services but also the

opportunity of performing interactive retail

banking transactions anytime, anywhere.

Some banks in India have started providing

the mobile banking service to their

customers that include State Bank of India

(SBI), Union Bank of India (UBI), Punjab

National Bank (PNB), HDFC, ICICI, Axis

Bank, etc.

MOBILE BANKING IN THE WORLD

Mobile banking is used in many parts

of the world with an exception of remote and

rural areas with little or no infrastructure.

This aspect is also popular in countries

where most of their population is unbanked.

In most of these places, banks can only be

found in big cities, and customers have to

journey hundreds of miles to the nearest

bank. Hence, Numbers of cities have

introduced such kind of services. In Iran,

banks such as Parsian, Tejarat, Mellat,

Saderat, Sepah, Edbi and Bankmelli offer the

service. Banco Industrial provides the

service in Guatemala. Citizens of Mexico

can access mobile banking with Omnilife,

Bancomer and MPower Venture. Kenya‘s

Safaricom has the M-Pesa Service, which is

mainly used to transfer limited amounts of

money, but increasingly used to pay utility

bills as well. In 2009, Zain launched their

own mobile money transfer business, known

as ZAP, in Kenya and other African

countries. In Somalia, the many telecom

companies provide mobile banking, the most

prominent being Hormuud Telecom and its

ZAAD service. Telenor Pakistan has also

launched a mobile banking solution, in

coordination with Taameer Bank, under the

label Easy Paisa, which was begun in Q4

2009.

MAJOR SERVICES IN MOBILE

BANKING

Account information

1. Alerts on account activity or passing of set

thresholds

2. Monitoring of term deposits

3. Access to loan statements

4. Access to card statements

5. Mutual funds / equity statements

6. Insurance policy management




Payments, Deposits, Withdrawals and

Transfers.

1. Cash-in, cash-out transactions on an ATM

2. Domestic and international fund transfers

3. Micro-payment handling

4. Mobile & Direct to Home package

recharging

5. Purchasing tickets for travel and

entertainment

6. Commercial payment processing

7. Bill payment processing

8. Peer to Peer payments (e.g., Pop money,

Isis)

9. Withdrawal at banking agent

10. Deposit at banking agent

ISSUES AND CHALLENGES IN

MOBILE BANKING

The rapid technology development in

Mobile technology like 2G, 3G, 4G has

become major challenges for banks. It is

visible that the bank which started Mobile

Banking in the form of SMS banking, then

adopted application (software) of Smart

phones, mobile operating system and Mobile

Apps posed the banks to adopt the current

technology. The customers are mostly using

ATM and online banking services. Most of

the customers feel comfortable without

mobile banking. They also feel, there are

chances of misuse in mobile banking due to

mobile handset theft.

MOBILE BANKING FUTURE

FUNCTIONALITIES

Based on the ‗International Review

of Business Research Papers‘ from World

business Institute, Australia, following are

the key functional trends possible in world

of Mobile Banking. With the advent of

technology and increasing use of smartphone

and tablet based devices, the use of Mobile

Banking functionality would enable

customer connect across entire customer life

cycle much comprehensively than before.

With this scenario, current mobile banking

objectives of say building relationships,

reducing cost, achieving new revenue stream

will transform to enable new objectives

targeting higher level goals such as building

brand of the banking organization.

CONCLUSIONS

1. Though M- banking seems to cut across

all groups, usage is more pronounced

among youngsters.

2. With the help of mobile banking users

can send money using their phone to any

other customer in the country, deposits

and withdrawals in less time.

3. According to the country Mobile

banking provides financial services,

including solutions facilitating savings

and insurance.

4. Mobile Banking facilitates payments,

giving users a way to pay their bills and

to pay for goods at shops that accept

Orange Money electronically without

cash.

5. Mobile Banking, as has been

demonstrated, has gained non-negligible

relevance for banks today. Developments

in the banking sector, e.g. increased

competition on account of technological

developments coupled with the process

of globalization have produced new

challenges for banks. Its main

contribution, however, can be expected

to take place in the strategic field as it is

all set to become an instrument of

differentiation.

6. Mobile Banking seems to possess the

potential to become one of the widely

spread and accepted application in the

field of Mobile Commerce, particularly

in the backdrop of its high acceptance

across commercially important sections

of the society. We may expect to see

Mobile Banking go into the footsteps of

Online Banking, i.e. to become a

standard service offered by every bank

worth its name. Hence, the future for

banking sector is going to make rapid

straights in near future.

7. One of the draw back in Mobile Banking

is most of the customers feel comfortable

without mobile banking. They also feel,

there are chances of misuse in mobile

banking due to mobile handset theft.




References

1. Banzal S. (2010), ―Mobile Banking &

M–Commerce and Related Issues‖,

www.public.webfoundation.org/.../25.M

obile_banking_Mcommerce_ 15.03.pdf

[accessed 10 Jul 2010].

2. Uppal R.K., ―Customer Perception of E

– Banking Services of Indian Banks:

Some SurveyEvidence, The ICFAI

Journal of Bank Management, Vol. VII

No.10.

3. Donner, J. (2008). Research approaches

to mobile use in the developing world: A

review ofthe literature. The Information

Society, 24(3), 140-159. |

4. Ivatury, G., & Pickens, M. (2006).

Mobile phone banking and low-income

customers: Evidence from South Africa.

Washington, DC: Consultative group to

assist the poor (CGAP) and the United

Nations Foundation. |

5. Townsend, A. M. (2000). Life in the

real-time city: Mobile telephones and

urban metabolism. | 7. Journal of Urban

Technology, 7(2), 85-104. | 8. Sharma,

Prerna, Bamoriya & Preeti Singh (2011)

- Issues & Challenges in Mobile Banking

In India: A Customer‗s Perspective. |

6. www.bankrate.com/finance/banking/find

ing-best-mobile-banking.aspx.

7. http://www.thejakartapost.com/news/201

2/05/11/commonwealth-bank-tapping-

growing-mobile-banking-market.html. |

8. http://www.newfreeppt.com/banking/mo

bile-banking-ppt-freedownload

http://www.public.webfoundation.org/.../25.Mobile_banking_Mcommerce_

http://www.public.webfoundation.org/.../25.Mobile_banking_Mcommerce_

http://www.bankrate.com/finance/banking/finding-best-mobile-banking.aspx

http://www.bankrate.com/finance/banking/finding-best-mobile-banking.aspx




ELECTRONIC ACCOUNTING SYSTEM

PRIN. D. B. SHINDE

Karmaveer Shantarambapu

Kondaji Wavare, Arts, Science

& Commerce College, Cidco, Nashik

SAVITA KULKARNI-MAIRALPANT

Assistant Professor

Jugul Dist-Belgauam,

Karnataka

Introduction

E-accounting is the application of

online and Internet technologies to the

business accounting function. Similar to e-

mail being an electronic version of

traditional mail, e-accounting is "electronic

enablement" of accounting and accounting

processes which are more traditionally

manual and paper-based. E-accounting

involves performing regular accounting

functions, accounting research and the

accounting training and education through

various computer based /internet based

accounting tools such as: digital tool kits,

various internet resources, international web-

based materials, institute and company

databases which are internet based, web

links, internet based accounting software and

electronic financial spreadsheet tools to

provide efficient decision making.

E-Accounting is new development in

field of accounting. It means all your

transactions will record in online server or

data base. E-accounting involves performing

regular accounting functions, accounting

research and the accounting training and

education through various computer based

internet based accounting tools such as:

digital tool kits, various internet resources.

international web-based materials, institute

and company databases which are internet

based, web links, internet based accounting

software and electronic financial spreadsheet

tools to provide efficient decision making.

An E-accounting system could be thought of

as an inter-organizational system because of

its capability to electronically integrate a set

of firms.

Accounting plays a critical role in the

success or failure of contemporary business

institutions. Accounting systems are

responsible for recording, analyzing,

monitoring and evaluating the financial

condition of companies, preparation of

documents necessary for tax purposes,

providing information support to many other

organizational functions, and so on. Prior to

the advent of personal computers, businesses

were limited to manual methods for keeping

track of financial data.

In many operational applications the

accounting entries can be generated as a by-

product of the underlying transactions. A

computerized accounting system is able to

handle financial data efficiently, but the true

value of an accounting system was that it

was able to generate immediate reports

regarding the company.

Conceptual Background

Electronic accounting can be defined

as " to follow internal and external

operational events as well as to document,

record, archive, summarize those events, and

to present summary information to the

vested interest groups in an electronic

environment". It is possible to analyse the

electronic accounting concept in three

categories, such as e-taxing, e-banking, and

pre accounting practices. In e-taxing

practice, transactions such as preparation of

tax returns, imputation of taxes, and

following tax-related debt and other relevant

information occur in an electronic

environment. E-banking practices consist of

enterprises' bank-related transactions that

actually take place in an electronic

environment via internet. E-pre accounting

practices are composed of actions such as

following the transactions conducted

between firms and customers or sellers,

keeping and registering documents, and

preparing financial tables in an electronic

environment and submitting those to related

persons via internet

The concept of quality here refers to

a group of qualities that make it consistent,




and to conform to the specified

specifications, standards and designs. The

purpose of the government e-accounting

information systems is to take part in

improving and strengthening the business in

business organizations, and the quality of

government accounting information systems

influenced by the needs of users of

government accounting information. The

characteristics of government accounting

information are a set of qualitative

characteristics that make government

information useful to information users.

In short E-accounting is these of

internet technologies to. the organizational

accounting purposes: .In this process,

accounting records exist In digital form

Instead of on paper.

It is an accounting information

system, where source records, transaction

and accounting entries are received,

transferred, reported and filed within or

outside the organization electronically.

Objectives of the Research Study

The main objectives of present research

study are as follows-

1. To study the conceptual background of

the term E-Accounting.

2. To study & examine the benefits &

disadvantages of E-Accounting.


The said research study is based on

secondary data. Such secondary data is

collected from various reference books

related to E-Accounting, Financial

Accounting, Corporate Accounting, E-

Auditing, Trade, Commerce, Industry,

Economics, Management.

The secondary data is also collected

from various websites and other related

literature and reviewed it. For the said

research study secondary data is also

collected and reviewed from the various

National and International Research Journals

which are related to E-Accounting & E-

Auditing.

Need of E-Accounting

Normally, every businessman wants

to access or control its financial data or

accounts from anywhere, any time in a

secure environment. If a person is outside

the country or far from his office and his

financial data is in the office or at the

desktop of his computer, than how does he

access the required information? If you

takeout your laptop with yourself than it will

hinder your accountant job. If you take a

copy of your account in any portable device,

it will have to be updated time to time which

is again wastage of time and it may lose or

may become part of another problem. So,

only solution is e- accounting. E-accounting

maintains your financial data in a safe

environment. In this process, you have a

password to access your account and only

those persons who have password can access

the accounts. It means only authorized

persons can access. E-accounting has visited

in India with a rainbow of opportunities.

1. The accounting function receives

attention only when a critical need arises.

No time wastage.

2. Up to date information which is available

in real-time.

3. No need of Hiring/Training accounting

and payroll staffs.

4. No Payroll related costs, FICA, workers

compensation, unemployment,

vacation/sick benefits, health insurance

benefits, and many other expenses.

5. No need to upgrade software and annual

updates from client side.

6. Check and monitor office supplies

(check stock, paper stock, envelopes,

toner)

7. No additional bank charges

8. Cost saving on office space (rent for

additional offices)

Benefits of E-Accounting

Following are the .benefits associated

with the use of E-accounting.

1. No need of in-house bookkeepers'

training and expertise

2. No problems with employee turnover,

vacations, sick leave and absenteeism

3. No communication difficulties between

the accountant and business owner or

organization due to load / work pressure.

4. The business organization concentrates

on the revenue side of business, and




spends as little time as necessary on the

accounting and payroll function.

5. Save time and money.

6. Gain greater control of finances by

moving from paper records to

computerized accounting software.

7. Transactions that affect your bank

account can be sent automatically to the

online accounting application.

8. Send sales invoices and other documents

directly to another business's accounts

for the recipient to approve without

having to reenter the information.

9. E-accounting may improve the

effectiveness of accounting and reporting

tasks, budgeting, controlling and auditing

which may reflect on the organization's

effectiveness as well.

10. Almost all purchases and incomes are

already tracked by your bank accounts

and credit cards. So, instead of re-typing

everything into your desktop accounting

software or spreadsheet you can import

the transactions securely and

automatically.

11. Organization's entire accounting project

can be easily outsourced. Bye-

accounting system.

12. It generates employment opportunities

for software developer and accountants.

13. It reduces cost of accounting or causes

cost saving (related to payroll etc). No

installation cost, no software update

required, and no book keepers required.

14. Most of the websites provide this service

free of cost for example e.g.

www.wavwaccounting.com If

accountant has gone outside the area than

he can deal in accounts from that place

also (e accounting is free from location

and can be accessed from anywhere in

the wor1d at any time).

15. E-accounting helps business to keep their

financial data in safe secure environment

(In case if user computer crashes then

their documents are still safe on the

remote server.

16. Allows multiuser access, hence it saves

time.

17. No need of in-house book keepers.

18. Large storage capacity.

Disadvantages of E-Accounting

1. Data security problem.

2. Speed of broadband connection.

3. Network connectivity problem (internet

dependency).

4. Required ability to use.

5. Fear of losing your customer data base.

6. If you provide information to a machine

or over the internet you can never be sure

it really gets to the right place.

7. Data security - All your data resides on a

remote server: however, a back up can be

taken regularly.

8. Speed - Most of the currently available

online office suites require a high

broadband Internet connection.

9. Lack some features available on the

offline office suites: but this is

progressively becoming available (MS

LIVE, Google online-Suite, Think free,

Zoho Office, Internet Office.Biz and

eDeskOnline)

10. A network connection (usually Internet

access) is required to send and receive

changes. That is, internet dependence

makes it more difficult to work offline.

Conclusion

Due to technological progress, both

the preparation of a document and

arrangement of accounting records have

been carried out in electronic

environment. The fast developments

experienced in information technologies

have impact on all professions as well as the

people carrying out accounting profession.

By means of these developments, benefiting

from the information generated by the

accounting system that has come to a level

that generate extremely various information

in a short-time completely by the

information users and approval of the

reliability of that information by unrelated

third persons are very important. In other

words, electronic accounting practices have

provided saving of time, synchronous, and

comparable presentation of financial

statements become easier. On the other hand,

the electronic audit concept has been brought

forward by carrying out the audit activities




through electronic environment by means of

electronic entries and documents. The study

provides strong evidence that the use of E-

Accounting has contributed to the

effectiveness of tasks as expected. The study

shows that the use of E-Accounting may

improve the effectiveness of accounting and

reporting tasks, budgeting, controlling and

auditing which may reflect on the

organizational effectiveness as well. An

improved quality in the system may provide

better support for the tasks performed by the

system. This study finds that the most

significant impacts of E-Accounting are on

accounting and reporting and budgeting task

performance respectively.

References

1. Dr. Sanjay Kumar and Preeti Jain, What

and Why E-Accounting?, The Economic

Challenger, No-14, Issue-55, April-June-

2012.

2. Suleman, YUKCU and Seckin GONEN,

Fraud Auditing in Electronic Accounting

Practices, African Journal of Business

Management, Vol-6(4), pp.1222-1233,

Feb. 2012.

3. Mohammed Amidu, John Effah and

Joshun Abor, E-Accounting Practices

among Small and Medium Entreprises in

Ghana, Journal of Management Policy

and Practice, Vol-12(4) 2011.

4. Shraddha Verma, E-Accounting:

Problems & Prospects, Financ and

Investment E-Accounting Problems &

Prospects.

5. Hall J. (2007). Accounting Information

systems. Ouebec, Canada: Thomson

Higher Education.

6. Marriott, N. and Marriott, P (2000),

Professional Accountants and the

Development of a Management

Accounting Service for the Small Firm:

Barriers and Possibilities, Management

Accounting Research,11(4).

7. Mitchell, F, Reid, G., and Smith, J.

(1998), A Case for Researching

Management Accounting in SME's,

Management Accounting: Magazine for

Chartered Management Accountants,

76,30-33.

8. Akdogan N (1998). Cost Accounting

Practices in Unified Accounting System.

Istanbul, Turkey.

9. Shim JK, Siegel JG (2005). The Vest

Pocket Guide to Information

Technology, New Jersey: John Wiley

and Sons Inc.

10. Singleton T, Singleton A, Bologna J,

Lindquist R (2006). Fraud Auditing And

Forensic Accounting. New Jersey: John

Wiley & Sons Inc.

11. Alves, M.c.G. (2010), "Information

Technology Roles in Accounting Tasks-

A Multiple Case Study", International

Journal of Trade, Economics and

Finance, 1 (1), June 2010.

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13. http://en.wikipedia.org/wiki/E-

accounting

14. www.ecomaster.com

15. www.interpristor.com

16. www.amazines.com

http://www.interpristor.com/




TO STUDY OF HISTORY AND FUNCTIONS OF URBAN CO-OPERATIVE BANKS

DR. SANJAY B. SHINDE

MES, Shri Dnyaneshwar Mahavidyalaya, Newasa,

Dist. Ahmednagar (MS), India (Affiliated to S.P. Pune University, Pune)

Introduction:

The origin of the urban co-

operative banking movement in India can

be traced back to the close of nineteenth

century when, inspired by the success of

the experiments related to the co-operative

movement in Britain and the co-operative

credit movement in Germany such

societies were set up in India, co-operative

societies are based on the principles of co-

operation-mutual help, democratic

decision making and open membership.

Co-operatives represented a new and

alternative approach to organization as

against proprietary firms, partnership firms

and joint stock companies which represent

the dominant form of commercial

organization.

Origin and History Urban co-operative:

The first known mutual aid society

in India was probably the 'Anyonya

Sahakari Mandali' organised in the

erstwhile princely State of Baroda in 1889

under the guidance of Vithal Laxman

Kavthekar. Urban co-operative credit

societies organized on a community basis

to meet the consumption oriented credit

needs of their members. From its origins

then to today, the thrust of UCBs,

historically, has been to mobilise savings

from the middle and low income urban

groups and purvey credit to their members

- many of which belonged to weaker

sections.

The Cooperative Credit Societies

Act, 1904 was amended in 1912, with a

view to broad basing it to enable

organisation of non-credit societies. The

Maclagan Committee of 1915 was

appointed to review their performance and

suggest measures for strengthening them.

The committee observed that such

institutions were eminently suited to cater

to the needs of the lower and middle

income strata of society and would

inculcate the principles of banking

amongst the middle classes. The

committee also felt that the urban

cooperative credit movement was more

viable than agricultural credit societies.

The recommendations of the Committee

went a long way in establishing the urban

cooperative credit movement in its own

right. In the present day context, it fs of

interest to recall that during the banking

crisis of 1913-14 when no fewer than 57

joint stock banks collapsed, there was a

there was a flight of deposits from joint

stock banks to co-operative urban banks.

Maclagan committee chronicled this event

thus: ―As a matter of fact, the cisis had a

contrary effect, and in most provinces,

there was a movement to withdraw

deposits from non-co-operatives and place

them in co-operative institutions, the

distinction between two classes of security

being well appreciated and a preference

being given to the latter owing party to the

local character and publicity of co-

operative institutions but mainly, we think,

to the connection of Government with co-

operative movement.‖ The Government of

India Act in 1919 transferred the subject of

"Cooperation" from Government of India

to the Provincial Governments. The

Government of Bombay passed the first

State Cooperative Societies Act in 1925

"which not only gave the movement its

size and shape but was a pace setter of

cooperative activities and stressed the

basic concept of thrift, self-help and

mutual aid." Other States followed. This

marked the beginning of the second phase

in the history of Cooperative Credit

Institutions.

Key worlds – co-operative, banking,

economy, movement, Urban

Objectives of the study:-




The objectives of the research paper are as

below:

1. To know the concept of co-operative

banks.

2. To study of Importance of Urban

Cooperative Banks

3. To study Difference between

commercial and co-operative banks.

Research Methodology:-

The primary source of data

collection in this research paper is the

secondary data. The available information

on co-operative and co-operative banks

has been extensively used to complete the

research report. All the available Journals,

Related books, Web, Articles, Publish and

unpublished information and Papers

provided necessary information to the

finalize the research paper.

Definition:-

1.The RBI defines Urban Cooperatives

Banks as ―small sized Co-operatively

organized banking units which operate in

metropolitan, urban and semi-urban

centers to cater mainly to the needs of

small borrowers, viz., owners of small

scale industrial units, retail traders,

professional and salaried classes‖.

2. An urban co-operative Bank is defined

as one which is organized for accepting

deposits from the public, which is usually

repayable by cheques which carry on

normal banking business. Urban Banks are

those credit societies which undertake all

kinds of banking business including the

acceptance of all types of deposits and the

provisions of banking facilities for their

clientele, such as making advances on

personal surety, issue of drafts,

discounting Hundis collection of Bills etc

Objectives of Co-Operative Banks:

1. To attract deposits from members as

well as non-members.

2. To advance loans to members.

3. To act as agent for the joint purchase

of domestic and other requirements of

the members.

5) To undertake collection of bills,

accepted or endorsed by members.

6) To arrange for safe custody of valuable

documents of members.

7) To provide other facilities as provided

by commercial banks.

Functions of Co-Operative Banks

1. Area of Operation - The area of

operation of an urban co-operative

bank is usually restricted by its bye-

laws to a municipal area or a town. In

some cases it exceeds this area.

2. Membership - The membership of

urban co-operative bank is composed

of persons living in urban areas, such

as traders, merchants, salaried and

professional classes etc. The conditions

relating to the membership are laid

down in their bye-laws. The

membership of these urban co-

operative banks varies considerably. In

Tamilnadu, the average membership

exceeded 7000, while in Maharashtra it

was over 3000, in Kerala, it was 2500,

in Orissa 2000, in Madhya Pradesh

1800, in West Bengal it was about 900.

3. Management - The management of

urban co-operative Bank rests in the

board of Directors, who are elected by

General Body, consisting of all the

members. The final authority in all

matters rests with the general body but

actual conduct of the affairs of the

bank rests with the board of directors

and the secretary of the bank. The

tenure of office of the Board of

Directors varies in the states. The usual

practices are to hold elections (a) each

year (b) once in three years, and (c)

each year by rotation for one third of

the board. Holding the elections every

year is not favoured by the study

group. The advantages of holding

elections once in three years are that

expenses are kept at a minimum and

the board of directors has time to learn

the working of the bank. It is also

observed that in a large number of

institutions the same persons were




elected to the board of directors from

term toperson from contesting election

more than one or two consecutive

terms.

4. Resources - Owned funds and

borrowed funds are main sources of

finance of Urban Co-operative Bank.

Own funds include paid up capital,

accumulated reserves created out of

appropriate from profits. Borrowed

funds cover deposits of members and

non members and loan from central co-

operative banks.

5. Deposits - The percentage of deposits

to working capital varied from state to

state. It was 76% total capital in 1967-

68. These banks have succeeded in

attracting deposits from non members

also because of growing public

confidence in their working. These

banks generally accept current

deposits, saving deposits and fixed

deposits. But with increasing

competition by the commercial banks,

more intensive efforts will be required

by urban co-operative banks to attract

more deposits.

6. Borrowing - Such borrowings of

urban co-operative banks from other

financing agencies are negligible.

These banks generally borrow from

central co-operative bank, while a few

borrowed from the appex banks. The

study group on credit co-operatives in

the Non Agricultural Sector (1963) that

the urban banks should be affiliated

with central co-operative banks and

appex banks should not finance them

directly.

7. Loan Operation - The loan operations

of Urban Co-operative Banks consists

of granting fixed loans or cash credit

loans to their members against

mortgage of unencumbered

immoveable property, or on surety of

one or more persons who are also

members. The member is eligible for

loan against personal security up to 5

to 10 times the share capital paid by

him.

8. Banking and other facilities - UCBs

provide facility of withdrawal of

deposits by cheque and arrange for

remittance of funds to other center.

Some banks collect pensions, pay

regularly insurance premiums of its

members, discount hundis and bills.

9. Investments - The UCBs invest their

surplus money in government and

other trustee securities. Karnatak

(225), Andhra Pradesh (132) Tamil

nadu (131) and West Bengal (111),

Kerala had (67) such banks while all

other states had less than 25 each. Over

the years, Primary (Urban) Co-

operative Banks have registered a

significant progress in growth, in

number and size and volume of

business handled. As on 31st March

2003, there were 2104 UCBs of which

56 were scheduled banks. About 79

percent of these banks are located in

five states – Andhra Pradesh, Gujrat,

Karnatak, Maharashtra and Tamilnadu

References

1. Deshmukh Prasad G.: Working of co-

operative Banks in India : Overview

and Prospects : Kanishks publisher,

New Dhehi

2. International Encyclopaedia of Social

Sciences,. 1972,

3. Indian institute of Banking &

Finance,(1928). Laws of Co-operative

Banking. Macmillan.

4. Ingale M. T., Sale D. L. and

Nawedkar D. S. Economic Analysis

of Multipurpose Co-operative

Societies in Konkan Region of

Maharashtra State : The Maharashtra

Co-operatives Quarterly. Oct 2007.

5. Jugale V. B. (1991) Theories of

Agricultural Finance: Atalantic

Publisher & Distributors.




HUMAN RESOURCE MANAGEMENT AND PERFORMANCE:

A REVIEW AND RESEARCH AGENDA

VILAS NICHIT

Assistant Professor,

C.T.Bora College,Shirur,

Dist–Pune, Maharashtra.

Abstract

Human resource is the most important asset for any Organization and it the source of

achieving competitive advantage managing human is very challenging as compared to

managing technology or capital and for its effective management organization effective

management system. There is a growing body of evidence supporting an association between

what are termed high performance or high commitment human resource management (HRM)

practices and various measures of organizational performance. However, it is not clear why

this association exists. This paper argues that to provide a convincing explanation of this

association we need to improve our theoretical and analytic frameworks in three key areas.

These are the nature of HRM, and especially the rationale for the specific lists of HR

practices; the nature of organizational performance; and the linkage between HRM and

performance. A model is presented within which to explore these linkages. The existing

literature on HRM and performance is reviewed in the light of this analysis to identify key

gaps in knowledge and help to focus further the research priorities. In the literature, it is

often assumed that traditional, control-oriented HRM systems are increasingly being

replaced by commitment-based HRM systems because the latter generally result in higher

firm performance. However, an HRM system's effectiveness may not depend on an

organization‟s external and internal context, and neither control nor commitment HR systems

are without disadvantages.

Keywords: Human, Performance, Outcomes, Theory, Virtual human resources.

Introduction:

A Human Resource Management

System or HRIS (Human Resource

Information System) is a form of HR

software that combines a number of systems

and processes to ensure the easy

management of a business' employees and

data. Human Resources Software is used by

businesses to combine a number of

necessary HR functions, such as storing

employee data, managing payrolls,

recruitment processes, benefits

administration and keeping track of

attendance records. It ensures everyday

Human Resources processes are manageable

and easy to access. It merges human

resources as a discipline and, in particular,

its basic HR activities and processes with the

information technology field, whereas the

programming of data processing systems

evolved into standardized routines and

packages of Enterprise Resource Planning

(ERP) software. On the whole, these ERP

systems have their origin from software that

integrates information from different

applications into one universal database. The

linkage of its financial and human resource

modules through one database is the most

important distinction to the individually and

proprietarily developed predecessors, which

makes this software application both rigid

and flexible.

Human Resource Information

Systems provide a means of acquiring,

storing, analyzing and distributing

information to various stakeholders. HRIS

enable improvement in traditional processes

and enhance strategic decision-making. The

wave of technological advancement has

revolutionized each and every space of life

http://www.tandfonline.com/keyword/Performance

http://www.tandfonline.com/keyword/Outcomes

http://www.tandfonline.com/keyword/Theory

https://en.wikipedia.org/wiki/Enterprise_resource_planning




today, and HR in its entirety was not left

untouched. Early systems were narrow in

scope, typically focused on a single task,

such as improving the payroll process or

tracking employees' work hours. Today's

systems cover the full spectrum of tasks

associated with Human Resources

departments, including tracking &

improving process efficiency, managing

organizational hierarchy, and simplifying

financial transactions of all types. In short,

as the role of Human Resources departments

expanded in complexity, HR technology

systems evolved to fit these needs.

Human Resource Management: Nature

Human Resource Management is a

process of bringing people and organizations

together so that the goals of each are met.

The various features of HRM include:

1) It is pervasive in nature as it is present

in all enterprises.

2) It tries to help employees develop their

potential fully.

3) It encourages employees to give their

best to the organization.

4) It is all about people at work, both as

individuals and groups.

5) It tries to put people on assigned jobs

in order to produce good results.

6) It helps an organization meet its goals

in the future by providing for competent

and well-motivated employees.

7) It tries to build and maintain cordial

relations between people working at

various levels in the organization.

8) It is a multi-disciplinary activity,

utilizing knowledge and inputs drawn

from psychology, economics, etc.

Human Resource Management: Scope

The scope of HRM is very wide:

1. Personnel aspect-This is concerned with

manpower planning, recruitment,

selection, placement, transfer,

promotion, training and development,

layoff and retrenchment, remuneration,

incentives, productivity etc.

2. Welfare aspect-It deals with working

conditions and amenities such as

canteens, cr? ches, rest and lunch rooms,

housing, transport, medical assistance,

education, health and safety, recreation

facilities, etc.

3. Industrial relations aspect-This covers

union-management relations, joint

consultation, collective bargaining,

grievance and disciplinary procedures,

settlement of disputes, etc.

Virtual human resources:

Technology has a significant impact on

human resources practices. Human resources

is transitioning to a more technology-based

profession because utilizing technology

makes information more accessible to the

whole organization, eliminates time doing

administrative tasks, allows businesses to

function globally and cuts costs.[30]

Information technology has improved HR

practices in the following areas:

E-Recruiting - Recruiting has mostly been

influenced by information technology.[31]

In

the past, recruiters had relied on printing in

publications and word of mouth to fill open

positions. HR professionals were not able to

post a job in more than one location and did

not have access to millions of people,

causing the lead time of new hires to be

drawn out and tiresome. With the use of e-

recruiting tools, HR professionals can post

jobs and track applicants for thousands of

jobs in various locations all in one place.

Interview feedback, background and drug

tests, and onboarding can all be viewed

online. This helps the HR professionals keep

track of all of their open jobs and applicants

in a way that is faster and easier than before.

E-recruiting also helps eliminate limitations

of geographic location.[31]

Jobs can be posted

and seen by anyone with internet access. In

addition to recruiting portals, HR

professionals have a social media presence

that allows them to attract employees

through the World Wide Web. On social

media they can build the company's brand by

posting news about the company and photos

of fun company events.

Human Resources Information Systems

(HRIS) - Human resources professionals

generally process a considerable amount of

paperwork on a daily basis. This paperwork

could be anything from a department transfer

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https://th.jobsdb.com/th/en/Search/FindJobs?KeyOpt=COMPLEX&JSRV=1&RLRSF=1&JobCat=15&JSSRC=JSRAS&keepExtended=1

https://th.jobsdb.com/th/en/Search/FindJobs?KeyOpt=COMPLEX&JSRV=1&RLRSF=1&JobCat=1&JSSRC=JSRSB



https://th.jobsdb.com/TH/EN/Resources/JobSeekerArticle/th.jobsdb.com/th/en/Search/FindJobs?KeyOpt=COMPLEX&JSRV=1&RLRSF=1&JobCat=118&JSSRC=JSRAS&keepExtended=1

https://th.jobsdb.com/th/en/Search/FindJobs?KeyOpt=COMPLEX&JSRV=1&RLRSF=1&JobCat=265&JSSRC=JSRSB

https://th.jobsdb.com/th/jobs/medical-services

https://th.jobsdb.com/th/jobs/education

https://th.jobsdb.com/th/jobs/beauty-care-health

https://en.wikipedia.org/wiki/Human_resource_management#cite_note-:0-30






request to an employee's confidential tax

form. In addition to processing this

paperwork, it has to be on file for a

considerable period of time. The use of

Human Resources Information Systems

(HRIS) has made it possible for companies

to store and retrieve files in an electronic

format for people within the organization to

access when needed. This eliminates

thousands of files and frees up space within

the office. Another benefit of HRIS is that it

allows for information to be accessed in a

timelier manner. Instead of HR professionals

having to dig through files to gain

information, it is accessible in seconds via

the HRIS. Having all of the information in

one place also allows for professionals to

analyze data quicker and across multiple

locations because the information is in a

centralized location. Examples of some

Human Resources Information Systems are

PeopleSoft, My Time, SAP, Timeco, and

Jobs Navigator.

Training - Technology makes it possible

for human resources professionals to train

new staff members in a more efficient

manner. This gives employees the ability to

access on boarding and training programs

from anywhere. This eliminates the need for

trainers to meet with new hires face to face

when completing necessary paperwork to

start. Training in virtual classrooms makes it

possible for the HR professionals to train a

large number of employees quickly and to

assess their progress through computerized

testing programs. Some employers even

incorporate an instructor with virtual training

so that new hires are receiving the most vital

training. Employees can take control of their

own learning and development by engaging

in training at a time and place of their

choosing, helping them manage their work-

life balance. Managers are able to track the

training through the internet as well, which

helps to reduce redundancy in training and

training costs. Skype, virtual chat rooms, and

interactive training sites are all resources that

enable a more technological approach to

training to enhance the experience for the

new hire.

The major functional areas in human

resource management are:

1. Planning,

2. Staffing,

3. Employee development, and

4. Employee maintenance.

These four areas and their related functions

share the common objective of an adequate

number of competent employees with the

skills, abilities, knowledge, and experience

needed for further organizational goals.

Although each human resource function can

be assigned to one of the four areas of

personnel responsibility, some functions

serve a variety of purposes. For example,

performance appraisal measures serve to

stimulate and guide employee development

as well as salary administration purposes.

The compensation function facilitates

retention of employees and also serves to

attract potential employees to the

organization. A brief description of usual

human resource functions are given below:

Human Resource Planning: In the planning

function, the number and type of employees

needed to accomplish organizational

goals are determined. Research is an

important part of this function because

planning requires the collection and analysis

of information in order to forecast human

resources supplies and to predict future

human resources needs. The basic human

resource planning strategy is staffing and

employee development.

Job Analysis: Job is the process of

describing the nature of a job and specifying

the human requirements, such as skills, and

experience needed to perform it. The end

product of the job analysis process is the job

description. A job description spells out

work duties and activities of employees. Job

descriptions are a vital source of information

to employees, managers, and personnel

people because job content has a great

influence on personnel programmes and

practices.

Staffing: Staffing emphasizes the

recruitment and selection of the human

resources for an organization. Human

resources planning and recruiting precede

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the actual selection of people for positions in

an organization. Recruiting is the personnel

function that attracts qualified applicants to

fill job vacancies. In the selection function,

the most qualified applicants are selected for

hiring from among those attracted to the

organization by the recruiting function. On

selection, human resource functionaries are

involved in developing and administering

methods that enable managers to decide

which applicants to select and which to

reject for the given jobs.

Orientation:Orientationis the first step

toward helping a new employee adjusts

himself to the new job and the employer. It

is a method to acquaint new employees with

particular aspects of their new job, including

pay and benefit programmes, working hours,

and company rules and expectations.

Training and Development: The training

and development function gives employees

the skills and knowledge to perform their

jobs effectively. In addition to providing

training for new or inexperienced

employees, organizations often provide

training programmes for experienced

employees whose jobs are undergoing

change. Large organizations often have

development programmes which prepare

employees for higher level responsibilities

within the organization. Training and

development programmes provide useful

means of assuring that employees are

capable of performing their jobs at

acceptable levels.

Performance Appraisal: Performance

function monitors employee performance to

ensure that it is at acceptable levels. Human

resource professionals are usually

responsible for developing and administering

performance appraisal systems, although the

actual appraisal of employee performance is

the responsibility of supervisors and

managers. Besides providing a basis for pay,

promotion, and disciplinary action,

performance appraisal information is

essential for employee development since

knowledge of results (feedback) is necessary

to motivate and guide performance

improvements.

Career Planning: Career has developed

partly as a result of the desire of many

employees to grow in their jobs and to

advance in their career. Career planning

activities include assessing an individual

employee‘s potential for growth and

advancement in the organization.

Compensation: Human resource personnel

provide a rational method for determining

how much employees should be paid for

performing certain jobs. Pay is obviously

related to the maintenance of human

resources. Since compensation is a major

cost to many organizations, it is a major

consideration in human resource planning.

Compensation affects staffing in that people

are generally attracted to organizations

offering a higher level of pay in exchange

for the work performed. It is related to

employee development in that it provides an

important incentive in employees to higher

levels of job performance and to higher

paying jobs in the organization.

Labour Relations: The term ―labour

relations‖ refers to interaction with

employees who are represented by a trade

union. Unions are organization of employees

who join together to obtain more voice in

decisions affecting wages, benefits, working

conditions, and other aspects of

employment. With regard to labour relations,

the personnel responsibility primarily

involves negotiating with the unions

regarding wages, service conditions, and

resolving disputes and grievances.

Record-keeping: The oldest and most basic

personnel function is employee record-

keeping. This function involves recording,

maintaining, and retrieving employee related

information for a variety of purposes.

Records which must be maintained include

application forms, health and medical

records, employment history (jobs held,

promotions, transfers, lay-offs), seniority

lists, earnings and hours of work, absences,

turnover, tardiness, and other employee data.

Complete and up-to-date employee records

are essential for most personnel functions.

More than ever employees today have a

great interest in their personnel records.

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http://www.whatishumanresource.com/compensation-management

http://www.whatishumanresource.com/human-resource-planning

http://www.whatishumanresource.com/introduction-to-trade-unions



http://www.whatishumanresource.com/industrial-disputes

http://www.whatishumanresource.com/grievance-in-industry

http://www.whatishumanresource.com/promotions-of-employee

http://www.whatishumanresource.com/employee-transfers

http://www.whatishumanresource.com/lay-off




They want to know what is in them, why

certain statements have been made, and why

records may or may not have been updated.

Performance in Human Resource

Management

The performance of the organization

is always a difficult topic. Each top manager

likes the comparison of the organization with

the main competitors on the market. Each

top manager likes the comparison with the

market benchmark. The organization always

finds measures, which are better than the

competitors ones. However, it says nothing

about the performance of the company. It

says nothing about the performance of

employees. The Organization has to set the

performance standards, the system measures

employees against defined standards. The

Performance management is not about

measuring doing things it is about setting

clear & challenging goals (SMART) and it is

about the regular evaluation of the progress.

The system pushes managers & employees

to cooperate on achievement. The

performance management has to improve the

organization. Meeting the standards is not

about the improvement. it is about the status

quo. The organization without the

development slowly dies. HR has to bring

the tool, which pushes managers and

employees in their creativity. The strategic

agenda has to be challenging and realistic.

The goals have to follow the strategic

agenda. The excellent employees make the

strategic agenda the reality

Conclusion

Human Resource Management

focuses on matching the needs of the

business with the needs and development of

employees. Tarmac depends on its people

because their skills contribute to achieving

its business objectives. Within Tarmac,

every employee has a valuable role to play.

The emphasis is on helping individuals to

work together. Workforce planning is part of

this strategic process, which looks at the

long-term needs across the organisation.

Personal development plans enable every

individual to grow both professionally and

personally within the business. They also

help Tarmac to create a distinct and

important competitive advantage through

selecting and developing highly motivated

and skilled staff who are able to perform at

high levels.

References:

1. "Benefits of Human Capital

Management". Emptrust. Retrieved 8

August 2017.

2. Johnason, P. (2009). HRM in changing

organizational contexts. In D. G.

Collings & G. Wood (Eds.), Human

resource management: A critical

approach (pp. 19-37). London:

Routledge.

3. Collings, D. G., & Wood, G. (2009).

Human resource management: A critical

approach. In D. G. Colligs & G. Wood

(Eds.), Human resource management: A

critical approach (pp. 1-16). London:

Routledge.

4. Paauwe, J., & Boon, C. (2009). Strategic

HRM: A critical review. In D. G.

Collings, G. Wood (Eds.) & M.A. reid ,

Human resource management: A critical


Routledge.

5. Klerck, G. (2009). "Industrial relations

and human resource management". In D.

G. Collings & G. Wood (Eds.), Human

resource management: A critical


Routledge.Griffin, Ricky. Principles of

Managemen.

http://www.emptrust.com/blog/human-capital-management

http://www.emptrust.com/blog/human-capital-management




ROLE OF FACULTY DEVELOPMENT PROGRAMS

IN IMPROVING TEACHING AND LEARNING

DR. SUNIL ZAGADE

Associate Professor

Garware College of commerce, Pune, Maharashtra

Abstract-

Lot of efforts and reforms are being introduced by the Indian Government to improve

the quality of education. The quality of higher education definitely depends upon the quality

of its teachers. Just having a good foundation of disciplinary knowledge is not sufficient.

Faculty needs information, literacy and understanding of the interactions, kinds of

knowledge, and an ability to work with others.” They need to continue their own personal,

professional and social learning. Faculty members must have the knowledge and skill to take

up these advances in their teaching and curricular planning. The knowledge sharing will

improve the teaching learning process for the student and benefit the society. Effective faculty

development program provide knowledge and tools that enable the faculty to plan and

implement instructional approaches that are responsive to various learning.

Keywords-: Faculty Development Program, Curriculum, Teaching learning.

Introduction:

Swami Vivekananda said,

―Education is the manifestation of perfection

already in men.‖ The faculty members in

college and Universities must start teaching

in a new and different way. It means that

current generation of professor must break

the centuries old way of teaching and create

a new way that is different and better. They

need to acquire new ideas about teaching

and learning. College and Universities must

plan to provide better training for the

teacher, which would help to develop their

knowledge and positive approach. Effective

faculty development program provide

knowledge and tool that enable the faculty to

plan and implement approaches that are

responsive to various learning. FDP is really

helpful to improve their performance and

confidence among themselves.

Objectives:

The present research paper is undertaken

with the following objective,

1. To understand the concept of FDP.

2. To know the importance of FDP.


The present study is based on secondary

method of data collection. The relevant data

collected from,

1. Book of education

2. Website

What is faculty development?

Effective faculty development

program provide knowledge and tool that

enable the faculty to plan and implement

instructional approaches that are responsive

to various learning. An effective faculty

development program should contain self

evaluation. The faculty could contain

assessment of their own strength,

weaknesses and areas for improvement.

To make FDP effective, four factors

are to be taken into account, to help the

amount of learning,

1. Course content.

2. The preferred teaching style.

3. The preferred learning style.

4. Educational Environment.

Apart from these four factors,

1. The skill

2. Knowledge

3. Aspiration

4. Significant for effective education.

Faculty Development in India

One of the most important, if not the

most critical, cornerstone of any educational

set-up is faculties in terms of its adequacy,

composition and quality. Unfortunately, in

many of the institutes in India, the course

content is not satisfactory and as per




requirement of the industry. There is an

urgent need to move away from the

traditional approach of teaching in classroom

situation to be mentor and facilitator for

facilitating the proceedings. Lack of

adequate research orientation in institutes is

a critical issue. The output of research

becomes input for classroom teaching,

enhancing effectiveness of learning process.

The other crucial issue in the system

is that there is no adequate interaction

between institution and corporate sector.

Current status of faculty development

One of the valuable and existing

changes that have occurred in higher

education in the last few decades is the

steady growth in faculty development

program. The key objectives of FDP are to

improve access, equity and quality of higher

education through planned development of

higher education at the state level.

Every college conducted FDP. The

main object of conducting the FDP is to

develop knowledge of the teacher. FDP is

nothing but as like providing training and

improving skills, abilities of the teacher. It

helps to develop the all round performance

of the teacher. Faculty training is very

important in these days. Training the faculty

to meet the new generation‘s demand and

update themselves is essential. Training is

needed not only in their main subject areas

but also in the areas of how to offer the

content effectively. In higher education

system much emphasis is given for faculty

development for enhancing the quality of

teacher instruction and for a teacher‘s

growth and development.

Importance of Faculty Development

Program

1. Fiscal constraints and call for

accountability- The faculty member‘s

demolistrate greater accountability in

the face of the increasing expenses of

public and private investment in

education.

2. Increasing diversity of student-

Effective faculty must support the

learning of that student with diverse

learning need and develop curricula

and teaching strategies appropriate

for a wide range of learning

environment.

3. The opportunities and challenges of

technology- technologies offer many

opportunities to enhance learning

processes with information. Faculty

members must have the knowledge

and skills to take up these advances

in their teaching and curricular

planning.

4. The new faculty members require

training for institution‘s community

and culture. It helps ensuring the

quality of their skills and abilities.

Faculty Development Program Activity’s

effect on student

If we conduct FDP regularly, it will

be more effective on student.

1. Students improve their knowledge,

attitude and skill.

2. Change in teaching behavior against

students.

3. Change in organizational practice

and student learning.

4. Change in attitude towards teaching

and faculty development.

5. High satisfaction with FDPs.

How if faculty development

accomplished?

With the phenomenal change in

educational and information technology, the

role of the teacher has undergone dramatic

change, he/she is expected to possess skills

and abilities to plan the curriculum, make

rational use of the media technology and

design an assessment strategy.

This is positive only through a systematic

approach to Faculty Development.

Aims of FDP

1. To enrich the knowledge of faculties

through interaction with eminent

personalities from industries and

academics.

2. The knowledge sharing will improve

the teaching learning process to

student and benefit the society.

3. To develop the positive attitude and

approach of the teacher.




Conclusion

Faculty members in higher education

are experts in their field of study, many of

them may not have been trained in the

practices of effective teaching, how to share

their expertise and how to improve their

knowledge in latest technical developments.

Considering the global and long term view

of higher education, it is clear that faculty

development has become well established. In

addition, the whole profession now has a

strong base of powerful ideas about teaching

and learning in higher education, stronger

than at any time in the past.

References

A. Books

1. Andrew J. H. and others (2013).

Mentoring beginning teachers: What we

know and we don‘t. Teaching and

teacher‘s education.

2. Fink, L. Dee (2013). The current status

of faculty development internationally,

international journal for the scholarship

of teaching and learning: Vol-7.,No.2,

Article 4.

3. Sorcinelli, M. D. (2000). Principles of

good practice: supporting early career

faculty. Washington DC, American

Association of Higher Education.

4. Vivienne C. and others (2010).

Professional development for teachers: A

world of change.

B. Websites:

www.naacindia.org

www.naac.govt.in

http://www.naacindia.org/

http://www.naac.govt.in/




MUDRA BANKING

DR. H. M. JARE

Vice-Principal,

Hutatma Rajguru Mahavidyalaya, Rajgurunagar,

Dist-Pune, Maharashtra.

INTRODUCTION MUDRA:

Micro Units Development and Refinance Agency “Funding The Unfunded” Launched

by Mr. Narendra Modi on 8 April 2015, envisage providing MUDRA loan, up to Rs10 lakh.

Loans are given to those micro institutions which are engaged in manufacturing, trading and

services sectors. MUDRA bank launched with corpus of Rs. 20,000 crores and credit

guarantee of Rs. 3,000 crores. Under this scheme loans are rendered by banks, NBFCs, MFIs

and other financial institutions as mentioned by MUDRA ltd.

KEYWORDS: proprietorships, growth, micro enterprises, financial institutions.

OBJECTIVE OF THE STUDY:

1. To study the government‘s proposed

strategies to get success in completion of

this project.

2. To understand the legal framework

required to avail benefit under this

scheme.

3. This paper is concerned to overview on

scheme MUDRA under PMMY.

4. To understand the need of MUDRA

Yojna.

5. To raised Skill Development.

6. To find out the scope of this scheme.

METHODOLOGY:

The current research paper is mainly

based on secondary sources of data

consisting of various magazines,

newspapers, websites and Government

publications.

MUDRA OFFERINGS:

Under the guidance of Pradhan

Mantri MUDRA Yojana (PMMY), MUDRA

has already shaped its initial Schemes /

products in to three different categories

depending on the nature of business.

Shishu:- Covering loans upto

Rs.50,000 for just starting small business.

Kishore:- If you have set your

business loans above Rs.50,000 and upto Rs.

5 lakh covered in this scheme.

Tarun:- f you need more fund to

raise your good established business, then

you will get loan cover above 5 lakh to 10

lakh.

It would be ensured that around 60%

of the loan flows to Shishu category and the

balance to Kishore and Tarun categories.

With the framework and overall purpose of

growth and development of these schemes

being offered by MUDRA at the rollout

stage have been designed to meet

requirements of different sectors / business

activities as well as business entrepreneur

segments. Brief details are as under:

Mahila Uddyami Scheme (Women

Preneurs), Equipment Finance Scheme for

Micro Units Business Loans for Traders and

Shopkeepers Micro Credit Scheme (MCS),

Refinance Scheme for RRB s/ Cooperative

Banks Sector / Activity Focussed Schemes.

Mahila Uddyami Scheme:- Suitable

and sufficient financial support to the MFIs,

for on lending to women / group of women‘s

/ JLGs / SHGs for creation of qualifying

assets as per RBI guidelines towards

operating micro enterprises as per MSMED

Act.

Equipment Finance Scheme for

Micro Units:- Suitable and sufficient

financial support for on lending to

individuals for purchasing of necessary

equipments.

Business Loans for Traders and

Shopkeepers:- Appropriate and adequate

financial support for on lending to

individuals for running their shops / business

activities and trading/ non –farm income




generating activities and service enterprises

loan size up to Rs.10 lakh per borrower.

Micro Credit Scheme (MCS):- Support to the MFIs, for on lending to

Individuals / groups of individuals / JLGs /

SHGs for creation of qualifying assets as per

RBI guidelines towards operating micro

enterprises as per MSMED Act.

Refinance Schemes for RRBs /

Cooperative Banks:- Attractive Liquidity of

RRBs / Scheduled Cooperative Banks by

refinancing loan absolute to micro

enterprises as per MSMED Act. Sector /

Activity Focussed Schemes:- To maximise

coverage of beneficiaries to meet

requirements of specific business activities

focused schemes would be rolled out.

Schemes are proposed for:

a. Land Transport Sector/ Activity: Purchase of transport vehicles such as auto

rickshaw, E- rickshaw, 3 wheelers, small

goods transport, taxi, passenger cars etc.

b. Community, Social & Personal

Service Activities: Such as Boutiques,

Beauty Parlours, saloons, tailoring shops,

gymnasium, cycle and motor cycle repair

shop, dry cleaning, courier agents, medicine

shops etc.

c. Food Products Sector: Fruits

/vegetables vendors, papad making, achaar

Making, jam / jelly making, ice and ace

cream making units, biscuit, bread and bun

making units, sweet shops, day catering /

canteen services etc.

d. Textile Products Sector: To give

support for small industries such as knitting,

printing, cotton ginning, computerized

embroidery, stitching, handloom, chikan

work, zari and zardozi work, traditional

embroidery and dyeing, hand work, vehicle

accessories and furnishing accessories etc.

Innovative Offering: MUDRA CARD:-

For the purpose of working capital

limit, it has launched a new product called “

MUDRACARD”, which is debit card and

provides hassle free credit in flexible

manner. It can be used to purchase raw

material and components from registered

producers on an online platform. The card

could be linked with popular savings account

“Pradhan Mantri Jan Dhan Yojana” of

the borrower and the drawls could also be

enabled through the Banks ATM network.

National Payment Corporation of India

(NPCI) has given RuPay branding to

MUDRA Card and also separate BIN/ IIN

for the same, buy which credit history can be

tracked.

Eligible Borrowers:- The applicant

should not be debtor to any bank or financial

institution and should have a adequate credit

track record. The individual borrowers may

be required to have the necessary skills/

experience/ knowledge to commence the

proposed activity. The objective of MUDRA

is to impart financial assistance to the non-

corporate business sector. Under this scheme

loans are given to eligible borrowers to

purchase capital assets / working capital /

marketing requirements and income

generating small business activities in

manufacturing, processing, service sector or

trading etc not for self consumption and

personal needs.

Promoters Contribution:-

Promoters behaves as per the policy

framework of the bank, based on overall

guidelines by RBI (Reserve Bank of India)

Interest Rates and Processing

Charges: promoters like Scheduled

Commercial banks, RRBs and Cooperative

banks wishing to avail of refinance from

MUDRA will have to peg their interest rates,

as advised by MUDRA Ltd, from time to

time. Banks may charge from the borrower

in the name of processing charges as per

their internal guidelines. Processing charges

for Shishu loans are waived by most banks.

Repayment of Loan:-

Term Loan: To be repaid in suitable

instalments as per cash flow of the business.

OD & CC Limit: Repayment on

demand. Renewal and Annual Review as per

internal guidelines of the bank. Tenor of

Assistance: Its tenor will be for a maximum

36 months which will also be associated to

terms of allocation of MUDRA funds by

RBI from time to time.

Availability of the loan: - Mudra

loan under PMMY is accessible at all




branches across the country. MUDRA loan

is also available at Scheduled Commercial

Bank and Regional Rural Banks. Mudra loan

is also issued by NBFCs / MFIs who are

financing micro enterprises in small business

activities.

Impact on Indian Economy:-

Enhance Production Capacity: Due

to availability of easy finance small

entrepreneurs can use optimum aptitude of

their resources to increase productivity.

Employment Generating:- Mudra

loan scheme increased the confidence of the

hopeful young person to become first

creation entrepreneurs as also of active small

businesses to enlarge their activities. Due to

awareness about PMMY approx. 6 crores

small business units are to be benefited

under this scheme which helps in generating

about 11 crore jobs and the numbers are

increasing day by day.

Boost Liquidity:- To boost liquidity,

a loan amount of Rs. 25000 crore approx.

has already been distributed to almost 38

lakhs people under PMMY scheme.

Raise in GDP:- Non-corporate small

business sector can increase the productivity

of small enterprises with the help of

MUDRA scheme and contribute more to

India‘s GDP.

Women Empowerment:- Mahila

Uddyami Scheme expressly encourages

women entrepreneurs leading to women

empowerment.

Synergies with “Make in India”

Campaign:- MUDRA, being an initiative

for promoting micro enterprises, fits well

with Make in India initiative for supporting

these micro enterprises. This also works for

Start-up India and Stand-up India campaign.

Synergies with National Rural

Livelihoods Mission/ National Urban

Livelihood Mission:-

The National Rural Livelihoods

Mission (NRLM) is set up ―To reduce

poverty by enabling the poor households to

access gainful self-employment and skilled

wage employment opportunities, resulting in

appreciable improvement in their livelihoods

on a sustainable basis, through building

strong grassroots institutions of the poor.‖

Synergies with National Skill

Development Corporation:- Synergizing

with NSDC will help MUDRA in

augmenting the skill sets of the sectoral

players.

Benefit of Mudra Bank:-

It provides hassle free credit in a flexible

manner.

Interest rate charged shall be reasonable

and would be applicable as per RBI

guidelines.

No subsidy is given to the borrowers.

Problems faced in setting up

infrastructure will be resolved.

No processing fee would be charged.

CONCLUSION

Indian Government started MUDRA

scheme to officially support Non –Corporate

Small Business Sector. People living in rural

and interior part have been availing benefit

from MUDRA and it will help the growth of

Indian MSME Sector and also helps to

increase GDP of our country. MUDRA will

create a new confidence in the small scale

entrepreneurs and it also boost young,

educated or skilled workers to expand their

activities .MUDRA scheme specially

encourages women entrepreneurs which

leads to women empowerment and plays a

important role in nation building.

REFERENCES

1. Official website of MUDRA

scheme.(http:// www.mudra.org.in/)

2. Times of India report

(http://timesofindia.indiatimes.com/

business/india-business/Rs-24000-crore-

loans-disbursedunder-Mudra-

Yojana/articleshow/49140570.cms)

3.

http://www.allonmoney.com/economy/pradh

an-mantrimudra-yojana.

4. pmindia.gov.in

5. NDTV business report

(http://profit.ndtv.com/topic/mudra)

http://www.mudra.org.in/

http://www.allonmoney.com/economy/pradhan-mantrimudra-yojana

http://www.allonmoney.com/economy/pradhan-mantrimudra-yojana




TIME MANAGEMENT: EFFECTIVE TOOL OF MANAGEMENT

DR. V. T. PATE

Assistant Professor,


Taluka-Junnar, District-Pune, Maharashtra, India.

ABSTRACT

In this research paper included that, what is the importance of time management in

our life? Also I give in this research paper to conclude that the effective tool of management

in business organization. Time management helps you have a greater sense of control over

your life, both at work and at home. Time management helps you have a greater sense of

control over your life, both at work and at home. Good time management is essential to

success at university. Planning your time allows you to spread your work over a session,

avoid a „traffic jam‟ of work, and cope with study stress. Studying at university often involves

meeting conflicting deadlines, and unless you plan ahead, you‟ll find it impossible to manage.

To meet the demands of study you need to spread your workload over a session. Work out

what needs to be done and when. Work out how to use your available time as efficiently as

possible. At a minimum, a day planner is a device that includes a calendar, space to write

“to-do” lists, and space to write telephone numbers, addresses, and other basic

identifying/reference information. It can be a paper-and-pencil model, as with Franklin

planner, Day Timer, or Planner Pad brands. It can be a fancy electronic organizer such as a

Palm Pilot, or it can be time management software on a laptop or desktop computer.

Electronic organizers have a number of advantages. They are compact; they provide audible

reminders that can serve as memory management aides, they can sort, organize, and store

more information more efficiently than paper and pencil planners; and they can easily

exchange information with office and home computers.

KEY WORDS - Time Management, Planning, Controlling, Day Time, Success, Work

Efficiency, Business Organisation.

INTRODUCTION

“Your day planner should be the only

planning calendar for everything you

do…”

Good time management is essential

to success at university. Planning your

time allows you to spread your work over

a session, avoid a ‗traffic jam‘ of work,

and cope with study stress. Studying at

university often involves meeting

conflicting deadlines, and unless you plan

ahead, you‘ll find it impossible to manage.

To meet the demands of study you need to

spread your workload over a session.

Work out what needs to be done and when.

Work out how to use your available time

as efficiently as possible.

At a minimum, a day planner is a

device that includes a calendar, space to

write ―to-do‖ lists, and space to write

telephone numbers, addresses, and other

basic identifying/reference information. It

can be a paper-and-pencil model, as with

Franklin planner, Day Timer, or Planner

Pad brands. It can be a fancy electronic

organizer such as a Palm Pilot, or it can be

time management software on a laptop or

desktop computer. Electronic organizers

have a number of advantages. They are

compact; they provide audible reminders

that can serve as memory management

aides, they can sort, organize, and store

more information more efficiently than

paper and pencil planners; and they can

easily exchange information with office

and home computers.

Do you schedule many

appointments on the hour or half-hour?

Then use a clear daily view. Are you

making ―to do‖ lists but not scheduling




many appointments? Perhaps a weekly

view with a lot of space for lists is needed.

Your day planner should be the only

planning calendar for everything you do

(i.e., work, home, personal). Using

separate calendars at home and at the

office may become confusing and

overwhelming; you will inevitably forget

to transfer entries from one calendar to the

other and miss appointments or important

commitments.

After selecting a planner, the next

step is to start keeping it in a single,

accessible location at home and at work,

so you will always know where to find it.

The location should be clearly visible from

a distance, even in a cluttered room or on a

messy desk. Convenient locations might

be next to the telephone, on a table near

the front door, or on the desk at the office.

If the day planner has a strap, it might be

hung on a hook next to the front door,

above the telephone, or together with the

car keys. Carry it to and from work, and

practice keeping it in the designated

locations for a week.

OBJECTIVES OF THE RESEARCH

STUDY

The said research study was carried out

with following objectives in view:-

1. To study the effective Time

Management.

2. To study the strategies for better Time

Management.

3. To study the major steps to successful

Time Management.

HYPOTHESIS

The main hypothesis of the said

research paper is as follows:

H 1 A great deal of time management is

really about taking responsibility for

your learning.

H 2 The best plan is to be aware of how

much time you have and to manage it

effectively.


For the present research study the

data pertaining to the above objectives was

collected and reviewed the literature on the

topic concerned. The literature was thus

collected by visiting various libraries.

Some Government offices were also

visited for getting office record and

statistical data. The secondary data is also

collected from various websites.

With the above objectives keep in

mind the instructed Interview Method and

Desk Research Method was basically

adopted. The Secondary Data is collected

from various reference books related to

Management, Time Management,

Business Management, Strategic

Management, Planning Management,

Commerce & Management, and Marketing

& Finance etc. For said research study

secondary data is also collected from the

National and International Research


Management, Marketing and Time

Management.

TIME MANAGEMENT EFFECTIVE

TOOL OF MANAGEMENT

Before you undertake study, you

need to realistically assess all the demands

on your time. Consider paid employment,

family duties, sport, leisure or civic

commitments. Good time management

will not help if you are overcommitted. If

you study full time, spend more than about

12 hours per week in paid employment and

spend every evening at the gym, you won‘t

have much time to study. If you suspect

you might have taken on too much,

reassess your commitments, priorities and

compromise. Be realistic about the amount

of time an assignment will take you to

complete. Different tasks require different

amounts of preparation time. For example,

you might only need a few hours to

prepare for a tutorial, but writing an

assignment will take significantly longer.

You can‘t produce good, well written work

unless you give yourself enough time to

think research and write. Brilliant

assignments are not written the night

before, so start them in good time.

Some weeks will be busier than

others, and unforeseen things can happen.

Remember that a timetable is only a plan

or a guide. If you plan a study time slot




and miss it, don‘t panic look at the

schedule and rearrange your time. A great

deal of time management is really about

taking responsibility for your learning. The

best plan is to be aware of how much time

you have and to manage it effectively. Be

realistic about your time and what you can

do with it.

TEN STRATEGIES FOR BETTER

TIME MANAGEMENT

Finding a time management

strategy that works best for you depends

on your personality, ability to self-

motivate and level of self-discipline. By

incorporating some, or all of the ten

strategies below, you can more effectively

manage your time.

1. Know How You Spend Your Time :

Keeping a time log is a helpful way to

determine how you are using your time.

Start by recording what you are doing

for 15-minute intervals for a week or

two. Evaluate the results. Ask if you did

everything that was needed; determine

which tasks require the most time;

determine the time of day when you are

most productive; and analyze where

most of your time is devoted job,

family, personal, recreation, etc.

Identifying your most time consuming

tasks and determining whether you are

investing your time in the most

important activities can help you to

determine a course of action. In

addition, Having a good sense of the

amount of time required for routine

tasks can help you be more realistic in

planning and estimating how much time

is available for other activities.

2. Set Priorities : Managing your time

effectively requires a distinction

between what is important and what is

urgent. Experts agree that the most

important tasks usually aren‘t the most

urgent tasks. However, we tend to let

the urgent dominate our lives. Covey,

Merrill, and Merrill categorize our

activities into four quadrants in their

Time Management Matrix: urgent, not

urgent, important and not important.

While activities that are both urgent and

important must be done, Covey etc.

suggests that we spend less time on

activities that are not important in order

to gain time to focus on activities that

are not urgent but important. Focusing

on these important activities allows you

to gain greater control over your time

and possibly reduce the number of

important tasks that do become urgent.

3. Use a Planning Tool : Time

management experts recommend using

a personal planning tool to improve

your productivity. Examples of personal

planning tools include electronic

planners, pocket diaries, calendars,

computer programs, wall charts, index

cards and notebooks. Writing down

your tasks, schedules, and memory

joggers can free your mind to focus on

your priorities. Auditory learners may

prefer to dictate their thoughts instead.

The key is to find one planning tool that

works for you and use that tool

consistently.

4. Get Organized : Most people find that

disorganization results in poor time

management. Professional organizers

recommend that you first get rid of the

clutter. A frequently used method is to

set up three boxes labeled ―Keep‖ –

―Give Away‖, ―Toss.‖ Separate the

clutter by sorting items into these

boxes. Immediately discard items in

your ―Toss‖ box. Your ―Give Away‖

box may include items you want to sell,

delegate, or discontinue so find a

method to eliminate these items such as

a yard sale, charitable donation, or gifts

to friends or family members outside

your home.

5. Schedule Your Time Appropriately :

Even the busiest people find time for

what they want to do and feel is

important. Scheduling is not just

recording what you have to do (e.g.,

meetings and appointments), it is also

making a time commitment to the

things you want to do. Good scheduling

requires that you know yourself. Using




your time log, you should have

determined those times during the day

when you are most productive and alert.

Plan your most challenging tasks for

when you have the most energy. Block

out time for your high priority activities

first and protect that time from

interruptions.

6. Delegate: Get Help from Others :

Delegation means assigning

responsibility for a task to someone

else, freeing up some of your time for

tasks that require your expertise.

Delegation begins by identifying tasks

that others can do and then selecting the

appropriate person to do them. You

need to select someone with the

appropriate skills, experience, interest,

and authority needed to accomplish the

task. Be as specific as possible in

defining the task and your expectations,

but allow the person some freedom to

personalize the task.

7. Manage External Time Wasters :

Your time may be impacted by external

factors imposed by other people and

things. You can decrease or eliminate

time spent in these activities by

implementing some simple tips listed

below.

8. Avoid Multi-tasking : Recent

psychological studies have shown that

multi-tasking does not actually save

time. In fact, the opposite is often true.

You lose time when switching from one

task to another, resulting in a loss of

productivity. Routine multi-tasking may

lead to difficulty in concentrating and

maintaining focus when needed.

IMPORTANT STEPS TO

SUCCESSFUL TIME MANAGEMENT

1. Clarify your objectives. Put them in

writing. Then set your priorities. Make

sure you‘re getting what you really

want out of life.

2. Focus on objectives, not on activities.

Your most important activities are

those that help you accomplish your

objectives.

3. Set at least one major objective each

day and achieve it.

4. Record a time log periodically to

analyze how you use your time, and

keep bad time habits out of your life.

5. Analyze everything you do in terms of

your objectives. Find out what you do,

when you do it, why you do it. Ask

yourself what would happen if you

didn‘t do it. If the answer is nothing,

then stop doing it.

6. Eliminate at least one time-waster from

your life each week.

7. Plan your time. Write out a plan for

each week. Ask yourself what you

hope to accomplish by the end of the

week and what you will need to do to

achieve those results.

8. Make a to-do list every day. Be sure it

includes your daily objectives,

priorities, and time estimates, not just

random activities.

9. Schedule your time every day to make

sure you accomplish the most

important things first. Be sure to leave

room for the unexpected and for

interruptions. But remember that things

that are scheduled have a better chance

of working out than things that are

unscheduled.

10. Make sure that the first hour of your

workday is productive.

11. Set time limits for every task you

undertake.

12. Take the time to do it right the first

time. You won‘t have to waste time

doing it over.

13. Eliminate recurring crises from your

life. Find out why things keep going

wrong. Learn to pro act instead of

react.

14. Institute a quiet hour in your day a

block of uninterrupted time for your

most important tasks.

15. Develop the habit of finishing what

you start. Don‘t jump from one thing

to another, leaving a string of

unfinished tasks behind you.

16. Conquer procrastination. Learn to do it

now.




17. Make better time management a daily

habit. Set your objectives, clarify your

priorities, plan and schedule your time.

Do first things first. Resist your

impulses to do unscheduled tasks.

Review your activities.

18. Never spend time on less important

things when you could be spending it

on more important things.

19. Take time for you time to dream, time

to relax, and time to live.

20. Develop a personal philosophy of time

what time means to you and how time

relates to your life.

CONCLUSION

Regardless of the time

management strategies you use, you

should take time to evaluate how they have

worked for you. Ask yourself a few simple

questions: Do you have a healthy balance

between work and home life? Are you

accomplishing the tasks that are most

important in your life? Are you investing

enough time in your own personal

wellbeing? If the answer is ―no‖ to any of

these questions, then reconsider your time

management strategies and select ones that

work better for you. Remember that

successful time management today can

result in greater personal happiness;

greater accomplishments at home and at

work, increased productivity, and a more

satisfying future.

REFERENCES

1. Covey, S. R. (1989). The 7 habits of

highly effective people. New York.

2. Nadeau, K. G. (1996). Adventures in

fast forward: Life, love and work for

the ADD adult. New York.

3. Robin, A. L. (2002). Lifestyle issues.

In S. Goldstein & A. Teeter Ellison

(Eds.), Clinician‘s guide to adult

ADHD: Assessment and intervention

(pp. 280-291). New York.

4. Barkley, R.A. & Gordon, M. (2002),

Assessment and intervention (pp. 43-

69). New York.

5. Beckwith, S. (2006, July). Unleash

Your PDA‘s Power. Black Enterprise,

36(12), 66.

6. Covey, S. R., Merrill, A. R., & Merrill,

R. R. (1994). First Things First: To

Live, to Love, to Learn, to Leave a

Legacy. New York.

7. Dodd, P., & Sundheim, D. (2005). The

25 Best Time Management Tools and

Techniques: How to Get More Done

Without Driving Yourself Crazy. Ann

Arbor, MI: Peak Performance Press,

Inc.

8. Successful Time Management, MTD

Training & Ventus Publishing Aps,

2010, ISBN-978-87-7681-662-9

9. www.plannerpads.com

10. www.davidco.com

11. www.mindtools.com

12. www.timetimer.com

http://www.plannerpads.com/

http://www.davidco.com/

http://www.mindtools.com/

http://www.timetimer.com/




DIRECT BENEFITS TRANSFER (DBT) IN INDIA: ISSUES AND CHALLENGES

DR. A. A.JAGADALE Assistant Professor

Arts, Com. & Science College, Narayangaon,

Tal: Junnar, Dist: Pune, Pin: 410504, Maharashtra, India.

Abstract

Direct Benefits Transfer (DBT), as a new public policy, has been acknowledged by

various segments of the society as an initiative for inclusiveness. It is a mechanism through

which the target beneficiaries will get the subsidy amount in cash that shall be credited

directly to their accounts by linking all the transactions to Aadhaar. DBT envisages a switch

from the present subsidy scheme to transfer of benefits directly to Aadhaar seeded bank

accounts of the beneficiaries. It is an earnest endeavour to streamline the subsidy mechanism

in India. The scheme has potential to control much rooted corruption in public distribution

system, by reducing the intermediate cost, by improving the efficiency of the delivery system

and by getting rid of the misuse of funds. Its success, in fact depends upon institutional and

infrastructural development in the rural and urban as well through which the scheme can be

better implemented. DBT should be leak proof and free from other malpractices and

irregularities and needs to be implemented effectively and should concede all kind of policy

reforms in the decision making process. As a comprehensive socio-economic protection

package, DBT will certainly fulfill the living expectation of the government and people

specially the deprived and hapless through „Aap Ka Paisa Aap Ke Haath‟.

Key words: Direct Benefits Transfer, Public Policy, Subsidy, Mechanism and Malpractices

Introduction

Public policy and its implications

have a tremendous impact on our economic

growth, and social developments world

over. However, these policies need to be

refurbished and customized to meet the

current and evolving needs of the people.

Thus, in the rapidly changing environment,

understanding and evaluating public policies

and other developmental issues; are cardinal

and crucial for an inspiring and fulfilling

public life. The onus of evolving meaningful

public policies lies with the government, but

judging their effectiveness and utility lies in

the realm of researchers. The policy debate

is not about the choice between good or bad

policy but is rather regarding the assessment

of their positivity and effectiveness over one

another. This will persist, especially when

the new policy overtakes the old and hence

debate and discussion will continue to incite

the matter unless implemented and

evaluated in the context of set goals and

welfare objectives. Policy matrix which is

the corner stone of policy decision making

process, must delve exclusively into the

issues, consequences of the policy

outcomes. The direct benefits transfer as a

substitute to the traditional subsidy scheme

and as a policy alternative, always has effect

on the masses especially on the deprived and

marginalized.

Objectives of the Study

1. The main objective of the study is to

understand the concept of Direct

Benefits Transfer.

2. To study the expanded scope of Direct

Benefits Transfer in India.

3. To study the benefits of Direct Benefits

Transfer.

4. To study the core concerns and

Challenges of Direct Benefits Transfer

in India


The present research study uses the

most recent available published secondary

data. To achieve the above stated objectives,

the secondary data was used. The secondary




data that are mainly used are published in

annual reports of various organizations and

survey reports of leading business

magazines. For the said research study the

secondary data is also collected from the

various National and International Research


Management, Marketing and Finance. For

the said research study the data pertaining to

the above objectives was collected and

reviewed the literature on the topic

concerned. The literature was thus collected

by visiting various libraries. The Secondary

data is also collected from various websites.

Overview of Direct Benefits Transfer

(DBT) In India

The praxis of policy should be

designed after understanding the needs and

aspirations of the economy, in context of

socio-economic environment and public

welfare. Direct Benefits Transfer, as a new

policy framework, has been acknowledged

from various corners as the demand of the

day. It is a process through which the target

beneficiaries will get the subsidy amount in

cash that shall be directly credited to their

accounts by linking transactions to Aadhaar.

Cash amount is calculated by finding the

difference between the market price and

subsidized price in proportion to the quantity

purchased from the market. It is an earnest

endeavor to streamline the subsidy

mechanism in India. The scheme has

potential to control much rooted corruption

in public distribution system, by reducing

the intermediate cost, improving the

efficiency in delivery system and by

eliminating the misuse of funds and reduce

the role of petty politician and other

intermediaries. This will definitely reduce

the delivery cost and subsidy bills by better

targeting and putting off various

malpractices and irregularities. The scheme

may not fully eliminate the bottlenecks and

constraints in the process but will certainly

bring paramount changes in the delivery

system. It will prevent growth of black

marketing as well as growth of secondary

market. DBT as a concept has been

borrowed from Latin America and translated

according to the need and context of socio-

economic environment of India. This policy

has been time tested and a few countries

have already adopted DBT apart from Latin

America, and have experienced a mix bag of

effects on their people and economy. The

scheme has to be framed and implemented

with a few institutional and infrastructural

amendments and moreover firm

improvement is required to make it more

effective and efficient. Even then, coming

out with such a contemplative programme,

Government of India intends to nullify the

challenges that are inherent in the previous

policy and is trying to enhance the benefits

directly to the people by implementing

DBT.

Expanded scope of Direct Benefits

Transfer

Direct benefit Transfer (DBT) is an

ambitious scheme, launched by the Union

Government which aims to eliminate

poverty from the country and improve the

economic standard of individuals and their

families. As per this scheme, money is

transferred directly into bank accounts of the

beneficiaries in the form of subsidies on

LPG and Kerosene, pension payments,

scholarships and employment guarantee

scheme payments etc. Basic idea behind

DBT is to cut down wastage, duplication

and leakages and to enhance efficiency.

Expanded scope of DBT

Cash

Transfer to

Individual

Beneficiary

E.g: PAHAL

In-kind

Transfer

to

Individual

Beneficiar

y

E.g: PDS

Other

Transfer/

Processes

E.g: ASHA

Subsidy

Schemes

Welfare

schemes

with

Cash

Compone

nts

Stipends

&

In-kind

goods/

products

Training

& Skills

Develop

ment

More

example

s

Payments

to service

enablers

Payments

to third

parties for

providing

services

Examples

Aanganwa




Scholarshi

ps

Cash

Awards

for

excellence

Pensions

& Cash

Benefits

Mid- day

Meal

Swachh

Bharat

Digital

Sakshart

a

Abhiyan

di workers

NGOs

Direct Benefits Transfer (DBT): Benefits

Any paradigms shift in policy that has

benefited the masses socially and

economically, has always got the top

priority in the developmental agenda of a

country. The three ‗f‘ i.e. funds, functions,

and functionaries are not optimally operated

during the traditional subsidy scheme

through PDS; which leads to leakage of

benefits that is unable to percolate among

the masses. To overcome such constraints

and challenges in the process, DBT has been

acknowledged as an upgraded scheme than

the before.

1. Benefits transfer is the part of the

iceberg but its positive effects can be

understood in a better manner only when

the spending pattern and socio-economic

behavior of the beneficiaries will be

tested from time to time.

2. This can be successfully implemented

because it is globally tested in the line of

developing nations. Also, it will be more

effective as this scheme has been already

been evaluated and verified through

various pilot projects.

3. This scheme definitely gives an impetus

to much talked error-free inclusive

development especially in the context of

development of poor and unprivileged

sections. It will definitely bring down

the corruption and improve the new

public distribution system by eliminating

the intermediaries and limiting the

political interference.

4. Injection of purchasing power may result

in multiplier effects through which more

income and employment can be

generated by boosting indigenous

demand in the rural sector.

5. Recent media hype and socio-political

policy debate brought an unprecedented

awareness among the public and will

definitely disseminate information

among the beneficiaries and will spread

public awareness to a great extent.

6. It will certainly inject money and the

purchasing power in rural sector in

particular. This will raise the standard of

living of rural people and will help in

controlling outward migration at a large.

This scheme will no doubt enhance the

purchasing power of the beneficiaries

and augmenting in developing a positive

approach in their spending habits.

7. Various flaws like duplication of work

and poor delivery system of the existing

scenario of subsidization can cause a

threat to PDS, but proposed plan of DBT

will reduce the gap and flaw in delivery

system through improved delivery

mechanism with the help of UIDAI.

Implementation of UIDAI card has

brought unprecedented transparency in

the administrative and delivery system.

Direct Benefits Transfer (DBT): Core

Concerns and Challenges

Although the scheme comes with

best of intentions, there is a spring of

―impractical idealism‖ in the way proposal

has been drafted and no fool proof measures

have been taken to cater the benefits as

desired and perceived.

a) The population of various states, those

are staying in remote villages, mainly

consists of farmers, labourers and tribal

people. They may refrain from gaining

the benefits from BT as desired because

they lack modern day facilities like

banking, electricity and proper

connectivity. This may pose a threat in

implementation of the schemes in these

areas.

b) Identification of target demography is

the biggest challenge in our country,

hence precautionary step has to be taken

by administrative machinery of each

state while issuing the UID card, or

otherwise DBT scheme will become

futile.




c) Studies conducted by various NGOs and

research organizations reveals that

people of states like Bihar, Odisha and

Madhya Pradesh prefer food to cash.

Besides this, the research revealed that it

was mostly female who preferred food to

cash than their male counterpart.

d) Lack of awareness and information

among the beneficiaries may pose threat

to the success of this scheme. Lack of

understanding about the programme

among rural masses and other

beneficiaries may lead to financial

malpractices and irregularities at the

point of delivery of services at the grass

root level.

e) Error of inclusion and error of exclusion

in the process of identifying poor is the

serious concern for the policy makers

which cause serious leakages and

infiltrations in various schemes.

Furthermore, various committee reports

and planning commission reports on

defining poverty and poverty line is also

cause policy debate and create serious

threat in implementing the program.

f) Bulk purchase from the native farmers

and venders which was in earlier

provision of PDS has supported the fact

with perennial demand and desired price.

But the scenario is changing because

Direct Benefits Transfer is acting as a

substitute of food to cash.

g) The scheme much talks about the

operational efficiency and

implementation than the public needs

and the wellbeing of the people. Besides,

this scheme may not necessarily bring

benefits to all the segments as desired

due to multiplicity of culture, tradition,

location and literacy rate of various

states.

h) The economic effects of the scheme may

prompt and motivate unnecessary

consumption and may encourage people

to refrain from work and prefer leisure to

work and may disrupt productive

activities.

i) The scheme is implemented through an

UID card; hence its success depends

upon how effectively the government

addresses the issue of UID cards. Studies

conducted so far on UID card reveals

that there is a delay in delivering the

cards to their owners. Many of the

entitled beneficiaries have not received

the card till date which is causing serious

implementation challenge for the

scheme.

j) Although constructive criticism is going

on, still this endeavor of the government

and its resultant benefits can only be

better harvested only when all the state

governments and other stakeholders will

show their contribution and commitment

in the scheme.

Significant Suggestions

1. There is a need to promote financial

literacy among the rural poor and

inculcate banking habits among them for

the success of this scheme.

2. The entire process of fund transfer should

be automatic and error-free; otherwise

rent seeking behavior of the delivery

agents or officials may crop up in the

name of facilitating services to the

ultimate beneficiaries.

3. There is a need to evaluate the tradeoff

benefits between existing subsidy

schemes and DBT in a scientific manner,

so as to assess the degree of success and

to measures the effectiveness of the

program.

4. There should not be any unnecessary

delay and harassment at the time of cash

withdrawal by the beneficiaries,

otherwise dishonesty will emerged and

the system will become auto-defective.

5. Need of political consensus among

various political parties and a touch of

expertise in shaping the policy, to make

it a socially viable option.

6. Any decision taken at macro level must

act rationally and should exercise

various test on available alternatives to

cater the need of the nation.

7. Only the involvement of civil society and

NGO‘s in the scheme can make DBT an

effective scheme.




Conclusions

As a comprehensive socio-economic

protection package, DBT will certainly

fulfill the living expectation of the

government and people specially the

deprived and hapless through ‗Aap Ka Paisa

Aap Ke Haath‘. We hope more schemes

shall be covered under DBT and the whole

country and its people will get the benefits

directly without any delay or deficiencies.

However, just creation of system, structure

and institutions for better economic

development by providing autonomy

through decentralization and participatory

management of various schemes is not

enough rather to create a sustainable people-

centered environment in which the various

segments of the society can exercise their

voice and choice and will get the benefits

from the schemes. The beneficiaries should

understand and enjoy their rights and can get

involved in the decision making process for

better inclusiveness. In fact, democracy

loses its shine if the poorer and the deprived

masses of a country are not able to share the

progress and prosperity generated by that

country, which is visible in various sectors.

Hence; deliberate effort has to be made by

the government in various quarters of

planning for the betterment of deprived and

hapless segments of the society. In this

regards, DBT is a welcome step in creating

enabling environment where people would

enjoy long, healthy and creative lives.

References

1. PPT, Direct Benefits Transfer (System,

Key Steps, Operation, Schemes), For

Conference of District Collectors on

Direct Benefit Transfer (DBT), Phase II

Rollout, Planning Commission,

Government of India, 29th April, 2013.

2. Devesh Kapur, P. M. 2008. More on

direct cash transfers. Economic &

Political Weekly, 85-87.

3. Dr. Amiya Kumar Mohapatra, Direct

Benefits Transfer (DBT) In India: An

Initiative for Inclusiveness, International

Journal of Technical Research and

Applications e-ISSN: 2320 -8163,

Special Issue 21 (July, 2015), PP. 5-8.

4. International Food Policy Research

Institute. 2012, Global hunger Index- the

challenge of hunger, ensuring

sustainatale food security under land,

water and energy stresses.

5. Hand Book on Direct Benefit Transfer,

Planning Commission, Government of

India, 2013.

6. Laura, B. Rawlings., a. G. 2005.

Evaluating the impact of conditional

cash transfer programs. The World Bank

Research Observer, 20(1), 29-55.

7. Kannan, K. P., S. M. 2000. Concerns on

food security. Economic and Political

Weekly, 35(45), 3919-3922.

8. Information and Guidance, Direct

Benefits Transfer (DBT), Planning

Commission, GOI.

9. Jha, P. a. 2013. Securing food for all is it

really difficult to afford. Economic and

Political Weekly, XLVIII (4).

10. Das, Jishnu, Q.T. D. 2005. Reassessing

conditional cash transfer programs. The

World Bank Research Observer, 20(1),

57-80.

11. Direct Benefits Transfer Scheme Docs. /

Pdf -Government of India.

12. Bryant J. H. 2009. Health Kenya's Cash

transfer program: protecting the health

and human rights of orphans and

vulnerable children. Health and Human

Righis, 11(2).

13. www.dbtportal.nic.in

14. www.planningcommission.nic.in.

http://www.dbtportal.nic.in/




M-COMMERCE & ITS APPLICABILITY

DR.REKHA APPASAHEB KADHANE

Assistant Professor & Faculty Incharge

Adv.M.N.Deshmukh Arts, Science &Commerce College Rajur,

Tal-Akole, Dist-A‘Nagar, Maharashtra.

Introduction

‗Commerce‘ is the trading of

‗something‘ of value between two entities.

That ‗something‘ may be goods, services,

information, money, or anything else the two

entities consider to have value.1 Trading was

the main facility in earlier times with barter

facility for goods and services. Later,

currency was introduced as standardized

money to facilitate a wider exchange of

goods and services. Today‘s era is an

information era and the world is passing

through an Information revolution. One of

the profound consequences of the

information revolution is its influence on

how economic value is created and

extracted. Today the information is more

easily accessed, absorbed, arranged and is

priced in different ways. Markets are

expanding from regional to global.

Knowledge is replacing land, labour and

capital as the key value driver. Intelligent

networks and virtual spaces are limiting the

need for surface and air travel. With the

technological progression particularly in

computers and Internet field has led to the

birth of electronic commerce (e-commerce)

which enabled the business processes to be

more simplified, efficient, quick and

accurate resulting in improved productivity

with higher satisfaction level to the

customers. Also, improved Processes

resulted in reduced cost of production and

transaction cost and Therefore the

profitability of businesses increased

manifolds. The emerging Wireless and

mobile networks have added another

dimension of mobility and extended e-

commerce to another research and

application subject called Mobile Commerce

popularly known as M-Commerce.

M-Commerce is the buying and

selling of goods and services through

wireless handheld devices such as mobile

telephone and personal digital assistants

(PDAs).2 M-Commerce is a platform where

a mobile customer can avail various banking

and other related commercial facilities

through his mobile phone. M Commerce is

not the transaction itself. It provides services

and information, which can trigger a future

transaction. The scope of M-Commerce

therefore goes beyond the initial one time

commercial transaction. The main areas of

M Commerce use are in text messaging or

SMS, mobile payment, financial &banking

services, logistics, goods/services buy/sell,

information services and wireless customer

relationship management etc.

Objectives: -

1. To study Concept of M commerce

2. To study Benefits of M-commerce

3. To study Types of M-Commerce

Key words:- M commerce, M banking, E-

Money

Research Methodology:- Secondary data is

use for this research. Information collected

from various Books, Periodicals & Webs.

Benefits of M-Commerce:

The benefits of M-Commerce with

respect to customers, merchants and banks

are as below:

1. Ubiquitous Personalized service –

anywhere, anytime

2. Remote payment for utility bills,

insurance premiums, Credit card, bills,

EMIs etc

3. Integration with existing payment

systems e.g. Credit/debit card payment

option

4. Promotion of Location based services

5. Faster transaction time




6. New business opportunities for

stakeholders

7. Point of Sale(POS) device may not

require

8. Branding and business opportunities for

banks

9. Higher volume in banking with less cash

transaction

10. Penetration into cash dominated category

11. Help developing customer loyalty

12. Reduction in cost of infrastructure and

usages

M-Commerce Services – Concept:-

M-Commerce Services Infrastructure

to change the scenario of retail Applications

adopting Wireless Technology on GSM /

CDMA. Ready platform is offered for

deploying M Commerce Services by

different organizations like:

a. Banks and Financial Institutes

b. Cellular Operators

c. Government

d. Loyalty Providers

e. Various Corporate

M-Commerce Infrastructure

integrates front end applications, like

Wireless Point of Sale Terminals, Micro

Finance, vCash, e-purse, Bill Payment,

Prepaid Top up Vouchers, Vending Machine

operation, e-Governance etc. offered by

different organizations with backend

applications offered by other organizations,

required to establish the working model.

Being a manufacturer, E Cube India offers

different hardware to support the

applications desired by the client.

Types of M-Commerce:-

The M-Commerce can be classified

broadly in the three main categories:-3

1.M-Payment: Through Credit/debit

cards: Mobile phones linked to credit/debit

cards can be used to make payments. e.g. M-

payment applications like mChek etc.

2.E-Money:Cash loaded in the mobile

phones. Consumers use this virtual cash as

real value for all types of transactions. E.g.

Prepaid cash card, recharge voucher amount

etc.

3.M-Banking:Mobile phone used for

accessing the bank accounts. All payments

are routed through the bank. e.g. Balance

query, share trading alert, banking

transactions etc.

M-Banking platforms/services agencies:-

The M-Commerce/M-Banking

services are run by many Mobile banking

application service providers with their tie-

ups with banks and the telecom service

providers. Different technologies and types

of applications are available from them on

the mobile platform; each offering a matrix

of advantages and disadvantages, especially

when the needs of the disadvantaged

segments are taken into consideration. Some

of the names of M-Commerce

platforms/services are mChek, etc. From

these platforms like m-check, ngpay require

Java enabled handsets & GPRS facility to

operate M-Commerce, while platform like

PayMatedoes not require these. Most of the

M-Banking transactions are between the

bank accounts of the customers. Some of the

platform like ‗Green Money transfer ‗allows

person to person transfer through their bank

accounts. Bharat Sanchar Nigam Limited

(BSNL) has also plans to launch a mobile

banking platform with the help of

Department of Post wherein a mobile

subscriber will be able to send money orders

electronically through SMSs which will be

encashable at all post offices in the country.

Existing framework for M-Banking:

Practically, Indore has implemented

M-Banking services. Following are the

guidelines given by RBI.

1. Transaction limit: Banks are now

permitted to offer this service to their

customers subject to a daily cap of Rs

50,000/- per customer for both funds transfer

and transactions involving purchase of

goods/services. Presently, such transactions

are subject to separate caps of Rs 5000/- and

Rs 10000/ -respectively.

2. Technology and Security Standard:

Transactions up to Rs 1000/- can be

facilitated by banks without end-to-end

encryption. The risk aspects involved in such

transactions may be addressed by the banks

through adequate security measures.




3. Remittance of funds for disbursement

in cash: In order to facilitate the use of

mobile phones for remittance of cash, banks

are permitted to provide fund transfer

services which facilitate transfer of funds

from the accounts of their customers for

delivery in cash to the recipients. The

disbursal of funds to recipients of such

services can be facilitated at ATMs or

through any agent(s) appointed by the bank

as business correspondents. Such fund

transfer service shall be provided by banks

subject to the following conditions:-

a) The maximum value of such transfers

shall be Rs 5000/- per transaction.

b) Banks may place suitable cap on the

velocity of such transactions, subject to a

maximum value of Rs 25,000/- per

month, per customer.

c) The disbursal of funds at the agent/ATM

shall be permitted only after

identification of the recipient. In this

connection, attention of banks is drawn

to the provisions of the Notification

dated November 12, 2009, issued by

Government of India, under Prevention

of Money Laundering Act, 2002, as

amended from time to time.

d) Banks may carry out proper due

diligence of the persons before

appointing them as authorized agents for

such services.

e) Banks shall be responsible as principals

for all the acts of omission or

commission of their agents.

4. Mobile Payment (m-payment) Solutions

There are broadly three different

models available for m-payment solutions on

the basis of payment:

• Bank account/debit card based

• Credit card based

• Telecommunication company billing based

7. Bank Account/Debit based m-payment

In this model, the bank account/debit

card is linked to the mobile phone number of

the customer. When the customer makes an

m-payment transaction with a 5 MPFI -

Mobile Payment Forum of India merchant,

the amount from the bank account of the

customer is debited and the value is credited

to the merchant account.

8. Credit Card based M-Payment

In the credit card based model, the

credit card number is linked to the mobile

phone number of the customer. When the

customer makes an m-payment transaction

with a merchant, the credit card is charged

and the value is credited to the merchant

account. Credit card based solutions have the

limitation that it is heavily dependent on the

level of penetration of credit cards in the

country.

Applications of M-Commerce:-

Various applications of Mobile Commerce6

are given the below Table:-

Mobile

banking

Mobile Accounting

Mobile online stock

transaction

Mobile banking

information

Payment for insurance,

recharge coupons etc

Mobile

information

services

Current affairs

Tour and travel

information

Mobile search engines

and directories

Mobile

shopping

Purchase of goods and

services

Content purchase &

delivery

Mobile

ticketing

Sports and cultural

events

Cinema Tickets

Mobile

marketing

Mobile coupons

Mobile newsletters

Mobile

entertainment

Mobile Gaming

Download of music,

video and ring tones

Location based

entertainment services

For Mobile Commerce is an evolving

area of e-Commerce, where users can

interact with the service providers through a

mobile and wireless network, using mobile

devices for information retrieval and

transaction processing. M-Commerce




services and applications can be adopted

through different wireless and mobile

networks, with the aid of several mobile

devices. However, constraints of both

mobile networks and devices influence their

operational performance; therefore, there is a

strong need for taking into consideration

those constraints in the design and

development phases of M-Commerce

services and applications. Another important

factor in designing M-Commerce services

and applications is the identification of

mobile users requirements. Furthermore, M-

Commerce services and applications need to

be classified based on the functionality they

provide to the mobile users. This kind of

classification results in two major classes:

the directory and the transaction-oriented

services and applications. This paper

suggests adoption, analysis and impact of M-

Commerce services and applications in

India. This approach relies on mobile user‘s

needs and requirements, the classification of

the M-Commerce services and applications,

as well as the current technologies and

wireless computing and their constraints.

Mobile Commerce is about the purchase and

sale of goods and services through the

mobile devices such as cell phone, laptop

etc. with the involvement of a financial

institution. Mobile Commerce includes the

following:

a) Travel and Ticketing

b) Movie Ticketing

c) Bill payments to utility and service

companies

d) Merchant & Retail Transactions

e) Money Transfer

Growth of Mobile Commerce:-

Mobile Commerce services are

evolving rapidly due to the coming together

of mobile service providers, banks and

payment service providers to offer more

products and secure transactions through

mobile networks. While e-Commerce is

limited to PC users only, Mobile Commerce

is open to almost everyone with a cell phone

and mobile connection. Mobile Commerce is

expected to grow because the mobile usage

and ownership penetration is more than 4 to

5 times than a PC and growing at a very fast

rate. With Mobile Commerce offerings

expanding, customers have the hand-held

convenience of using their mobile phones for

making payments for taxi fares and

recharging prepaid phone cards.

Emerging Services of Mobile Commerce:-

a) Increased mobile penetration and use of

GPRS on handsets has resulted in the

digital downloads market to cross

Rs.4.34 Billion by end of March 2012,

which will definitely increases in future.

b) Monetary transfers or transactions

through mobile phones are found to be

much cheaper than traditional bank

transfers as the transaction costs are

much lower in the former.

c) Innovative solutions for daily use such

as payment of auto or taxi fares

d) Inter-bank transfers services are also on

the anvil. ICICI Bank Ltd, India‘s

largest private bank, has already started

offering all its services through mobile

phones (called mobile banking) since

January 2012. Standard Chartered bank

has launched a service that enables

money transfer from any ATM to any

mobile phone across the country. The

recipient receives a pin number on his

or her mobile phone and the sender has

to convey the order number to the

recipient. Using these two the recipient

can withdraw money from the bank‘s

ATM‘s.

e) Feasibility studies are being

conducted to offer Mobile Commerce to

microfinance firms to enable them collect

payments from remote areas. The M-

Commerce/M-Banking services are run by

many Mobile banking application service

providers with their tie-ups with banks and

the telecom service providers. Different

technologies and types of applications are

available from them on the mobile platform;

each offering a matrix of advantages and

disadvantages, especially when the needs of

the disadvantaged segments are taken into

consideration. Some of the names of M-

Commerce platforms/services are mChek,

ngpay etc. From these platforms like m-




check, ngpay, require Java enabled handsets

& GPRS facility to operate M-Commerce,

while platform like PayMate does not

require these. Most of the M-Banking

transactions are between the bank accounts

of the customers. Some of the platform like

‗Green Money transfer‘ allows person to

person transfer through their bank accounts.

Bharat Sanchar Nigam Limited (BSNL) has

also plans to launch a mobile banking

platform with the help of Department of Post

wherein a mobile subscriber will be able to

send money orders electronically through

SMSs which will be in cashable at all post

offices in the country.

Conclusion

Mobile Commerce is an evolving

area of e-Commerce, where users can

interact with the service providers through a

mobile and wireless network, using mobile

devices for information retrieval and

transaction processing. M-Commerce

services and applications can be adopted

through different wireless and mobile

networks, with the aid of several mobile

devices. However, constraints of both

mobile networks and devices influence their

operational performance; therefore, there is a

strong need for taking into consideration

those constraints in the design and

development phases of M-Commerce

services and applications. Another important

factor in designing M-Commerce services

and applications is the identification of

mobile users requirements. Furthermore, M-

Commerce services and applications need to

be classified based on the functionality they

provide to the mobile users. This kind of

classification results in two major classes:

the directory and the transaction-oriented

services and applications. This paper

suggests adoption, analysis and impact of M-

Commerce services and applications in

India.

Reference

1. http://www.gvsu.edu/business/ijec/v8n3/

p007.html

2. Reserve Bank of India [www.rbi.org.in]

3. www.mpf.org.in




RECENT TRENDS IN BANKING TECHNOLOGY

DR. PAWAR SUNIL DADARAM

Acting Principal,

Arts Commerce And Science College, Dehane,

Tal-Khed Dist-Pune, Maharashtra.

ABSTRACT

The Banking Industry the experienced a Series of Significant transformation in the

last few decades among the most important of them in the change in type of organization that

dominate the landscape. Today we are having a fairly well developed Banking system with

different Classes of banks-Public sector banks, Foreign banks, Regional rural banks, Co-

operative banks with the RBI as the Fountain head of the system there has been an

unprecedented growth and diversification of banking industry. The Banking industry is

undergoing paradigm shift in scope, context, Structure, Functions and governance. The

information and Communication technology revolution is radically changing the operational

environment of the banks.

Keywords - E-Banking, ATM, IT, Recent Trends in Banking.

Introduction:-

As the banking sector has been

silently innovating and with the advent of

technological development economic and

financial sector reform introduced in the area

of telecommunication and information

technology one such innovating in e –

banking. The Banking sector plays a very

significant role in economic development in

India. It is a central to a nation‘s economy as

it caters to the needs of credit for all the

Sections of the society. From the beginning

of 20th

century the Banking Sector grown

sizably. The British Government attention on

the need for organized banking sector in the

country and the set-up Reserve Bank of

India which is working as a central Bank of

India which is working as a central bank. It

is regulative authority of the Banking Sector.

Though Commercial banking of the western

type was developed during the British rule,

banking as such has not been unknown to

India from very ancient days indigenous

banking as different from the modern

western banking had been organized in the

Form of individual business.

This was due to planned economic

growth, increase in money supply, growth,

increase in money supply, Growth of

banking habit, control and guidance by the

RBI and above a nationalization of banks. In

1991 Govt. of India introduced a new

economic policy. Current banking sector has

come up with a lot of initiatives that oriented

to providing a better customer services with

the help of new technologies. Banking

sector mirrors the larger economy its

linkages to all sector make it proxy for what

is happening in the economy as a whole. In

the competitive banking word improvement

day by day in customer service is most

useful tool for their better growth bank

offers. So many changes to access their

banking and other services

Objective of study –

1. To study the opportunities the banks in

changing banking scenario

2. T

o study the recent trends in banking

3. To study the use of information

technology in banking

4. To explain the recent trade in changing

in banking scenario

Method Of study

This study is best on the analysis of

the banking scenario in India and the recent

trade and trades opportunities in the banking.

With the help of secondary data collection.

The secondary sources of data are banking

books, annual reports of RBI, Newspaper,

Magazine, Journals, Books, The Present

study is descriptive in nature .




Recent Trends in banking

1. Automated Teller machine (ATM)-

ATM is the most popular device in India.

Which enables the customer to with draw

their money 24 hours a day 7 week

ATM are emerging as the most useful

tool unsure any theme banking and

anywhere banking or anytime money

ATM offers benefits to banks in the form

of extended hours services improved

customer service larger penetration, less

crowding at the bank counter cost

reduction.

2. Real Time Gross Settlement (RTGS)-

RTGS introduced in India Since March

4th

is system throw which electronics

instruction can be given by banks to

transfer fund from their accounts to off

another bank the RTGS system is

maintained and operated by the RBI and

provide a means of efficient faster funds

Transfer among banks facilities there a

financial operations as the name

suggested funds transfer between bank

take place on real time basis.

3. Tele Banking-The Tele banking service

allows the customer the interface throw

telephone customer can perform a

number of transactions from convenience

office own home or office facilities

offered by telebanking are information

on balance claque book requisition

money transfer, queries on services

4. Electronic Fund Transfer (EFT)-The

EFT automatically transfer money from

one account to another under EFT the

sender and receiver of funds may be

located indifferent cities and may even

bank with difference bank.

5. Electronics Clearing Service (ECS)-

ECS is the mode of payment of were by

an institution makes large number of

payment like interest divided salary

Pension large of numbers of Share

holders, employs etc. can make the

payment electronically ECS Scheme

helps utility instruction insurance

companies credit card and finance

companies to collect the proceed of

telephone bills insurance premier etc.

6. Internet Banking-Internet banking

unable customer to do banking

transaction through the banks website on

the internet under internet banking

services such as product information

application forms accounts balance

enquiry fund transfer etc. are provided

by the bank through the internet.

7. Mobile Banking-Everybody with a

mobile phone can access banking

services Irrespective of their location it

is an extension of internet banking if

provides services like account balance

mobile alert about credit card and debit

card , mini account statement etc.

Conclusion

Information technology plays vital

role in the world. Many changes have been

occurring in society with the IT. There are

several things discuses to consider. E

Banking is an umbrella system which is easy

to understand, easy to define comparative

study of Indian Banking sectors like as

public sector, private sector and other sectors

growing rapid is services because no need to

visit bank for each and every queries.

Customer get solution of its problem through

online bank, Mobile banks, internet bank and

other banking service channel.

Reference

1. A.S. Agrawal, ‗Indian Economy‘ New

age international Publication 2016.

2. www.indianresearchjournals.com

3. RBI Reports of trends and Progress of

Banking.

4. S.Natarajan, Dr.R.Parameshwaran,

‗Indian Banking, Chand Publication

2016.

5. RBI Annual Report 2012, 2013, 2014.




TIME MANAGEMENT –IMPORTANT TIPS OF TIME MANAGEMENT

PRANITA P.SAHANE

College of ABM,

Gunjalwadi Pathar, Sangamner, Maharashtra.

GOVIND H.SONAWANE

College of ABM,

Gunjalwadi Pathar, Sangamner, Maharashtra.

Abstract

Time management is important for your personal life and career success. It teaches

you how to manage your time effectively and make the most of it. Time management is not

very difficult as a concept, but it‟s surprisingly hard to do in practice. It requires the

investment of a little time upfront to prioritise and organise yourself. But once done, you will

find that with minor tweaks, your day, and indeed your week and month, fall into place in an

orderly fashion, with time for everything you need to do. The highest achievers manage their

time exceptionally well. By using the time-management techniques in this section, you can

improve your ability to function more effectively – even when time is tight and pressures are

high.

Key Words: Time, Career, management, Organise.

Introduction It is a set of principles, practices, skills, tools and systems that help you use your time

to accomplish what you want. It is rightly said ―Time and Tide wait for none.‖ An individual

should understand the value of time for him to succeed in all aspects of life. People who

waste time are the ones who fail to create an identify of their own. Time management is the

process of organizing and planning how much time you spend on specific activities. Invest

some time in our comprehensive collection of time management articles to learn about

managing your own time more efficiently, and save yourself time in the future.

Time managements include

Effective Planning

Setting deadlines

Prioritizing activities as

per their importance

Time Management

Setting Goals and

Objectives

Spending the right time

on the right activity Delegation of responsibilities




Importance of Time Management:

1. Time is a special resource that you cannot

store or save for later use. Everyone has the

exact same amount of time each day. Time

not well used cannot be retrieved.

2. Most people, feel like they have too much

to do and not enough time. They blame lack

of time for their poor finances, stress, bad

relationships, and for not exercising their

body.

Wise time management can help you find

the time for what you desire, and for what

you need to do.

3. You need time to get what you want out

of life. If you wait for extra time to appear,

you might lose the game of life. Through

right time management, you can ―create‖ the

time you need, and not just wait for it to

come. By planning your time wisely, you

will have more time to do more things.

4. Time management will help you set up

your priorities.

5. Time is limited to 24 hours a day, so plan

your life wisely.

6. Time management helps you make

conscious choices, so you can spend more of

your time doing things that are important

and valuable to you.

7. You can learn to find the time for the

things that are important to you. Even a

small amount of time once a day, or even

once a week, will take you closer to your

goals, and you will be surprised at the

progress you make.

8. You become more productive using

improved time management skills and tools,

and can accomplish more with less effort

and time. Time management can help you

reduce wasted time and energy, help you

become more creative and productive, and

enable you to do the right thing at the right

time. This will of course lead to more

balance and fulfilment in your life.

9. Life today presents so many distractions,

and therefore, it is very easy to lose time on

unimportant activities.

10. Life puts in front of everyone so many

choices each day, and the question is, do you

follow what appears on your way, or do you

consciously choose what you want to do?

11. A certain degree of detachment and

inner peace are useful in managing your

time effectively. They help you avoid

spending too much emotional and mental

energy on what people say and think about

you. They help you stay calm, despite

distractions or difficulties, and this saves

you a lot of time and energy, which you can

spend on better and more rewarding

activities.

Five Smart Tips for Time Management

1. Organize Your To-Do List:

Get your to-dos on paper. Keep a notepad or

note-taking application handy to jot down

everything you have to do as each occurs to

you. Then, organize your to-dos by type and

use a different paper or digital folder for

each such as ―follow up on‖ or ―people to

contact‖ or ―to read‖. Finally, schedule it.

Put each item on your calendar. Commit the

right amount of time on a specific day to

each task and you‘ll actually be able to

check them off. Just make sure you‘re not

making lists instead of tackling other

responsibilities.

2. Attack One Type of Action at a Time:

Flitting from making phone calls, to writing

proposals, to answering emails is less than

productive. Each type of action requires

your brain to switch gears, stop, then start

again on the new task. Try completing the

same types of tasks before moving to the

next. Make your phone calls, then answer

emails, then write proposals. You‘ll likely

save time and increase your productivity.

3. Eliminate Distractions:

You probably won‘t be able to eliminate all

interruptions. People still need your time

and attention through the day and you have

to respond to a crisis or unexpected need for

an immediate decision. But you can ―train‖

others to give you the time you need to get

your work done. Don‘t hesitate to block out

time not to be disturbed. Let your phone go

to voice mail. Turn off your email

notification and instant messaging. And

unless you need to be on social media for

your job, schedule a short block of time for

social networks – and stay off them

otherwise.




4. Plan For – and Take – Breaks:

It‘s important to relax throughout your day.

You‘ll actually return recharged and more

productive. Why not let that block of social

media time become one of the day‘s

scheduled breaks? And be flexible: you

don‘t need to handle each new task as it

comes in. Save up several routine, non-

deadline-driven items to tackle all at once

and you‘ll have more time to accomplish the

big things.

5. Communicate:

It‘s easy to let communication slide when

you‘re focusing on time management. But

don‘t forget to check in with others. Get in

the habit of asking yourself if whatever

you‘re doing is the best use of your time. If

not – shift to something else. Start recording

your thoughts, conversations and activities

so you can get an idea of exactly how much

of your day you spend on each. Schedule

time to communicate with others on high-

priority tasks and projects.

Planning & Time Management

Being flexible is good, but skills in

planning and time management will help

you meet your goals. It doesn‘t matter if

they are big, long-term goals like working

overseas, starting a family or trade, or going

to university, or more modest, short-term

goals such as making time to watch your

favourite show on Sunday night, getting to

training more often, starting a painting or

book, or saving money for a new iPod.

Planning is a great tool for helping you meet

your goals.

Time Management Tips

Identify Your Goals And Priorities

Analyze How You Are Currently

Spending Your Time

Match How You Are Using Your Time

With Your Priorities

Develop A Plan That Is Manageable

Review And Change Your Plan If

Necessary

Build In Some Activities That Energise

You And Make You Feel Good

Expect That Unexpected Things Can

Occur

Use Schedules/Diaries/ Reminder

Systems That Work For You

Think Helpfully

The Difference between Urgent and

Important

‗Urgent‘ tasks demand your

immediate attention, but whether you

actually give them that attention may or may

not matter.

'Important' tasks matter and not

doing them may have serious consequences

for you or others.

For example:

Answering the phone is urgent. If you

don‘t do it, the caller will ring off, and

you won‘t know why they called. It may,

however, be an automated voice telling

you that you may be eligible for

compensation for having been mis-sold

insurance. That‘s not important.

Going to the dentist regularly is

important (or so we‘re told). If you

don‘t, you may get gum disease, or other

problems. But it‘s not urgent. If you

leave it too long, however, it may

become urgent, because you may get

toothache.

Picking your children up from school is

both urgent and important. If you are not

there at the right time, they will be

waiting in the playground or the

classroom, worrying about where you

are.

Reading funny emails or checking

Facebook is neither urgent nor

important. So why is it the first thing

that you do each day? See our




page minimising distractions to help you

recognise and avoid other things that

may distract you from getting your

urgent and important tasks done.

This distinction between urgent and

important is the key to prioritising your time

and your workload, whether at work or at

home.

4 Ds of time management

1) Desire: An intense, burning desire to

control your time to achieve maximum

effectiveness.

2) Decision: a clear and firm decision that

you are going to practise good time

management till it becomes a habit.

3) Discipline: Discipline yourself to make

it a lifelong practice

4) Determination: Be willing to persist in

the midst of all the difficulties until you

become an effective time manager.

Reference

a. https://www.skillsyouneed.com/ps/time-

management.html

b. Planning and time management

c. 5 Smart Ways for Managers to Improve

Time Management

d. Importance of Time Management

by Remez Sasson

https://www.skillsyouneed.com/ps/minimise-distractions.html

https://www.skillsyouneed.com/ps/time-management.html

https://www.skillsyouneed.com/ps/time-management.html




CURRENT TRENDS IN STRESS MANAGEMENT

DR. B. A. SHELAR

K.K.W. College, Pimpalgaon(B),

Tal-Niphad, Nasik, Maharashtra.

Abstract

We‟ve been replacing the physical stressors of work with mental and emotional

stressors for many years. What‟s new is that we‟re hitting a resistance point. Many

people seem to be reaching a limit. In an increasingly friction-free economy, mental and

emotional health is the new wellness. Stress is a complex phenomenon. It has been defined

in many ways, but simply put; it is the wear and tear of everyday life. In every day‟s life

people are subjected to a wide range of pressures. Similarly there are also a wide range of

resources and strategies for coping with pressure. Sometimes people cope well and will not

feel that the pressure is having any adverse effect upon them. At other times they will have

difficulty in dealing with the situation and that is when we may use the term "stress".

Keyword- Stress Management, Depression, Polygraphs, Physical Manifestations, Meditation

Introduction

Stress management is a wide

spectrum of techniques

and psychotherapies aimed at controlling a

person's level of stress, especially chronic

stress, usually for the purpose of improving

everyday functioning. In this context, the

term 'stress' refers only to a stress with

significant negative consequences,

or distress in the terminology advocated

by Hans Selye, rather than what he

calls eustress, a stress whose consequences

are helpful or otherwise.

Stress produces numerous physical and

mental symptoms which vary according to

each individual's situational factors. These

can include physical health decline as well

as depression. The process of stress

management is named as one of the keys to

a happy and successful life in modern

society. Although life provides numerous

demands that can prove difficult to handle,

stress management provides a number of

ways to manage anxiety and maintain

overall well-being.Despite stress often being

thought of as a subjective experience, levels

of stress are readily measurable, using

various physiological tests, similar to those

used in polygraphs.

Ways to identify your stress:

1. Inability to Concentrate

2. Inability to Sleep

3. Inability to Relax

4. Physical Manifestations

Objectives of the study

1. To understand the concept of job stress

and its impact on employees.

2. To Know the factors influencing the job

stress of employees in the working

environment and correlation between

stressors.

3. To identify if there is any significance

difference between stress variable with

reference to gender category.

4. To identify measures to reduce stress, in

order to increase the skills of the

employees.

Why is it so important to manage stress?

If you‘re living with high levels of

stress, you‘re putting your entire well-being

at risk. Stress wreaks havoc on your

emotional equilibrium, as well as your

physical health. It narrows your ability to

think clearly, function effectively, and enjoy

life.

Effective stress management, on the other

hand, helps you break the hold stress has on

your life, so you can be happier, healthier,

and more productive. The ultimate goal is a

balanced life, with time for work,

relationships, relaxation, and fun—and the

resilience to hold up under pressure and

meet challenges head on. But stress

management is not one-size-fits-all. That‘s

https://en.wikipedia.org/wiki/Polygraph

https://en.wikipedia.org/wiki/Psychotherapy

https://en.wikipedia.org/wiki/Stress_(psychological)

https://en.wikipedia.org/wiki/Chronic_stress



https://en.wikipedia.org/wiki/Distress_(medicine)

https://en.wikipedia.org/wiki/Hans_Selye

https://en.wikipedia.org/wiki/Eustress

https://en.wikipedia.org/wiki/Depression_(mood)

https://en.wikipedia.org/wiki/Polygraph




why it‘s important to experiment and find

out what works best for you. The following

stress management tips can help you do that.

Why Stress occurs?

When you perceive that demands

placed on you such as work, school or

relationships exceed your ability to cope.

Some stress can be beneficial at times,

producing a boost that provides the drive

and energy to help people get through

situations like exams or work deadlines.

However, an extreme amount of stress can

have health consequences, affecting the

immune, cardiovascular and neuroen

docrine and central nervous systems, and

take a severe emotional toll. Untreated

chronic stress can result in serious health

conditions including anxiety, insomnia,

muscle pain, high blood pressure and a

weakened immune system. Research shows

that stress can contribute to the development

of major illnesses, such as heart disease,

depression and obesity. But by finding

positive, healthy ways to manage stress as it

occurs, many of these negative health

consequences can be reduced. Everyone is

different, and so are the ways they choose to

manage their stress. Some people prefer

pursuing hobbies such as gardening, playing

music and creating art, while others find

relief in more solitary activities: meditation,

yoga and walking.

Techniques to reduce Stress

Take a break from the stressor- It

may seem difficult to get away from a big

work project, a crying baby or a growing

credit card bill. But when you give yourself

permission to step away from it, you let

yourself have time to do something else,

which can help you have a new perspective

or practice techniques to feel less

overwhelmed. It‘s important to not avoid

your stress, but even just 20-minutes to take

care of yourself is helpful.

Smile and laugh- Our brains are

interconnected with our emotions and facial

expressions. When people are stressed, they

often hold a lot of the stress in their face. So

laughs or smiles can help relieve some of

that tension and improve the situation.

Get social support- Call a friend,

send an email. When you share your

concerns or feelings with another person, it

does help relieve stress. But it‘s important

that the person whom you talk to is someone

whom you trust and whom you feel can

understand and validate you. If your family

is a stressor, for example, it may not

alleviate your stress if you share your works

woes with one of them.

Meditate- Meditation and mindful

prayer help the mind and body to relax and

focus. Mindfulness can help people see new

perspectives, develop self-compassion and

forgiveness. When practicing a form of

mindfulness, people can release emotions

that may have been causing the body

physical stress. Much like exercise, research

has shown that even meditating briefly can

reap immediate benefits.

Get enough sleep- Sleep is essential

for the body to function properly. Adults can

adopt helpful sleep-enhancing routines.

Music- Music can be used in many

situations to help reduce stress and create a

calming atmosphere: Use classical music to

concentrate as it is peaceful, harmonious and

doesn‘t have lyrics. Music can also be a

reminder to take breaks. When using music

to help you relax before sleep, choose

soothing music with monotonous repetition,

such as sounds of nature or ambient music

Manage your time optimally- Stress often results from difficulty in coping

with day-today problems and conflicting

responsibilities. A useful strategy for

dealing with a sense of being overwhelmed

by all the things that need attention is

prioritizing and diarizing. Create time

buffers to deal with unexpected emergencies

– this is a great way to prepare and avoid

excess stress.

If you are ill, rest Learn to say no- Where a no is the appropriate response, say

it without guilt. No also does not have to be

a decline, it can also be a negotiation

opportunity e.g. ― I can‘t do that now, but I

can do it in next week.

Talk to someone- We‘ve all heard

of the saying ―a problem shared is a problem




halved‖ If you are troubled by something,

donot suppress it. Instead: Speak to a friend

or family member.

Other techniques

1. Exercise - Working out regularly is one of

the best ways to relax your body and mind.

Plus, exercise will improve your mood. But

you have to do it often for it to pay off.

So how much should you exercise every

week?

Good: At the very least, 3 to 5 times for 30

minutes

Better: 2 hours and 30 minutes of moderately

intense exercise like brisk walks

Best: Add 75 minutes of a vigorous exercise

like swimming laps, jogging, or other sports

that gets your heart rate up

2. Relax Your Muscles - When you‘re

stressed, your muscles get tense. You can help

loosen them up on your own and refresh your

body by Stretching, Enjoying a massage, Taking

a hot bath or shower, Getting a good

night‘s sleep.

3. Deep Breathing - Stopping and taking a

few deep breaths can take the pressure off you

right away. You‘ll be surprised how much

better you feel once you get good at it. Just

follow these 5 steps: Sit in a comfortable

position with your hands in your lap and

your feet on the floor. Or you can lie down.

Close your eyes. Imagine yourself in a relaxing

place. It can be on the beach, in a beautiful

field of grass, or anywhere that gives you a

peaceful feeling. Slowly take deep breaths in

and out. Do this for 5 to 10 minutes at a time.

4. Eat Well - Eating a regular, well-balanced

diet will help you feel better in general. It may

also help control your moods. Your meals

should be full of vegetables, fruit, whole

grains, and lean protein for energy. And don‘t

skip any. It‘s not good for you and can put you

in a bad mood, which can actually increase

your stress

5. Slow Down - Modern life is so busy, and

sometimes we just need to slow down and

chill out. Look at your life and find small

ways you can do that. For example. Set your

watch 5 to 10 minutes ahead. That way you‘ll

get places a little early and avoid the stress of

being late. When you‘re driving on the

highway, switch to the slow lane so you can

avoid road rage. Break down big jobs into

smaller ones. For example, don‘t try to answer

all 100 emails if you don‘t have to just answer

a few of them.

6. Take a Break – You need to plan on some

real downtime to give your mind time off

from stress. If you‘re a person who likes to set

goals, this may be hard for you at first. But

stick with it and you‘ll look forward to these

moments. Restful things you can do include:

Meditation,Yoga,Tai chi,Prayer,Listening to

your favourite music,Spending time in nature.

7. Make Time for Hobbies - You need to

set aside time for things you enjoy. Try to do

something every day that makes you feel

good, and it will help relieve your stress. It

doesn‘t have to be a ton of time -- even 15 to

20 minutes will do. Relaxing hobbies include

things like: Reading, Knitting, Doing an art

project, Playing golf, watching a movie,

Doing puzzles, Playing cards and board

games.

8. Talk About Your Problems - If things

are bothering you, talking about them can help

lower your stress. You can talk to family

members, friends, a trusted clergyman, your

doctor, or a therapist. And you can also talk to

yourself. It‘s called self-talk and we all do it.

But in order for self-talk to help reduce

stress you need to make sure it‘s positive and

not negative. So listen closely to what you‘re

thinking or saying when you‘re stressed out. If

you‘re giving yourself a negative message,

change it to a positive one. For example, don‘t

tell yourself ―I can‘t do this.‖ Tell yourself

instead: ―I can do this,‖ or ―I‘m doing the best

I can.‖

9. Go Easy On Yourself - Accept that you

can‘t do things perfectly no matter how hard

you try. You also can‘t control everything in

your life. So do yourself a favour and stop

thinking you can do so much. And don‘t

forget to keep up your sense of humor.

Laughter goes a long way towards making

you feel relaxed.

10. Eliminate Your Triggers - Figure out

what are the biggest causes of stress in your

life. Is it your job, your commute, your

schoolwork? If you‘re able to identify what

https://www.webmd.com/fitness-exercise/default.htm

https://www.webmd.com/fitness-exercise/ss/slideshow-7-most-effective-exercises

https://www.webmd.com/fitness-exercise/guide/get-into-swimming

https://www.webmd.com/fitness-exercise/guide/fitness-basics-running-for-your-life

https://www.webmd.com/heart-disease/pulse-measurement

https://www.webmd.com/sleep-disorders/default.htm

https://www.webmd.com/pain-management/picture-of-the-feet

https://www.webmd.com/diet/default.htm



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https://www.webmd.com/diet/healthy-kitchen-11/reaping-benefits-whole-grains



https://www.webmd.com/fitness-exercise/guide/good-protein-sources

https://www.webmd.com/balance/stress-management/stress-assessment/default.htm

https://www.webmd.com/fitness-exercise/video/rippe-understanding-stress-levels

https://www.webmd.com/balance/meditation

https://www.webmd.com/balance/guide/the-health-benefits-of-yoga

https://www.webmd.com/fitness-exercise/video/tai-chi-health-benefits

https://www.webmd.com/balance/features/music-therapy

https://www.webmd.com/balance/stress-management/stress-management-relieving-stress



https://www.webmd.com/balance/stress-management/stress-management-causes-of-stress




they are, see if you‘re able to eliminate them

from your life, or at least reduce them. If you

can‘t identify the main causes of your stress,

try keeping a stress journal. Make note of

when you become most anxious and see if you

can determine a pattern, then find ways to

remove or lessen those triggers.

Conclusion

There is nothing more calming than

spending quality time with another human

being who makes you feel safe and

understood. In fact, face-to-face interaction

triggers a cascade of hormones that

counteracts the body‘s defensive ―fight-or-

flight‖ response. It‘s nature‘s natural stress

reliever as an added bonus, it also helps

stave off depression and anxiety. So make it

a point to connect regularly and in person

with family and friends. Keep in mind that

the people you talk to don‘t have to be able

to fix your stress. They simply need to be

good listeners. And try not to let worries

about looking weak or being a burden keep

you from opening up. The people who care

about you will be flattered by your trust. It

will only strengthen your bond.It‘s not

always realistic to have a pal close by to

lean on when you feel overwhelmed by

stress, but by building and maintaining

a network of close friends you can improve

your resiliency to life‘s stressors. Many

practical stress management techniques are

available, some for use by health

professionals and others, for self-help,

which may help an individual reduce their

levels of stress, provide positive feelings of

control over one's life and promote

general being. Evaluating the effectiveness

of various stress management techniques

can be difficult, as limited research currently

exists. Consequently, the amount and quality

of evidence for the various techniques varies

widely. Some are accepted as effective

treatments for use in psychotherapy, while

others with less evidence favouring them are

considered alternative therapies. Many

professional organizations exist to promote

and provide training in conventional or

alternative therapies. There are

several models of stress management, each

with distinctive explanations of mechanisms

for controlling stress. Much more research is

necessary to provide a better understanding

of which mechanisms actually operate and

are effective in practice.

https://www.helpguide.org/articles/relationships-communication/making-good-friends.htm

https://en.wikipedia.org/wiki/Health_professional



https://en.wikipedia.org/wiki/Self-help

https://en.wikipedia.org/wiki/Psychotherapy

https://en.wikipedia.org/wiki/Alternative_medicine

https://en.wikipedia.org/wiki/Scientific_modelling




HUMAN RESOURCE ACCOUNTING

DR. ROHINI N.PACHORE

B.Y.K. College of Commerce,

Nasik, Maharashtra.

Abstract

Traditional financial accounting considers only the fixed assets and current assets as

assets and records this in the balance sheet of companies Annual reports, but the real asset,

that is, the human assets are not taken into consideration. This accounting of human asset is

done in human resource accounting. In developed countries, HRA is very well followed and is

attached in their Annual reports. Although, there is much research about HRA in developed

countries, there is a gap in the literature on this area in developing and fast developing

countries. The importance and value of human assets was recognized in the early 1990s when

there was a major increase in employment in firms in service, technology and other

knowledge based sectors. In these sectors, the intangible assets, especially human resource

contributed significantly to the building of shareholder value. The critical success factor for

any knowledge based company was its highly skilled and intellectual workforce. Soon after

the manufacturing industry also seemed to realize the importance of people and started

perceiving its employees as strategic assets.

Keywords: Human Resources Accounting, human capital, knowledge, intangible assets.

I. Introduction

To ensure growth and development

of any organisation, the efficiency of people

must be augmented in the right perspective.

Without human resources, the other

resources cannot be operationally effective.

The original health of the organization is

indicated by the human behaviour variables,

like group loyalty, skill, motivation and

capacity for effective interaction,

communication and decision making.

Men, materials, machines, money

and methods are the resources required for

an organization. These resources are broadly

classified into two categories, viz., animate

and inanimate (human and physical)

resources. Men, otherwise known as the

human resources, are considered to be

animate resources. Others, namely,

materials, machines, money and methods are

considered to be inanimate or physical

resources.

Resources are "all human, material,

real and monetary elements that can be

drawn and used in the production of

economic goods to satisfy social needs".

With the advent of the new economy,

knowledge-based economy it has been

concluded that human resources becomes

increasingly more important in determining

the total value of an organization.

Human resource Accounting (HRA)

involves accounting for expenditure related

to human asset in an organization as opposed

to traditional accounting which merely

expenses these costs and reduces profit

which to our mind sub optimises financial

reporting. As a result of this agitation and

the need for harmonization of human with

other resources in financial reporting, this

study was carried out.

Human capital refers to a set of

knowledge and competence, skills and

training, innovation and capabilities,

attitudes and skills, learning ability and

motivation of the people who form the

organization.

II. Definition of Human Resource

Accounting (HRA) :-

According to American Accounting

Association, HRA is ―the process of

identifying and measuring data about human

resources and communicating this

information to interested parties‖. HRA is

similar in principle to the financial

accounting, that is, just as financial




accounting reflects the costs of assets such

as building and machinery, HRA shows

human resources as capital not as expenses.

According to Stephen Knauf, ―HRA is

the measurement and quantification of

human organizational inputs such as

recruiting, training, experience and

commitment‖.

Flamholz has defined HRA as

―accounting for people as an organizational

resource. It involves measuring the costs

incurred by an organization to recruit, select,

hire, train and develop the human assets‖

Bullen and Eyler (2010), state that

Human Resource Accounting involves

accounting for expenditure related to human

resources as assets as opposed to traditional

accounting which treats these costs as

expenditures that reduce profit.

Woodruff(1973) defined Human

Resources Accounting as the identification,

accumulation and dissemination of

information about Human Resources in

dollar or Naira term. He further explained

that Human Resources Accounting is the

systematic accumulation of information

about changes in investments made in

human resources and reporting back that

information to operating managers in order

to assist them to make better decisions than

they would have been able to make without

such additional information.

Raghav (2011), states that Human

Resources Accounting is a method of

measuring the effectiveness of personnel

management activities and the use of people

in an organization.

Thus, HRA shows the investment, the

organization makes in its people and how

their values change over a period of time.

HRA is a sophisticated way to measure the

effectiveness of personnel management

activities and the use of people in an

organization.

III. Objectives of Human Resource

Accounting (HRA):-

1. To identify the nature and importance of

human resource accounting.

2. To analyse the extent in which HRA

information help to make wise decisions.

3. To examine the perception of

management and employees on human

resource accounting.

4. Increasing managerial awareness of the

value of human resources.

IV. Human Resource Accounting suggests

the following information:

1. Information for Human Resource

Planning

a) To facilitate manpower planning

b) To gather data on actual costs of

recruitment and selection, training etc.

c) Collection of figures over the past period

provides reasonable basis for projecting

future expenses.

2. Information for control of personnel

costs

a) To provide reasonable means of

evaluating the performance of

management in controlling costs.

b) The information helps in developing a

system of standard costs for personnel

recruitment, selection and training. That

would help further in analyzing costs.

3. Information for control of turnover costs

a) To increase awareness to Management

about the costs of turnover and to devise

steps to control it.

4. Information for evaluation of

management effectiveness

a) To increase the accountability of

management in providing measurements

those are effective in developing and

utilizing people over a longer period of

time.

b) Cost per employee

c) Human Capital investment ratio

d) The amount of wealth created by each

employee

e) The ratio of salary paid to the total

revenue generated

f) Average salary of each employee

g) Employee absenteeism rates

h) Employee turnover rate and retention

rate.

5. Information for the Board and

Stakeholders

a) To keep the top management abreast of

changes in the company and its




investment on people and human

resource value.

b) To help the top management in making

decision regarding the investment of the

firm in human resource to investors even

though the data remains unaudited.

V. Advantages of Human Resource

Accounting (HRA) :-

1. Information for manpower planning

HRA provides useful information about the

cost and value of human resources. It shows

the strengths and weakness of the human

resources. All this information helps the

managers in planning and making the right

decisions about human resources. Thus, it

provides useful information for Manpower

Planning and Decision Making.

2. Information for making personnel

policies

HRA provides useful information for

making suitable personnel policies about

promotion, favourable working environment,

job satisfaction of employees, etc.It can

assist the management for implementing best

methods of wages and salary administration.

3. Utilization of human resources

HRA helps the organisation to make the best

utilization of human resources. The system

of HRA discloses the value of human

resources, which helps in proper

interpretation of return on capital employed.

It helps in efficient utilization of human

resources and understanding the evil effects

of labour unrest on the quality of human

resources.

4. Proper placements

HRA helps the organisation to place the

right man in the right post depending on his

skills and abilities. The implementation of

human resource accounting clearly identifies

human resources as valuable assets, which

helps in preventing misuse of human

resources by the superiors as well as the

management.

5. Increases morale and motivation

HRA shows that the organisation cares about

the employees and their welfare. This

increases their morale and it motivates them

to work hard and achieve the objectives of

the organisation. Managerial decision-

making can be improved with the help of

HRA.This system can increase productivity

because the human talent, devotion, and

skills are considered valuable assets, which

can boost the morale of the employees.

6. Attracts best human resources

Only reputed organisations conduct HRA.

So, competent and capable people want to

join these organisations. Therefore, it attracts

the best employees and managers to the

organisation.

7. Designing training and development

programs

HRA helps the organisation to design (make)

a suitable training and development program

for its employees and managers.

8. Valuable information to investors

HRA provides valuable information to

present and future investors. They can use

this information to select the best company

for investing their money.

VI. Need for Human Resource Accounting

(HRA):-

The need for human asset valuation

arose as a result of growing concern for

human relations management in the industry.

Behavioural scientists concerned with

management of organizations pointed out the

following reasons for HRA:

1. Under conventional accounting, no

information is made available about the

human resources employed in an

organization, and without people the

financial and physical resources cannot be

operationally effective.

2. The expenses related to the human

organization are charged to current revenue

instead of being treated as investments, to be

amortized over a period of time, with the

result that magnitude of net income is

significantly distorted. This makes the

assessment of firm and inter-firm

comparison difficult.

3. The productivity and profitability of a

firm largely depends on the contribution of

human assets. Two firms having identical

physical assets and operating in the same

market may have different returns due to

differences in human assets. If the value of




human assets is ignored, the total valuation

of the firm becomes difficult.

VII. Limitations of Human Resource

Accounting (HRA):-

1. The valuation of human assets is based on

the assumption that the employees are going

to remain with the organisation for a

specified period. However, this assumption

is wrong because employee mobility is very

high.

2. The human resource accounting may lead

to the dehumanization in the organisation. If

the valuation is not done correctly or the

results of the valuation are not used properly.

3. In the case of financial accounting, there

are certain specified accounting standards

which every organisation must follow.

However, there are no standards for

HRA.Each organisation has its own

standards for it. So, there are no uniform

standards for it. Therefore, the HRA of two

organisations cannot be compared.

4. There are no specific and clear cut

guidelines for 'cost' and 'value' of human

resources of an organisation. The present

valuation systems have many limitations.

5. The life of a human being is uncertain. So

its value is also uncertain.

6.There is no proper clear-cut and specific

procedure or guidelines for finding cost and

value of human resources of an organization.

The systems which are being adopted have

certain drawbacks.

VIII. Conclusion:-

It is fact that the 21st century is era

of Human demand, countries those have

labour quality ruling the world with

dominant technology. Thus, it could include

the measurement of sustained effort, of

corporate governance or human capital. The

nature of the financial ratio will change in

the future, as the importance of figures will

not be the only aspect to consider. No model

of human resources accounting is accepted

by the accounting bodies all over the world.

What is needed is measurement of abilities

of all employees in a company, at every

level, to produce value from their knowledge

and capability. Human Resource Accounting

(Human Resources Accounting) is basically

an information system that tells management

what changes are occurring over time to the

human resources of the business. Human

Resources Accounting also involves

accounting for investment in people and

their replacement costs, and also the

economic value of people in an organisation

References:-

1. Jain K.L Narang Accounting Kalyani

Publishers NewDelhi‖ pp.1235.

2. Subbarao, A.V., &Zehgal, D.(1997).

Human resources information and

disclosure inannual reports : An

international comparison. Journal of

Human Resource Costing

andAccounting, 2 (2), 53-73.

3. Sen, Dilip Kumar. "Anatomy of Human

ResourceMeasurement and Accounting",

Ph.D. Thesis,Bangla Academy, 2005.

4. Parameswaran R. &Jothi K. "Human

ResourceAccounting –The Charted

Accounted, Jan. 205. pp867-69.

5. Akhtaruddin,M., "Human Resource

Accounting InBanking Industry", The

Cost and Management,Sep.-Oct. 1990,

pp. 19-22.

6. Caplan E. H. and Landekich, S., ―Human

Resource Accounting: Past, Present and

Future‖.

7. Personnel / Human Resource

Management (Text, Cases and Games):

P. Subbarao& V.S.P. Rao.




STUDY OF IMPACT OF GOODS AND SERVICES TAX

ON SERVICE INDUSTRY

(HOTEL, EDUCATION, HEALTH)

DR. D. P. GADHE

Associate Professor,

S.S.G.M. College, Kopargaon.

Dist-Ahmednagar, State-Maharashtra

A. ABSTRACT

GST is one of the most crucial tax reforms in India. It is a comprehensive tax system

that will subsume all indirect taxes of states and central governments and united economy

into a seamless national market. It is expected to iron out wrinkles of existing indirect tax

system and play a vital role in growth of India. This paper presents an overview of GST

concept, explains its impact on service sector industry/institution.

Keywords:- Goods and Service Tax, Service sector industry/Institution.

B. The Study has the following

objectives:-

1)To Know the Concept of Service.

2)To study the impact of GST on Service

Sector related to Hotel,Health,Education

C. Hypothesis of the study:-

1. Goods & Service tax made a positive

impact on service

sector(Hotel,Education,Health)

2. Goods and service tax beneficial to

consumer & Producer of related service

industry.

D. Definition & Meaning of Service:-

According to Business Dictionary

Service Defined as:-

Intangible products such as

accounting, banking, cleaning, consultancy,

education, insurance, expertise, medical

treatment, or transportation. Sometimes

services are difficult to identify because

they are closely associated with a good;

such as the combination of a diagnosis with

the administration of a medicine. No

transfer of possession or ownership takes

place when services are sold, and they (1)

cannot be stored or transported, (2) are

instantly perishable, and (3) come into

existence at the time they are bought and

consumed.

E. Impact of GST on Service Sector:-

This study is related to service

sector subject to Hotel industry, Health

Service,& Education Institution. Hence We

Discussed on following industry/Institution.

1.Hotel Industry-

Hotel industry is basically served

two types of services namely restaurant and

accommodation/Hospitality service, hence

let we observe what is happened with these

two services by the effect of GST.

Hotel industry Goods and Services

Tax, or GST This seems to be the word

everyone is treating with complete

trepidation. There is still a lot of uncertainty

and wariness in what the next few months

will bring, and what all changes need to be

made.So how does GST affect the Indian

hospitality sector? Just a few days back, the

GST council provided a slight sigh of relief

to mid- market and luxury hotels by stating

that only rooms with a tariff of Rs.7,500

and more, and not Rs.5,000 as declared

earlier, would have a GST of 28%. Hotel

rooms with a tariff between Rs. 2,500 to Rs.

7,500 would have a GST of 18%.

-Following Chart provide the price Charged

after GST

Room Tarriff

(INR)

GST

Applicable

Less than 1000 0%

1000-2499 12%

2500-7499 18%

More than 7500 28%




b) Restaurant Service/other service:-

Serving of Food and Liquor in Restaurants

and in Room Dinning

1. Supply of Food/drinks in

restaurant not having

facility of air-

conditioning or central

heating at any time during

the year

and not having licence to

serve liquor.

12% with

ITC Credit.


restaurant having licence

to serve liquor.

18% with

ITC Credit


restaurant having facility

of air-conditioning or

central heating at any

time during the year.

18% with

ITC Credit

4. Supply of Food in

catering service

18% with

ITC

Credit< /p>

5 Supply of Food/drinks in

air-conditioned restaurant

in 5-star or above rated

Hotel

18% with

ITC Credit

Rent a Cab

6. Rent a cab (If fuel cost is

borne by the service

provider)

5% with

No ITC.

7 Rent a cab (If fuel cost is

borne by the service

recipient)

18% with

ITC Credit

Mandapkeeper

8.

Bundled service by way

of supply of food or any

other article of human

consumption or any

drink, in a premise

(including hotel,

convention center, club,

pandal, shamiana or any

18% with

ITC Credit.

other place, specially

arranged for organizing a

function) together with

renting of such premises.

Banking and financial services like foreign

currency exchange

9 In case of currency

exchange to its guest

Value of Currency

Involved (in INR)

18% with

ITC Credit,

but

valuation

shall be

done as per

valuation

rules

10. 0 to 1,00,000/- 1% or Rs.

250/-

whichever

is higher.

11 1,00,001/- to 10,00,000/- 1,000/-+

0.5%

12 10,00,00/- and above 5,000/-

+0.10% or

Rs.

60,000/-

whichever

is lower.

Supply of packed food items as mini bar.

13 Supply of packed food in

mini bar

Rate shall

be as per

product

rate.

Renting out the premises for events,

conferences etc

14 Renting out the premises

for events, conferences

18% with

ITC Credit.

Other Services

15 Catering Services 18% with

ITC Credit

16 Laundry services 18% with

ITC Credit




17 Business support services 18% with

ITC Credit

18 Telecommunication

services like telephone,

fax, wifi.

18% with

ITC Credit

19 Beauty parlor 18% with

ITC Credit

20 Gymnasium services 18% with

ITC Credit

21 Club Facility. 18% with

ITC Credit

2. Education Sector:-

The Right of Children to Free and

Compulsory Education Act of 2009 has

made education not only compulsory but

has also made the Govt. responsible to

provide education at economical rates. The

Council has kept education sector free

from its ambit.

Services related to education, provided by

any educational institution to its students,

faculty and staff like transportation,

catering, mid day meals, admissions,

examinations, housekeeping etc. have been

exempted under GST. The educational

institutions that have been granted the

exemption from GST are pre-schools and

higher secondary educational institutes both

private and Govt.

The exemption has also been

granted to the services provided by the

Indian Institutes of Management to their

students, by way of the –

1. 2 year full-time residential PG programs

in Management for Post Graduate Diploma

in Management, admission in which is

granted via CAT

2. Fellowship programs in Management

3. 5 Year Integrated Programs in

management studies (but excludes the

Executive Development Program).

The education services provided by the

below are also exempted from GST:

1. National Skill Development Corporation

set up by the Government of India

2. Sector Skill Councils approved by the

National Skill Development Corporation

3. Assessment agencies approved by the

Sector Skill Council or the National Skill

Development Corporation

4. Training partners approved by the

National Skill Development Corporation or

the Sector Skill Council are also included

w.r.t the following programs:

(a) the National Skill Development

Programme implemented by the National

Skill Development Corporation

(b) a vocational skill development course

under the National Skill Certification and

Monetary Reward Scheme

(c) any other Scheme implemented by the

National Skill Development Corporation‖.

However, as the educational services led by

training and coaching foundations don‘t

help in getting legally perceived

qualifications therefore these are not

exempted from GST. Let us take a look at

them:

1. Higher Education Institutions and Private

Institutions - The exemption under GST has

been granted just for pre-schools till higher

secondary education and since universities

and other advanced educational institutions

have not been mentioned in the exception

list, and thus GST of 18% is expected to be

levied on this.Higher education in the

private segment will end up being more

costly and in turn, rivalry for admissions in

government schools/colleges/foundations

will increment. There will be a 3 to 5% of

the obligation jump on the cost of

administrations that will over the long haul

impact the common man. The burden will

be the most on middle class families who

obtain education loans or put their life-long

savings into educating their wards at

reputed institutions.

2. Coaching Institutes - Coaching

institutes form an integral part of education

today as clearing competitive exams and

entrance exams seems just impossible

without taking professional coaching on

how to clear and attempt them. GST has

raised the rate of taxes to 18% from 14%

for these coaching institutes. This will be a

burden for all parents whose child is about




to start coaching for IITs and other

competitive examinations.

3. Cost of Organizing Events – Any

educational/training events organized in

India by foreign entities which are attended

by professionals, individuals and overseas

participants as well would be taxed under

GST.

3. Healthcare Sector: Health care is one of the fastest

growing sectors of the Indian economy with

lots of potential in terms of revenue and

employment. Health care is a wider term

that mainly includes pharmacy, medical

devices, medical insurance, diagnostics and

other components of medical care. The

GST is going to affect all the components

of health care in various ways.

1) GST and Pharmaceutical industry -

About two thirds of the out of pocket

expenditure on healthcare is on drugs in

India. The burden of all the taxes on drugs

in general was about 13 percent in the pre

GST period and the current GST is 12

percent as a whole including ayurvedic

drugs. The medicines for HIV-AIDS,

malaria, tuberculosis and diabetes will be

imposed 5 percent GST. The GST on the

drugs produced under excise free

manufacturing zone is yet to be clarified.

The best thing for the pharma companies is

that their cost of purchase is going to

reduce. Moreover the burden of multiple

tax and complexities associated with

multiple tax system slowed down the

business. GST will give hassle free business

environment to the pharma companies. For

the consumer the cost of drugs will come

down.

2) GST and Medical devices and

Equipment - The manufacturers of medical

devices are also joining the party as medical

devices and surgical equipments are

proposed to be taxed 12 percent under the

GST. The previous burden of taxes on the

medical devices and equipment was over 13

percent including all the bunch of taxes. So

one percent tax benefit is clearly visible

under the new tax system for the medical

device and equipment industry. This will

clearly give a boost to the industry in the

near future. The consumer will also share

the benefits in terms of lower price and

affordability.

3) GST and Health Insurance - There is lot

of scope of for health insurance in the

country like India where the coverage under

health insurance is only 18 percentage in

urban and 14 percent in rural India in 2016.

The GST rate on the insurance sector is 18

percent as against 15 percent service tax in

the pre GST era. It clearly indicates that the

health insurance premiums are going to

increase.

4) GST and diagnostics - There is expected

rise in the prices of diagnostics such as

blood tests, X-rays, MRI and strip based

diagnostics as they are put under either 12

or 18 percent slab which is higher than the

previous tax rate on these services. In the

pre GST era the 10-15 percent of out of

pocket expenditure is on diagnostics which

is expected to increase in the post GST

period.GST will certainly increase the

Government revenue in the country with

more transparency in the tax system that

will further simplify the tax structure. The

economy is expected to grow at a faster

rate. Every sector of the economy would

have its share in the growth of the economy

including healthcare sector. In a broad

spectrum, it is an analysing phase for the

healthcare sector to see the impact of GST.

The experts of the healthcare sector are

confident that the post GST period will

bring the strategic change and will create a

positive environment by minimizing the

obstacles and complexities in the growth of

healthcare sector and have a positive impact

to bring down the cost of health.

F. Conclusion

We can conclude from the above

study that the Goods & Service Tax (GST)

is much beneficial to the both customer and

the service industry because of its

uniformity of charging taxes. When we

come through study of above stated service

industry, we can test our hypothesis on the

basis of analytical study,

https://health.economictimes.indiatimes.com/tag/medical+devices



https://health.economictimes.indiatimes.com/tag/diagnostics

https://health.economictimes.indiatimes.com/news/industry

https://health.economictimes.indiatimes.com/tag/healthcare

https://health.economictimes.indiatimes.com/tag/health+insurance




1. Goods & Service tax made a positive

impact on service

sector(Hotel,Education,Health)

2. Goods and service tax beneficial to

consumer & Producer of related service

industry.

Both hypothesis are accepted.

References

1) http://edupaper.in/gst-india-advantages-

disadvantages/#sthash.f6tap0Dw.dpuf

2) https://www.google.co.in

3) http://www.gstindia.com/

4) http://www.moneycontrol.com/news/tax

/why-is-gs

5) http://www.business-

standard.com/article/economy-

policy/administratively-we-areready-

for-gst-rollout-from-april-1-2016-

shaktikanta-das-115081800008_1.html

6) http://tejas.iimb.ac.in/interviews/27.php

7) https://cleartax.in/s/gst-council/

http://edupaper.in/gst-india-advantages-disadvantages/#sthash.f6tap0Dw.dpuf

http://edupaper.in/gst-india-advantages-disadvantages/#sthash.f6tap0Dw.dpuf

http://www.business-standard.com/article/economy-policy/administratively-we-areready-for-gst-rollout-from-april-1-2016-shaktikanta-das-115081800008_1.html





http://tejas.iimb.ac.in/interviews/27.php




A STUDY OF PREVIOUS TAX STRUCTURE AND GOODS AND SERVICE TAX

DR. VAISHALI M. DESHPANDE

Maharshi Karve Stree Shikshan Samstha‘s

Shree Siddhivinayak Mahila Mahavidyalay,

Karvenagar, Pune, Maharashtra.

INTRODUCTION:

An individual who is eager to know

what is the difference between Goods and

Service Tax and Previous

taxation system and Goods and Service Tax

is a boon to the Indian economy. GST India

is a comprehensive tax on manufacturing,

sale and consumption of goods and services

at national level, under, which no distinction

will be made between, goods and services

for levying of tax. GST India has subsumed

almost every indirect tax, levied on goods

and services by the Central and State

governments in India. GST has a G2B portal

for taxpayers, to access the GST System,

seeking to file their GST returns. However

that would not be the only way, for

interacting with the GST India Services, as

the taxpayer, pertaining to his preference of

third party applications.

Objective of the study:

1. To review the previous tax structure.

2. To understand the new concept of

GST.

3. To know GST structure.

4. To compare previous tax and GST.

Methodology:

This paper is purely based on

secondary data.

Previous Tax Structure in India:

Central Taxes: * Central Excise

*Additional Duties of

Custom

* Service Tax

*SAD

* All Cesses

State Taxes: VAT / Sales Tax

Entertainment Tax

Luxury Tax, Lottery Tax

Entry tax

Purchase tax

Stamp duty

Electricity duty

Tax on Vehicle

All the above mentioned indirect

taxes have been subsumed to bring about a

new tax reform – Goods and Services Tax

(GST). Whether you are a Buyer or supplier.

MAJOR INDIRECT TAXES AT

PRESENT:

1. EXCISE DUTY:

2. SERVICE TAX

3. VAT/ CST

1. EXCISE DUTY: Central Excise duty is

an indirect tax levied on goods

manufactured in India. Central Excise

revenue is the biggest single source of

revenue for the Government of India. The

Central Excise duty is levied in terms of

Central Excise Act, 1944.Manufacture has

to take registration when turnover exceeds

90 crores. Goods shall be removed under

invoice format proscribed in excise rules.

Appropriate duty has been charged on

invoice and should be paid to central

government within time limit. Records have

been to maintain like Daily Stock Account,

CENVAT Credit on Inputs/ Input Services /

Capital Goods. Periodic Returns as

applicable should be submitted within due

dates.

2. SERVICE TAX: Service Tax is an

indirect tax levied on rendering of services

in India. This tax is introduced by Finance

Act, 1994, by Dr. Manmohan Singh. At

present almost 120 category of taxable

service are there in India. Generally service

provider is liable to pay service tax but

government has notified certain services

with regard to which service receiver would

be held liable to pay service tax (Reverse

Charge Concept). Service tax levied by

Central Government. Service Provider has to

take registration when service turnover




exceeds Rs. 9 lakhs. Services shall be

provided by issuing authenticated invoice

format prescribed in rules. Six monthly

returns should be submitted within due

dates.

3. VALUE ADDED TAD (VAT) /

CENTRAL SALES TAX (CST):VAT/

CST is also indirect tax levied on sale of

goods. It is the source of revenue to the State

Government. It is a multi-stage tax levied at

each stage of the value addition chain. VAT

is levied on Intra-State Sale Transactions

(within same state).CST is levied on Inter-

State Sale Transactions (one state to another

state). VAT Law is defined by States (in

Maharashtra –MVAT Act, 2002) and Rules

made there under. CST law – Central Sales

Tax Act, 1956.

LIMITATION OF CURRENT

INDIRECT TAXES:

1. Tax Cascading.

2. Lack of Uniformity in Provisions and

Rates.

3. Complexities in Administration.

4. Multiple Acts and Compliances-Returns.

5. Different Valuation basis.

6. Different Adjudications.

7. Complexity in defining the nature of

transaction –Sale vs. Service.

8. Ambiguity under service Tax and VAT –

Restaurant Services / Works Contract

/Right to use of Movable goods /

Software.

9. Ambiguity under Excise and Service tax

for – Drawings and Designs / Software /

Commissioning and Installation.

GOODS AND SERVICE TAX:

GST is an Indirect Tax which was

introduced in India on 1st July, 2017 and was

applicable throughout India which replaced

multiple cascading taxes levied by the

Central and State Government. The GST is

governed by a GST Council and its

Chairman is the Finance Minister of India.

GST is an Indirect tax levied on the supply

of goods and services. GST Law has

replaced many Indirect tax law that

previously existed in India.

NEED OF GST:

1. Simplified and Unified Tax System.

Abolition of multiple types of Indirect

Tax.

2. Avoid double taxation. Ease of Doing

Business.

3. Reduce Interface with different

departments – Central, State and Local

bodies.

4. Simple collection system.

5. Introduction of GST will reduce the

prices of goods and thereby enhance the

ability of companies to compete

globally.

6. Development of common national

market.

7. Fewer rates and exemptions.

8. Uniform prices throughout the country.

9. Transparency in taxation system.

10. Increase in employment opportunities.

11. Reduces administrative cost for the

Government.

OBJECT OF THE GST:

Its main objective is to consolidate

all indirect taxes levied on goods and

services. Introduction of GST will reduce

the prices of goods and thereby enhance the

ability of companies to compete globally.

GST removes cascading effect of taxation

and also distortion in the economy. For

overcome the limitations of existing indirect

tax structure, and creating efficiencies in tax

administration. It is expected that due to

GST, India‘s GDP will grow by 1-2% and

India‘s rank in Ease of Doing Business is

expected to improve by fifty number.

PROPOSED INDIRECT TAX STRUCTURE IN GST:

INDIRECT TAXC (GST) = INTRA-STATE (CGST) AND (SGST) + INTER STATE (IGST

– DUAL)

CGST – CENTRAL GOODS AND SERVICE TAX

SGST – STATE GOODS AND SERVICES TAX

IGST – INTEGRATED GOODS AND SERVICE TAX

In most cases, tax structure under the new regime will be as follows:




Transaction New Regime Old Regime

Sale within the

State

CGST + SGST VAT + Central

Excise / Service

Tax

Revenue will be shared equally

between the Centre and state

Sale to another

state

IGST Central Sales

Tax + Excise /

Service Tax

There will be only one type of

tax (Central) in case of

interstate sales. The center will

then share the IGST revenue

based on the destination of

goods.

Difference between current taxation system and GST

Previous taxation system and GST System

Condition Previous Taxation System GST System

Tax Structure

Structure 1. Under separate laws, tax is

levied by Central Govt. and

State Govt. on goods and

services.

2. In the Current taxation system

import of goods into India is

subject to a levy of customs

duty and the person importing

the goods is liable to pay

customs duty at the applicable

rates.

1. There is no separate tax

levied for goods and

services. GST is a

common tax applicable

to both of these.

2. In the GST System till

the goods or services

reaches the consumer

this GST tax would

allow smooth and

continuous tax credit at

all levels

Place of

Taxation

Origin based taxation Destination based Taxation

Types of Taxes

Excise duty A percentage levied on manufacture,

sale, or use of locally produced

goods.

Excise Duty will be

subsumed in GST and

levied as CGST and SGST

Service Tax Tax levied by the government on

service providers on certain service

Tax will be subsumed in

GST and levied as CGST,

https://www.legalraasta.com/gst/destination-based-tax/




transactions, but it‘s actually borne

by the customers.

SGST and IGST.

State VAT VAT (Value Added Tax) is a form

of indirect tax imposed only on

goods sold within a particular state.

Here in GST, it is subjected

to CGST And SGST if

the supply of goods is

within the state.

Central sales

Tax

It is a form of indirect tax imposed

only on goods sold from one state to

another state.

It is a form of indirect tax

imposed only on goods sold

from one state to another

state.

Threshold limit

1. Central Excise-1.5 Crores

2. VAT-Varies from Rs.5to 20

Lakhs from state to state

3. Service Tax- Rs.10 Lakhs

CGST & SGST– Rs.10

Lakhs to 20 Lakhs as

recommended by GST

Council.

Cascading effect

This Problem arises because credit

of CST and many other taxes are not

allowed

In the introduction

of IGST this situation will

not arise as CST concept.

Broad scheme Separate laws for charging separate

taxes One law for various taxes

Tax rates Different tax rates for different

taxes.

There will be

one CGST rate and a

uniform SGST Rate across

all states.

Tax burden Tax burden is high for the individual

to pay so many taxes.

Tax burden is low because

of single tax so the work

splits between

the manufacturing and

service sector.

Compliance Tax compliance is complex due to

multiplicity of tax.

Tax compliance is easier

because of one law.

CONCLUSION:

Previous tax policy was complicated.

Goods and Service Tax has single

administration. One assess will be

administered either by state government or

central government. Around 36 Returns are

required to be filed in a year. Taxable event

in GST is supply. Anti-Profiteering Measure

clause inserted in GST law so as to ensure

that consumer gets benefits of price

reduction in GST due to reduction in taxes.

In simple words, GST is an indirect

tax levied on the supply of goods and

services. GST Law has replaced much

indirect tax law that previously exist.

References:

1) www.greengst.com/difference-between-

current-tax-structure-and-gst/

2) ww.ndtv.com/business/before-and-after-

gst-here-are-tax-rates-on-some-common-

use-items-17

3) www.ndtv.com/business/before-and-

after-gst-here-are-tax-rates-on-some-

common-use-items-17358

4) www.quora.com/What-is-the-difference-

between-old-tax-and-current-GST

5) www.reachaccountant.com/erp-software-

pos-software-blog/difference-current-

taxation-new-goods

https://www.legalraasta.com/gst/sgst/

https://www.legalraasta.com/gst/igst/

https://www.legalraasta.com/gst/cgst/

https://www.legalraasta.com/gst/different-types-of-supply/

https://www.legalraasta.com/gst/thresholds-eligibility-criteria/

https://www.legalraasta.com/gst/igst/

https://www.legalraasta.com/gst/gst-tax-rate-gains-losses/

https://www.legalraasta.com/gst/manufacturing-sector-gst/

http://www.greengst.com/difference-between-current-tax-structure-and-gst/

http://www.greengst.com/difference-between-current-tax-structure-and-gst/

http://www.ndtv.com/business/before-and-after-gst-here-are-tax-rates-on-some-common-use-items-17358






EFFECT OF GST ON INSURANCE

DR. RATI CHANDRA

Pashan, Pune, Maharashtra.

“Nothing is constant but Change” and this time it is the long awaited change

in the indirect tax plan known as Goods and service tax. Health insurance has become

3% more expensive with the implementation of GST. This research paper is an

attempt to understand the effect of increase in GST indirect tax on the insurance

premium and on the growth of Indian insurance sector as whole.

Understanding GST in one glance: -

The Goods and Service Tax Act

popularly known as GST was passed

in the Parliament in the month of May 2017

.The tax came in to effect from 1stday of

July 2017 to bring changes in the tax

structure between center government and

State government . It is a

comprehensive, multi-stage, destination-

based value added tax imposed with the

intention of eradicating cascading of taxes.

But there was no cascading of taxes in

Insurance!! Then why Insurance holder

have to pay more premium? Its like When

the buffaloes fight, the crops suffer.

The insured have to shell out 3%

more post the implementation of GST the

taxes have increased from 15% to 18% on

the insurance premiums.

The Premium Deciding Factor

The premium is decided on the type

of insurance one like to buy to prevent the

risk of financial loss against the events like

death, disease, fire or theft. Indian

Insurance sector is broadly divided in to (a)

Life insurance and (b) General insurance.

Effect of GST on Life Insurance and

Health Insurance.

There are of 3 types

1. Term insurance plans — The most basic

form of life Insurance.

2. ULIPs — Unit link investment Plan

offers the combination of investment

and insurance in one plan.

3. Endowments or money back plan —

Insurance plan that pay a lump sum

amount on maturity or on the event of

death or a regular payment of fixed sum

every month (like a pension)

Service tax applicable before and

after GST

Category Service Tax

With SBC*

And KKC*

After

GST

Term insurance

premium

15% 18%

ULIP charges 15% 18%

Health insurance

premium

15% 18%

*SBC Swatch bharat cess KKC Krishi

kalyan cess

The application of taxes in details: -

1. The amount allocated for Investment (on

behalf of Insurer) is deducted from the

gross premium and tax is levied only on the

amount allocated purely for insurance

premium.

For example,

Gross Premium 1000 1000

Investment Portion 600 600

Life Insurance portion 400 400

Service tax @ 15% on

400

60 —–

GST @18% on 400 —– 72

(Gupta, 2017)

2. Single premium annuity policies- 10% of

the premium

3. Rest all cases- 25% for 1st year and 2nd

year onwards 12.5%on the premium paid

Gross Premium p.a. 1000

1st Year

25% of value 250




GST @18% on 250 62.50

2nd year

12.5% of value 125

GST @18% on 125 22.50

Impact:

For Insured, the premium of existing

policies as well as new policies will

increase 3% due to the increase in tax rates.

For insurers, as GST is an indirect tax the

burden will be passed on to the consumers.

The insurance company expect higher

compliance and administrative costs due to

the complexities of GST returns and also

effect of taxability of inter-branch services.

GST is not applicable on government

insurance scheme like

Janashree Bima Yojana (JBY); or

Aam Aadmi Bima Yojana (AABY);

Life micro-insurance product as approved

by IRDA ,

Varishtha Pension BimaYojana;

Pradhan Mantri Jeevan Jyoti BimaYojana;

Pradhan Mantri Jan Dhan Yogana;

Pradhan Mantri Vaya Vandan Yojana

Life insurance provided by the Central

Government to members of the Army, Navy

and Air Force.

(India.gov.in, 2017)

Effect of GST On General Insurance.

General insurance includes fire

insurance, marine insurance, car insurance,

theft insurance, etc. The same rate of 18%

GST is imposed on Health insurance

premiums.

Impact:

For individual insured, the gross

premium will increased with 3%

For Corporate policyholders, who

have taken general insurance through their

company will have the benefit of input tax

credit on the GST paid on their policies

though this was available to them

previously also under service tax.

Insurance

Product

Befor

e

Afte

r

Applicabilit

y

Term

Insurance

Premium

15 18 On the entire

premium

amount

ULIP 15 18 On the

premium

amount minus the

investment

amount

Health

Insurance

Premium

15 18 On the entire

premium

amount

Add-on

Riders

Premium

15 18 On the entire

premium

amount

Periodicity

- Single

Premium

15 18 On 10

percent of

the total premium. It

means that

the previous 1.5 percent

of the total

premium would be

hiked to 1.8

percent of

the total premium as

per the

updated GST rates.

Endowmen

t Plan Premium

(First

Year)

15 18 On 3.75

percent of the total

premium

Endowmen

t Plan

Premium (Renewal)

15 18 On 1.875

percent of

the total premium

Source:- (Dhawan, 2017)

Summary




The GST has definitely widened the

hole in the pocket of insurance holders.

This hike will have a negative impact on the

growth of insurance sector. According to

the IRDA reports 2016 life insurance reach

in India has reduced from 4.6% to 2.6%

(IRDA, 2017)and the increment of taxes

will bring the affordability of common men

further down. The only ray of hope is the

government Insurance schemes and now all

the energies should focus on increasing the

penetration of Government run insurance

scheme to support the lowest cadre of

Indian population.

Reference

1. Dhawan, s. (2017, june 22). GST impact

: Insurance premium,banking service

charges to increase. Retrieved november 27,

2017, from economictimes.indiatimes.com:

https://economictimes.indiatimes.com/wealt

h/personal-finance-news/gst-impact-

insurance-premium-bank-charges-to-

increase/articleshow/58895024.cms

2. IRDA. (2017). IRDA annual report.

Government, Insurance. IRDA.

3. Gupta, A. (2017, june 5). How GST will

increase insurance premium, bank charges.

(Financial express) Retrieved November 27,

2017, from Financial Express read to lead:

http://www.financialexpress.com/money/ho

w-gst-will-increase-insurance-premium-

bank-charges/702258/

4. India.gov.in. (2017). India .gov.in.

Retrieved november 27, 2017, from

www.india.gov.in:

https://www.india.gov.in/list-government-

sponsored-socially-oriented-insurance-

schemes

5. Chandra, D. R. (2017, April 25). A

comparative study of health insurance

policies among life, non-life and specialised

health insurance companies. Pune,

Maharashtra.

https://www.india.gov.in/list-government-sponsored-socially-oriented-insurance-schemes






THE IMPACT OF E COMMERCE IN DEVELOPING COUNTRIES

AND NEW EMERGING BRAND EXTENSION

SUROJIT SAHA

ASM

Group Branding Head

DEEPAK SINGH PARMAR Senior Executive

Digital Marketing TCS

Abstract The Impact of E-commerce has been seen by many as an opportunity for developing

countries to gain a stronger foothold in the multilateral trading system. E-commerce can play

a pragmatic role in helping developing economies benefit more from trade. Unlike the

requirements necessary to run a business from a physical building, e-commerce does not

require storage space, insurance, or infrastructure investment on the part of the retailer.

However, there are many obstacles in developing countries which seriously hinder the

growth of their ecommerce.

Index Terms

E-commerce, Economic development electronic business, electronic commerce,

developing countries developing economies, social development.

Introduction: In today‘s modern era of high

technological innovation and scientific

consumer research, never has it been in the

history of mankind that today internet has

connected both the urban and rural

economy. A new kind of energy and

enthusiasm has been found creating better

markets, boosting economies, improving

the quality and standard of life both in city

and remote villages. Even ten years before

nobody could think and anticipate the

structural and sociological transformation

that could possibly be done.

From a slow pace economy to a

full throttle growth in economy in

particular in developing countries like

ours, the data plays a fundamental role in

positively impacting E commerce which as

per market analyst is the next big trillion

dollar revolution. The key catalyst to

enhance this positive growth has been

brought by the power, the agility of

connecting the seller, marketer and the

consumer at an extreme end. Based on

detail market research it has been reported

that there were four major revolutions that

took place in the 21st century.

1. Automobile Revolution

2. Hardware Revolution

3. Software Revolution

4. E-Commerce Revolution

No doubt the way today a

consumer who used to wait helplessly for

receiving qualitative and value add worth

the price they used to pay for the product,

today most of the supply and

manufacturing companies goes all possible

ways to delight their customers. E-

commerce impact has brought a paradigm

shift from giving seller importance to re

focus more on the consumer experience.

Not only internet explosion has reduced

the gap of transaction but also has given

the customer a wide range of rational

possibilities and options to choose from

the worst to the best.

History of E-Commerce:

Background E-commerce actually began

in the 1970s when larger corporations

started creating private networks to share

information with business partners and

suppliers.

• This process, called Electronic Data

Interchange (EDI), transmitted

standardized data that streamlined the

procurement process between businesses,

so that paperwork and human intervention

were nearly eliminated.

• EDI is still in place, and is so effective at

reducing costs and improving efficiency




that an estimated 95% of Fortune 1,000

companies use it.

• Early EC was pioneered by Internet

companies that didn't (and still don't)

perform traditional retail. Called Pure

Plays.

• More recently click and mortar stores

have moved online like Barnes and Noble,

Best Buy, the Gap, and Wal-mart.

E-commerce has come a long way

in making a customer the king of the

market. There are both brighter and darker

impacts that it is creating for developing

economies. Cited below is little

comparative analysis:

1. The brighter impact:

• Reducing time and space during each

business cycle

• More accountability and transparency

• Better data security against any natural

odd calamities

• More fairness while dispensing the

product and services

• Market moving from top elite classes to

down trodden masses

• Better regulation in market distribution

• Ending of license raaj and monopolistic

market

• Better decisions are taken with more

clarity

2. The darker impact:

• Unrealistic branding of the product

• Usability of products has gone down

• No regulation on the pricing

• In the name of customization quality has

been compromised

• It has created more rift between the rich

and the poor

• Lot of cyber crimes and financial

bankruptcy has been the order of the day

What is E-commerce? It is clear that e-commerce is a very

broad concept and does not have a clear

cut definition. One way of defining it, is

that, it is a way of doing business

transactions via the internet. E-commerce

or e-business is based on the electronic

processing and transmission of data,

including text, sound, and video. E-

commerce as it is commonly known is the

use of technology to conduct financial

transactions online.

Objective Mix: The findings indicate that e-

commerce benefits are, by and large,

limited to improvements in intra- and inter

organizational communications. More

strategic benefits relating to market access,

customer/supplier linkages or cost savings

were not found in the majority (more than

80%) of organizations surveyed. This

therefore limits the likelihood of broader

benefits such as incorporation into global

supply chains, disintermediation, and

improved competitiveness.

Future of E-Commerce :

eMarketer, an Internet technology

(IT) research and reporting firm, estimates

that the dollar figure for e-commerce will

rise from approximately – U.S. $18 billion

in 1998 to

– U.S. $294 billion in 2002. US – Or

maybe $184 billion by 2004.

(Forrester, Business 2.0 Jan 2000)

• In Europe, consumers' internet purchases

will jump from: – US $2.9 billion in 1999

to – US $174 billion in 2005.

• Online business-to-business e-commerce

is projected to speed past $1 trillion in

annual revenue by 2003

#.E-commerce Market Models:

1. Business to Business (B2B) Business to

Business or B2B refers to e-commerce

activities between businesses. These

transactions are usually carried out through

Electronic Data Interchange . This allows

more transparency among business

involved; therefore business can run more

efficiently. E-commerce uses a range of

technologies. Some technologies such as

electronic data interchange (EDI) ,

electronic mail (e-mail), electronic funds

transfer (EFT), are already in wide use.

Some of them (e.g. electronic data

interchange - EDI), will require agreement

between trading partners (buyers and

suppliers) in order to govern their

electronic trading relationship. Electronic

Data Interchange (EDI) (Electronic Data




Interchange) is a standard format for

exchanging business data.

2. Business to Customer (B2C) Business to

Customer or B2C refers to e-commerce

activities that are focused on consumers

rather than on businesses.

3. Customer to Business (C2B) Customer

to Business or C2B refers to e-commerce

activities, which uses reverse pricing

models where the customer determines the

prices of the product or services. There is

increased emphasis on customer

empowerment.

4. Customer to Customer (C2C) Customer

to Customer or C2C refers to e-commerce

activities, which uses an auction style

model. This model consists of person-to-

person a transaction that completely

excludes businesses from the equation.

Advantages of E-commerce:

For Consumers • Reduced Prices •

Global Marketplace • 24 Hour Access For

Businesses • Increased Potential Market

Share • Low-Cost Advertising • Low

Barriers to Entries Disadvantages of E-

commerce7 For the Consumer • Unable to

Examine Products Personally • Online

Purchasing Security For the Business •

Hardware and Software • Maintenance of

Website • Costs • Website Stickiness and

Customer Loyalty • Training and

Maintenance .

How E-commerce will affect the

Economy?

The electronic economy will force

change within nation states. The modern

nation state remains the most prevalent

unit of governance in the developed and

the developing world. The concept has, in

the last 50 years, been extended rather than

retracted. There are now more than 200

hugely different nation states, with

different legal and regulatory systems,

existing in the world. In this context, we

define a nation state as a coherent territory

circumscribed by defined borders over

which the single national government has

legitimate jurisdiction. During its 200 year

history, the nation state has endured many

changes. However, the advent of the

electronic economy is confronting the

nation state, with intimations of a future in

which its relevance to its citizens and

enterprises will be challenged. The

apparatus of economic regulations and

taxation through which nation states

operate was developed to support and

facilitate industrial economy. That

economy produces tangible and location

bound services that are sold and

distributed within and between fixed

borders. In that familiar world of national

and international trade, nation states have a

variety of tools at their disposal to achieve

their economic ends. They can levy tariffs

on imports, raise taxes, protect consumers

rights, punish economic criminals, set

commercial standards, and provide

guarantees of monetary payment. Until

recently, these tools were supported by

governments majority control over

communications networks and information

dissemination . Because of the emergence

of global communications networks, the

nation state is gradually losing monopoly

control of information and financial flows.

Private individuals and enterprises and

groups now have the ability to source ,

package, and transmit information in

compressed time and space. Through

―digitization‖ currency, services, and even

some goods can be conveyed immediately,

transacted invisibly across the globe.

Interactive networks are creating a new,

network-linked world without borders, in

which many commercial transactions are

beyond the reach of national jurisdictions,

laws, and taxation systems. As a result,

many of the economic instruments and

processes of the nation state need to be

reexamined in the light of these new

challenges. It is nation state powerless

before this new global economic system

?As electronic commerce grows, there is

some risk that those nation states that have

not fully embraced the changes could

become marginal to the creation of

economic value and electronic economy?

Could the changes erode the individuals

sense of national belonging, undermine tax




bases, bypass national laws and undermine

the rights of citizens?

Benefits of e-commerce on Economy: The benefits of e-commerce on

economy are classified into three groups:

firms, prices, productivity. A combination

of technological and market forces have

compelled companies to examine and

reinvent their supply chain strategies. To

stay competitive, firms have searched for

greater coordination and collaboration

among supply chain partners to wring out

the inefficiencies that might exist within

firm transactions. Many of the transactions

can be done externally, via electronic

markets. The Internet and its applications

have thus served to enhance the process to

increase efficiencies in supply chain

management The available empirical

evidence on price is mixed. Some of the

first studies found that prices of goods sold

through the Internet were on average

higher than their equivalent purchased

through traditional retailers. A more recent

study, however, found prices for books

and CDs on average to be about 10 per

cent lower on the Internet compared with

traditional retailers in the United Most

importantly, productivity increased not

only in the information and

communication producing sectors but in

sectors of the economy that do not produce

information and communications

technology . In other words, users of these

technologies also benefited from increased

productivity. Effects of e-commerce on

international trade and employment

Electronic commerce offer important

opportunities to both developing and

developed countries. The development of

e-commerce is likely to have both direct

and indirect impacts on international trade

as well as the labor markets.

Major Hypothesis:

• Women take control. Women make or

influence 80 percent of household sales in

the United States, according to Woman

Trend, despite the fact that they make up

51 percent of the population.

• The untapped get tapped. Two highly

touted markets $509 million health and

beauty, and $513 million grocery still lag

behind expectations.

• More "click and mortar." Traditional

retailers Circuit City, Crate and Barrel,

Sears, Toys R Us, Wal-Mart, and

Federated Department Stores missed the

boat in 1995 and 1996, but rest assured

they "get it" now, and are attempting re-

entry, this time around with more money

and smarts. Watch out.

Brand extension strategy in E-

Commerce domain:

Brand Extension is a wonderful

way to achieve business growth by

exploiting the untapped equity of a brand

to enter new product categories. A well-

executed brand extension strategy can lead

to several benefits- increased brand

visibility and consumer connections,

incremental shelf space at retail, entry into

new distribution channels and enhanced

brand associations.

Research indicates that brand

extensions of existing brands are five

times more successful than launching a

new brand. By setting up positive

consumer expectations about performance

and better retailer focus due to the

anticipated consumer demand, brand

extensions reduce the risk of failure. Also

from a marketing perspective, it is easier

to focus on just the new product rather

than creating awareness for both the new

brand and the new product. Thus, overall,

brand extension can be a very effective

brand and business growth strategy.

However, a significant proportion

of brand extensions are unsuccessful and

thus it requires careful analysis to

determine the right categories for

extension as well as the approach to enter

those categories.

Some key things to consider while

evaluating the categories for extension:

•Existing brand associations and imagery

need to have a good ‗fit‘ with the proposed

categories. For example, Horlicks‘ brand

extension into noodles did not find success




in the Indian market due to the brand‘s

strong association with health (rather than

taste, which is critical for the snacking

category).

•It is easier to extend a brand with abstract

associations into multiple categories. For

example, the brand Porsche has been

successfully extended into several

unrelated categories such as eyewear,

luggage, watches, electronics etc. due to its

abstract association with style and design

rather than just sports-car expertise.

•The proposed extension must offer a clear

differentiation from the competitors while

staying true to the brand‘s core values and

equities. For example, Godrej Consumer

Products (GCPL) recently launched a

premium hair-colour range in India under

the salon brand BBLUNT. With its

services expertise, a cool and funky image

along with a strong foothold in Bollywood,

the brand extension offers a strong

differentiation in a segment dominated by

international brands.

•Size of the proposed category and degree

of saturation should be assessed to

determine the chances of success. It is

relatively easier for a new entrant to

sustain and thrive in a large category.

•Some categories are fragmented and have

no major players with significant market

shares. This could present an attractive

opportunity for brand extensions.

After short listing the categories,

the brand owner needs to evaluate the right

approach to enter those categories. One

approach is for the brand owner to

manufacture and market these products

themselves. An alternative approach is for

the brand owners to allow another

company to produce and market these

products and in return for the use of their

brand, charge the manufacturer a royalty

fee. Such an arrangement is called brand

licensing and can be a very lucrative yet

low-cost and low-risk brand development

strategy. Several global brands including

Philips, Honeywell, DuPont, Armani,

Versace, Calvin Klein and Ferrari have

embraced the brand licensing approach to

extend into non-core categories and grow

their brands.

The right brand extension approach

could be determined using the following

factors: •Product development capabilities:

Entering a new category could involve

significant investments in product design,

development and manufacturing

infrastructure. In such cases, a brand

licensee with product expertise relevant to

the new category could be better suited to

manage the brand extension while the

brand owner maintains control over the

brand image through a rigorous approval

process.

•Size of the category: In some cases the

market size of the proposed category for

brand extension is quite small and

unattractive for the brand owner to invest

their own time and resources which could

be better utilized in the expansion of the

core business. In such cases, the brand

licensing approach could be better suited.

•Distribution channels: Sometimes the

brand extensions are better suited to be

sold through channels which are not being

reached by the brand owner with their core

products. In such cases, a brand licensee

with an existing distribution network in the

new category is critical to achieving faster

retail placement, wider distribution and

hence better results.

Brand extensions can be a significant

boost to your company‘s bottom line but

only if you choose the right categories as

well as the right brand extension approach.

Implementation Post analysis :

As communications costs continue

to fall, the potential for international

outsourcing grows. As a result,

outsourcing management and production

activities will become more important.

Obviously, some sectors and activities

throughout the world are more prone than

others to be affected by developments in e-

commerce. In this respect, there have been

attempts to identify industries or sectors

that may be more predisposed to the




effects of developments in e-commerce

and technology.

For example, a research, based on

criteria that weighed the effect of cost

savings, increases in productivity, industry

readiness and product fitness to e-

commerce, has elaborated an index of

Internet intensiveness. The finding based

on data from the United States and Europe

suggests that the most internet intensive

sectors are electronic components, food,

pharmaceuticals and forest/paper products.

It is likely to expect that in other regions,

these same sectors and industries will be

affected by e-commerce via outsourcing.

At the same time, recent evidence suggests

that transnational corporations are likely to

be the most intensive users of electronic

commerce. The potential benefits from

international e-commerce to a developing

country arise from a reduction in the cost

of imports as much as from an increase in

the price received for exports.

Several recent studies have

suggested that trade also stimulates

internet use. For example, a study suggests

that the extent to which a country is

integrated into the global economy can

play a role in its access to IT. Countries

with greater contact, either via trade,

tourism, or geographical location, with the

outside world, are more likely to be

advanced in digital technology than other

countries . Several recent studies have

asked whether internet use affects trade.

For example, using data from 20 low and

middle income countries in Eastern Europe

and Central Asia, a research shows that

enterprises with internet connections

export more, as a share of their total sales,

than enterprises without connections. In

addition, using a gravity model of trade,

another research find that Internet use

appears to be significantly correlated with

trade after 1996, although it finds only a

weak correlation in 1995 and 1996. The

same research also found that internet has

a greater effect on trade in developing

countries than it does in developed

countries. In a second paper, same

researchers find that exports of services to

the United States grew more quickly for

countries with greater internet penetration

in a sample of 31 middle and high-income

countries. Developing countries with

higher Internet penetration export more to

high-income countries than do developing

countries where penetration is lower.

However, they do not appear to export

more to other developing countries and

high-income countries with greater

Internet penetration do not appear to

export more to either developing or

developed countries. These results make

intuitive sense. First, Internet access is so

common among manufacturing enterprises

in high-income countries that the

differences in the number of internet users

as a percent of the population probably

reflects differences at the consumer, rather

than the enterprise, level in developed

countries. In developing countries,

contrarily, many manufacturing enterprises

remain unconnected. Second, because

Internet access is less common in

developing countries than in developed

countries, being connected to the Internet

would seem to be a greater advantage for

enterprises in developing countries with

respect to exporting to developed

countries. Finally, because of strong

regional differences in income, and taking

into account the fact that most exports

from developing countries to other

developing countries will be within the

same region, communication costs will

presumably be greater for exports to

distant developed countries than it would

be for exports to neighboring developing

countries

Conclusion: Electronic commerce may have

large economic effects in the future.

Internet commerce will change the face of

business forever. Moreover, e-commerce

will change banking in 21st century. The

e-commerce has affected the global

economy in many different ways.

First of all, it has affected the

information technology, and all the




economic sectors, all and above e-

commerce has enhanced the productivity

growth worldwide and here we are going

to discuss this impact, they are able to

identify the number of qualified people

needed to advance their country‘s

information economy or to calculate the

amount of investments needed to provide

business with access to the internet.

Some countries are already

benefiting from the results, they are now in

opposition to benchmark their economies

with competitors internationally and there

are many ways to accelerate the growth of

productivity but the reason for this is

rather controversial. Banks and financial

services companies in the developing

countries will need to adopt online

payment system, to obtain e-trade finance

and equity investment, tourism and its

internet incarnation is regularly cited as

one of the fastest growing e-commerce

sectors.

The impact of e-commerce on

developing countries could be even

stronger than that on developed countries

because the scope for reducing

inefficiencies and increasing productivity

is much larger in the developing countries.

By cutting costs, increasing efficiency and

reducing time and distance, e-commerce

could become an important tool for

development.

References:

1. https://www.statista.com/statistics/220

177/b2c-e-commerce-sales-cagr-

forecast-for-selected-countries/

2. Wienclaw, Ruth A. "E-Commerce."

Research Starters: Business, 2013.

EBSCOhost,

ezproxy.mga.edu/login?url=http://searc

h.ebscohost.com/login.aspx?direct=tru

e&db=ers&AN=89163657&site=eds-

live&scope=site.

3. Power, Michael 'Mike' (19 April

2013). "Online highs are old as the net:

the first e-commerce was a drugs

deal". The Guardian. London.

Retrieved 17 June 2013.

4. Tkacz, Ewaryst; Kapczynski, Adrian

(2009). Internet — Technical

Development and Applications.

Springer. p. 255. ISBN 978-3-642-

05018-3. Retrieved 28 March 2011.

The first pilot system was installing in

Tesco in the UK (first demonstrated in

1979 by Michael Aldrich).

5. 1988 Palmer.C Using IT for

competitive advantage at Thomson

Holidays, Long range Planning Vol 21

No.6 p26-29, Institute of Strategic

Studies Journal,London- Pergamon

Press [now Elsevier.B.V.] December

1988.

6. "E Commerce – Essays –

Hpandurang92". Study mode.

Retrieved 17 June 2013.

7. "Online shopping: The pensioner who

pioneered a home shopping

revolution". BBC News. 16 September

2013.

8. Aldrich, Michael. "Finding Mrs

Snowball". Retrieved 8 March 2012.

9. "The Electronic Mall". GS Brown. 30

April 2010. Retrieved 17 June 2013.

10. "Tim Berners-Lee: WorldWideWeb,

the first Web client". W3. Retrieved 21

December 2012.

11. Geiger, Conrad. "NeXT Nugget

News". next.68k.org. Conrad Geiger.

Archived from the original on 8

September 2015.

12. "AppWrapper Volume 1 Issue 3 Ships"

(press release).

13. "Attention Shoppers: Internet Is

Open". The New York Times. 12

August 1994.

14. Kevin, Kelly (August 2005), "We Are

the Web", Wired, 13 (8)

15. "First Electronic Stamps Being Put to

Test". Sunday Business. 6 April 1998.

Retrieved 16 July 2013.

16. Teriz, N (2011). "The impact of e-

commerce on international trade and

employment". Procedia - Social and

Behavioral Sciences. 24: 745–753.

doi:10.1016/j.sbspro.2011.09.010.

Retrieved 2017-05-11.




17. "eBay acquires PayPal". Investor.

eBay. Retrieved 21 December 2012.

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Heroes". Sino Foreign Management.

Archived from the original on 23

February 2012. Retrieved 3 September

2011.

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Business.com for $345M". Domain

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2011.

20. "Amazon Buys Zappos; The Price is

$928m, not $847m". TechCrunch. 22

July 2009. Retrieved 21 December

2012.




RECENT TRENDS IN NEWSPAPER MARKETING

NEETA MANOHAR KEDAR

Research Scholar in Commerce,

Pune, Maharashtra.

DR. P. V. SATHE

Professor in Commerce,

B. M. College of Commerce, Pune,

Maharashtra

Abstract

Newspaper has become a crucial part of any modern society. This is one of the most

important consumer products of our daily life. Like all other consumer goods newspaper

industry requires some special marketing efforts. The ever-changing newspaper industry

provides publishers with many challenges. But the changes also give them the opportunity to

be creative with how they market their newspapers. The main focus of this article is to

describe the recent trends in marketing the newspaper.

Keywords: Newspaper, Newspaper marketing Strategy, Promotional device, Reader

Engagement.

Introduction:

A newspaper is a serial publication

issued at frequent intervals and devoted

primarily to news. Newspapers are not only

the collectors of news but they have

accounts of the activities of a country‗s

social, political, cultural activities with all

sourceful objectives. Modern newspaper is a

history in pieces. It is a powerful report of

the daily life. The modern news for the sake

of future reminds the lessons of past to

balance the present times. Newspaper in

modern times is much more interesting and

fruitful publication in comparison to a noval

written and presented in visual form with

status full lifestyle.- Arvind Kumar (Ex.

Editor ‗Madhuri‗)

Most newspapers are issued daily or

weekly. Some are published semi-weekly,

and there have been rare example of

fortnightly and monthly newspaper.

Having correct and fresh news, articles and

other information, which are to be informed

to readers in a time frame of daily or weekly

schedule in printed folder is called

newspaper. - Free News Dictionary

Newspaper Marketing:

Newspapers face unrelenting

competition from other consumer

information sources. Cable television

provides 24-hour-a-day news along with in-

depth coverage of major events and news

stories. Broadcast and cable channel Internet

sites often cover additional story angles and

frequently update content in close to real

time. In contrast, a newspaper operates on

non-negotiable production deadlines that

limit the freshness of its content. This

reduced ability to provide current news, plus

readers' tendency to only view select

newspaper sections, has helped drive a

decline in overall newspaper circulation. The

marketing-mix is pressurizing the

newspapers production houses to make

changes in their management process and its

attitudes.

Circulation and Advertising to a

newspaper industry is what blood circulation

is to a human body. These are the two main

sources of income. But advertisement

income depends on the circulation of a

newspaper. Circulation is the force that

makes advertisements pay.So every

newspaper plans its strategy to increase their

circulation. They plan their product to meet

demands of customer or readers.

Significance of marketing newspaper:

The heart of your business success

lies in its marketing. Most aspects of your

business depend on successful marketing.

The overall marketing umbrella covers

advertising, public relations, promotions and

sales. Marketing is a process by which a

product or service is introduced and




promoted to potential customers. The other

benefits of marketing newspaper are:

1. Higher sales

2. Company reputation

3. Targeted Geographic Audience

4. Build trust

5. Promotion of your business

6. Enhanced brand recognition

7. Improving the businesses profits by

boosting sales.

Trends in newspaper marketing: Here are

key trends in marketing newspaper to

prepare for in the coming year:

New promotional devices

There has been an increase in

promotions with financial incentives for the

reader. This is a much more cost-effective

promotion than having to buy and produce

numerous free give-aways. The grocery

promotions have achieved some good uplifts

in sales.

These promotions have also led to a

new wave of substantial free product offers

whereby the reader collects tokens in return

for a high value or cutting-edge product such

as digital TV boxes, MP3 players and so on.

These offers have the advantage of locking

the reader in for a period of time and not just

the one-off occasion of a cover-mounted

promotion.

However, though there are fewer

cover-mounted give-aways, there is still a

need to attract readers with product offers

and this is now increasingly achieved

through ‗Free for every Reader‘ offers that

allow the reader to pick up a free product at

a retailer or by post.

Locking readers in

By far the biggest change in

newspaper marketing has been the

concentration on ‗locking readers in‘ via

subscriptions, newsagent home delivery or

direct home delivery. Once readers are

locked into these schemes, there is a growing

emphasis on readers‘ clubs – whereby loyal

readers are offered a raft of exclusive offers

to keep them subscribing..

There is also a very aggressive marketing

campaign in the quality press to get readers

to subscribe to up-front subscriptions

schemes. Full-page adverts appear each

week offering readers gifts such as free

magazine subscriptions, or free cinema

tickets to readers who subscribe.

Reader engagement The other main area of change is

‗reader engagement‘ marketing. Sponsorship

of events and festivals, exclusive reader

evenings, national competitions and awards

ceremonies are increasing as newspaper

publishers seek to interact with their readers

and achieve brand awareness for their

papers.

Partnership marketing

This brings on to the newest and

potentially largest area of opportunity,

partnership marketing. The reduction in

marketing spends is not confined solely to

newspapers - it has affected many industries.

This has started to open up true partnership

opportunities whereby newspapers work

with brands to mutual benefit, for example

the Times with Pizza Express, News of the

World with Nails Inc, the Guardian with the

British Red Cross, and the Independent with

the RSPB. Partnerships are starting to

develop whereby content, memberships and

marketing are being genuinely jointly

developed between companies on an

ongoing basis.

Pairing contests

Newspapers have been pairing

contests of different sorts with free

subscription of the newspaper for a period of

time for contest winners. Other than that,

they invite their current and potential

advertisers to sponsor contests in exchange

for publishing their company logos on the

newspaper and on the newspaper webpage.

Essay writing contests

Newspapers have been sponsoring

essay writing contests on their own during

special occasions (i.e. national holidays,

popular events, etc.) to boost readership by

soliciting essay entries from their target

market, and publishing these essays on

scheduled dates to encourage people to buy

copies of the newspaper.

In-house print advertisements




Newspapers publish in-house print

advertisements in two ways: corporate ad

and testimonial ad Example of a testimonial

ad would be a newspaper featuring a

supposedly real-life story of a real estate

agent sharing his/her success story with her

occupation with the help of the concerned

newspaper‘s paid or free promotion of

his/her real estate job.

Social networking

Newspapers have been actively

pursuing social networking by inviting their

readers to post comments and questions

online and making their newsroom staff and

editorial members to send feedback in the

hope of boosting interaction with them, and

in the process creating virtual relationships

between the newspapers and the public.

Providing freebies

Newspapers have been providing

freebies to its area distributors (newspaper

bulk outlets and retail stores) by handing out

give-away promotional items like pens,

umbrellas, caps, T-shirts, jackets, mugs,

stationery, etc. with the newspapers‘ logo

printed on them.

Sponsoring and participating in live

events

Newspapers have been sponsoring

and participating in live events, TV sports

shows, festivals, exhibits, conventions, and

other relevant affairs and use this approach

cross marketing with other company

participants to grow their readership base.

Include Readers

Let readers in your community put

themselves in the newspaper. A chance to

express their opinions through letters to the

editor was a noble start. Take it a step further

by allowing readers to become the reporter.

Offer them a chance to submit their own

photos and news stories, giving them

incentive to purchase a handful of copies and

tell others about your paper.

Special Sections

Many resourceful small-market

newspapers have launched themed special

sections that appear within the larger

newspaper. These folded tabloids may

include an early June high-school graduation

insert, an August ―Back to School Guide‖ or

a November ―Holiday Gift Guide.‖

Communities that strongly support high

school sports may embrace a football-

focused insert appearing just prior to the

football season. Small-market newspapers

can also publish monthly inserts showcasing

regional attractions and events. Health-

focused publications often feature articles

written by local health practitioners, along

with adjacent advertisements for those

practices. Inserts of all types may offer

attractive ad rates to encourage new

advertisers or to entice existing clients with

multi-issue discounts.

Graphics and Consulting Services

Many newspapers employ talented

graphic designers who use powerful graphics

programs to create visually stunning print

and online ads. The newspaper can minimize

designers' down time by marketing turnkey

graphics design and production capabilities

to local businesses. Finished products can

include fliers, brochures and other company-

specific promotional materials. Although

some current advertisers may use the

service, the newspaper will also appeal to

non-advertisers by offering attractive prices.

A newspaper's Internet advertising expert

can enhance the package with website design

and online marketing components.

Online Sponsorships

Newspaper-operated websites market

online subscriptions to readers who receive

news via Smartphone or other electronic

medium; or to readers who live in other

states or countries. Local readers may also

visit the website often for breaking news

updates. While many businesses place full-

color online advertisements, some out-of-

the-box advertiser‘s sponsor frequently

viewed online features. For example, a

coastal newspaper's readers often monitor

weather forecasts, especially during

hurricane season. A disaster restoration

company would likely receive increased

visibility by sponsoring the weather forecast

and hurricane map. Likewise, a funeral home

would likely benefit by sponsoring the




newspaper's obituary page. Encourage ad

reps to emphasize the synergy of advertiser

focus and online content as a way of

encouraging new sponsorships.

Smart phones Smart phones are commonly used

nowadays. Every person has access to

smartphones. Smartphone are small portable

devices used for communication with

additional functionality of cameras, music

players etc. Mobile cameras are the main

source of live reporting and mobile

journalism now.

Newspaper Kiosks

Newspaper businesses can establish

kiosks in well-traveled areas like shopping

malls, post offices or train stations as a

marketing strategy. Kiosks can sell current

copies of the newspaper, but also provide

customer services, such as subscription

renewals, address changes and classified ad

sales. Marketing tactic can include selling

branded goods including canvas bags, hats

or coffee cups emblazoned with the

newspaper logo.

Branded Promotional Gifts

Giving away functional branded gifts

can be a more effective promotional move.

Ink pen, key chain or calendars are gifts you

can give your customers that they may use,

which keeps your newspaper in plain sight.

Customer Appreciation Events

Emphasis, on customer appreciation

event with free refreshments and door prizes

will attract customers, with no purchase of

anything necessary, is an effective way to

draw not only current customers but also

potential customers.

After-Sale Customer Surveys

Contacting customers by telephone

or through the mail after a sale is a

promotional strategy that puts the

importance of customer satisfaction first

while leaving the door open for a

promotional opportunity. Skilled salespeople

make survey calls to customers to gather

information that can later be used for

marketing by asking questions relating to the

way the customers feel about the newspaper.

Conclusion:

Successful marketing requires us to

not only know what customers want to buy,

but also how they want to buy. We need to

double our efforts to make sure we are

providing the options and capabilities

customers expect from any business. To do

anything less, is to negate the benefits gained

from understanding customers, creating

products that fulfill their needs and

marketing smart. Hence, effective marketing

strategies help to increase readership and

newspaper business in competitive world.

References:

1. Aleesha Patel, (2010), ―The Survival of

the Newspaper in the Digital Age of

Communication‖, Published by Leonard

N. Stern School of Business, New York

University.

2. Rahmani, H. Mujaviri and A Allah

Baksh (2012), ―Reviewing the impact of

advertising and sales promotion on brand

with‖, the Journal of Business Studies

Quarterly, Vol. 4., No. 1.

3. Hooley, G., Piercy, Nigel F., and

Nicoulaud, (2009). Marketing Strategy

and Compatitive Positioning (4th ed.).

Delhi: Pearson Education.

4. Baack, K. E. (2009). Integrated

Advertising, Promotion, and Marketing

Communications (3rd ed.). Delhi:

Pearson Education.

5. Cooper, D. and Schindler Pamela,

(2007). Marketing Research: Concepts

and Cases (2007 ed.). New Delhi: Tata

McGraw Hill.

6. Strauss Judy and Frost Reymond, (2012).

E- Marketing (6th ed.). New Delhi: PHI.




BASIC CONCEPTS OF GOODS AND SERVICES TAX IN INDIA

SUPRIYA UTTAM JADHAV

M.Phil.Scholars,

C.D Jain Collage of Commerce,

Shrirampur, Maharashtra.

Abstract

This paper is an analysis of what the impact of GST (Goods and Services Tax) will be

on Indian Tax Scenario. Here stated with a brief description of the historical scenario of

Indian taxation and its tax structure. Then the need arose for the change in tax structure from

traditional to GST model. GST has be detailed discuss in this paper as the background, silent

features and the impact of GST in the present tax scenario in India. The Goods and Services

Tax (GST) is a value added tax to be implemented in India, the decision on which is pending.

GST is the only indirect tax that directly affects all sectors and sections of our economy.

Ignorance of law is no excuse but is liable to panel provisions, hence why not start learning

GST and avoid the cost of ignorance. Therefore, we all need to learn it whether willingly or

as compulsion. The goods and services tax (GST) is aimed at creating a single, unified

market that will benefit both corporate and the economy. The changed indirect tax system

GST-Goods and service tax is planned to execute in India. Several countries implemented this

tax system followed by France, the first country introduced GST. Goods and service tax is a

new story of VAT which gives a widespread setoff for input tax credit and subsuming many

indirect taxes from state and national level. The GST Implementation is not yet declared by

government and the drafting of GST law is still under process and a clear picture will be

available only after announcement of Implementation. India is a centralized democratic and

therefore the GST will be implemented parallel by the central and state governments as

CGST and SGST respectively. The objective will be to maintain a commonality between the

basic structure and design of the CGST, SGST and SGST between states .In this article, I

have started with the introduction, in general of GST and have tried to highlight the

objectives the proposed GST is trying to achieve. Thereafter, I have discussed the possible

challenges and threats; and then, opportunities that GST brings before us to strengthen our

free market economy.

Key Words: GST, CGST, SGST, VAT, INPUT CREDIT

What is Tax?

The word tax is derived from the

Latin word ‗taxare‘ meaning to estimate. A

tax is not a voluntary payment or donation,

but an enforced contribution, exacted

pursuant to legislative authority" and is any

contribution imposed by government

whether under the name of toll, tribute,

impost, duty, custom, excise, subsidy, aid,

supply, or other name.‖In 1922, the country

witnessed a paradigm shift in the overall

Indian taxation system. Setting up of

administrative system and taxation system

was first done by the Britishers. Broadly,

there are two types of Taxes viz. Direct and

Indirect taxes. Taxes in India are levied by

the Central Government and the State

Governments. Some minor taxes are also

levied by the local authorities such as

Municipality or Local Council. The authority

to levy tax is derived from the Constitution

of India which allocates the power to levy

various taxes between Centre and State.

Definition of GST:

―GST is a tax on goods and services

with value addition at each stage

having comprehensive and continuous chain

of set of benefits from the producer‘s or

service provider‘s point up to the retailers

level where only the final consumer should

bear the tax.‖




Objectives of GST: 1. One Country – One Tax.

2. Consumption based tax instead of

Manufacturing.

3. Uniform GST Registration, payment and

Input tax Credit.

4. To eliminate the cascading effect of

Indirect taxes on single transaction.

5. Subsume all indirect taxes at Centre and

State Level under.

6. Reduce tax evasion and corruption.

7. Increase productivity.

8. Increase Tax to GDP Ratio and revenue

surplus.

9. Increase Compliance.

10. Reducing economic distortions.

GST Advantages and Disadvantages:

The GST is a Value added Tax

(VAT) is proposed to be a comprehensive

indirect tax levy on manufacture, sale and

consumption of goods as well as services at

the national level. It will replace all indirect

taxes levied on goods and services by the

Indian Central and State

governments. Though GST is considered to

be a historical tax reform in India, it also has

some demerits. We here would look into

GST Taxation and deal with its advantages

and disadvantages.

GST Advantages:

1. GST is a transparent tax and also reduces

number of indirect taxes.

2. GST will not be a cost to registered

retailers therefore there will be no hidden

taxes and the cost of doing business will

be lower.

3. Benefit people as prices will come down

which in turn will help companies as

consumption will increase.

4. There is no doubt that in production and

distribution of goods, services are

increasingly used or consumed and vice

versa.

5. Separate taxes for goods and services,

which is the present taxation system,

requires division of transaction values

into value of goods and services for

taxation, leading to greater

complications, administration, including

compliances costs.

6. In the GST system, when all the taxes

are integrated, it would make possible

the taxation burden to be split equitably

between manufacturing and services.

7. GST will be levied only at the final

destination of consumption based on

VAT principle and not at various points

(from manufacturing to retail outlets).

This will help in removing economic

distortions and bring about development

of a common national market.

8. GST will also help to build a transparent

and corruption free tax administration.

9. Presently, a tax is levied on when a

finished product moves out from a

factory, which is paid by the

manufacturer, and it is again levied at the

retail outlet when sold.

10. GST is backed by the GSTN, which is a

fully integrated tax platform to deal with

all aspects of GST.

GST Disadvantages:

1. Some Economist says that GST in India

would impact negatively on the real

estate market. It would add up to 8

percent to the cost of new homes and

reduce demand by about 12 percent.

2. Some Experts says that CGST (Central

GST), SGST (State GST) are nothing but

new names for Central Excise/Service

Tax, VAT and CST. Hence, there is no

major reduction in the number of tax

layers.

3. Some retail products currently have only

four percent tax on them. After GST,

garments and clothes could become more

expensive.

4. The aviation industry would be affected.

Service taxes on airfares currently range

from six to nine percent. With GST, this

rate will surpass fifteen percent and

effectively double the tax rate.

5. Adoption and migration to the new GST

system would involve teething troubles

and learning for the entire ecosystem.

India GST – The difference between

CGST, SGST and IGST CGST, SGST and IGST are three

components of GST tax law. CGST and

SGST are applicable within the state while

https://gst.caknowledge.in/gst-registration/

https://gst.caknowledge.in/gst-tax-payment-rules/

https://gst.caknowledge.in/input-tax-credit-gst-law/

https://www.indiafilings.com/learn/gst-registration-extension/






IGST is applicable in the course of interstate

trade and commerce. Let us understand the

difference between the trios,

Basis of

Distinctio

n

Central

GST

State

GST

Integrat

ed GST

Meaning

It is

levied by

Central

governm

ent to

replace

the

existing

tax like

service

tax,

excise,

etc

It is

levied by

State

governm

ent to

replace

the

existing

tax like

sales tax,

luxury

tax,

entry

tax, etc.

It is a

combine

d form of

CGST

and

SGST

levied

and

collected

by

Central

governm

ent.

Applicab

ility

It is

applicabl

e only

within

the state

It is

applicabl

e only

within

the state

It is

applicabl

e only in

the

course of

interstate

supply.

Input

Tax

Credit

The

credit of

CGST,

is

available

only

against

CGST

and

IGST

The

credit of

SGST is

available

only

against

SGST

and

IGST

The

credit of

IGST is

available

against

CGST,

SGST

and

IGST.

Collectio

n of tax

It is

collected

by

central

governm

ent

It is

collected

by State

governm

ent

It is

collected

by

central

governm

ent

Exemptio

n limit

The

exempti

on limit

of Rs.20

Lakh is

applicabl

e

The

exempti

on limit

of Rs.20

Lakh is

applicabl

e

No

exemptio

n limit is

applicabl

e.

Composit

ion

Scheme

The

dealer

can use

the

benefit

of

composit

ion

scheme

up to

turnover

of 50

lakh.

The

dealer

can use

the

benefit

of

composit

ion

scheme

up to

turnover

of 50

lakh.

Composi

tion

scheme

is not

applicabl

e in the

course of

interstate

supply.

Free

Supplies

Applicab

le on

free

supplies

Applicab

le on

free

supplies

Applicab

le on free

supplies

Registrat

ion

No

registrati

on till

the

turnover

crosses

20 Lakh

(10 Lakh

in north

eastern

states).

No

registrati

on till

the

turnover

crosses

20 Lakh

(10 Lakh

in north

eastern

states).

Registrat

ion

mandator

y if any

supply is

made

outside

the state.

THE IMPACT OF GST (GOODS AND

SERVICES TAX) IN INDIA

After a lot of deliberation, our GST

council has finalized the rates for all the

goods and major service categories under

various tax slabs, and the GST is expected to

fill the loopholes in the current system and

boost the Indian economy. This is being

done by unifying the indirect taxes for all

states throughout India.

The tax rate under GST are set at 0%,

5%, 12%, 18% and 28% for various goods

and services, and almost 50% of goods &

services comes under 18% tax rate. But how

is our life going to change post GST. Let‘s

see how GST on some day-to-day good and

services will have an impact on an end user‘s

pocket.

1) Footwear& Apparels/Garments: Footwear costing more than INR 500 will

have a GST rate of 18% from an earlier rate

https://www.hubco.in/articles/7-mistakes-to-avoid-by-msme-and-startups-under-proposed-gst-regime






of 14.41 rate but rates for the footwear

below INR 500 has been reduced to 5%. So,

you need to shell out more for buying a

footwear above INR 500/-. And with respect

to the ready-made garments, the rates have

been reduced to 12% from an existing

18.16% this will make them cheaper.

2) Cab and Taxi rides: Now, taking an Ola

or an Uber will be cheaper because the tax

rate has come down to 5% from an earlier

6% for a cab booking made online.

3) Airline tickets: Under the GST, tax rate

for economy class for flight tickets is set at

5% but the tax for business class tickets will

have a higher tax rate of 12%.

4)Train Fare: There will not be much of an

impact. The effective tax rate has increased

from 4.5% to 5% in GST. But, a passenger

who travels for business trips can claim

Input Tax Credit on their rail ticket which

can help them to reduce expenses. People

travelling by local trains or in the sleeper

class will not be affected, but first-class &

AC travellers will have to pay more.

5) Movie Tickets: Movies tickets costing

below INR 100 will be charged a GST rate

of 18% but prices above INR 100 will have a

higher tax rate of 28%.

6) Life Insurance Premium: The Premium

Amounts on policies will rise, with an

immediate impact can be seen on your term

and endowment policy premiums as the rates

have been increased under GST across life,

health and general insurance.

7) Mutual funds Returns: GST impact on

your returns from mutual funds‘ investments

will largely be marginal as the GST will be

charged on the TER i.e. Total Expense Ratio

of a mutual fund. The TER is commonly

called as expense ratio of a mutual fund

company, and the same is set to go up by

3%. The return what you get as an investor

will be reduced to that extent unless the

respective mutual fund company i.e. AMC

absorbs it but that anyhow will be a marginal

difference.

8) Jewellery: The gold investment will

become slightly expensive because there will

be 3% GST on gold & 5% on the making

charges. The earlier tax rate on gold was

around 2% in most of the states and the GST

is increased from the existing rate to around

2% to 3%.

9) Buying a Property: Under construction

properties will be cheaper than read-to-

move-in properties. The GST rate for an

under-construction property is 18% but the

effective rate on this kind of property will be

around 12% due to input tax credits the

builder will avail of.

10) Education& Medical Facilities: Education and Medical sectors have been

kept outside the GST ambit and both the

primary education & healthcare is exempt

from GST. It means a consumer will not pay

any tax for the money you spent on these

services. But due to increase in the rate of

taxes for certain goods & services as

procured by these organizations, they may

pass on the additional tax burden to the

consumers.

11) Hotel Stay: For your hotel stay, if your

room tariff is less than Rs 1,000, then there

will be no GST, but anything above Rs 5,000

will attract 28% tax.

12) Buying a Car: Most of the cars in the

Indian market will become slightly cheaper,

except for the hybrid cars because the GST

rate will be 28% tax on all the vehicles

irrespective of their make, engine capacity or

model. However, over and above this 28%,

an additional cess will be levied which can

be either 1%, 3% or 15 %, depending on the

particular car segment.

13) Mobile Bills: People will have to pay

more on mobile phone bills as GST on

telecom services is now 18%, as opposed to

the earlier tax rate of 15%. However,

telecom companies may absorb this 3% rise

due to fierce competition.

14) Restaurant Bills/EATING OUT: Your

restaurant bill would depend on whether you

dined at an AC or Non-AC establishments

which do not serve alcohol. Now dining at

five-star hotels will be charged at 18% GST

rate and the Non-AC restaurants will be

charged 12% and a 5% GST will be charged

from small hotels, dhabas and restaurants

that do not cross an annual turnover of INR

50 Lakh.




15) IPL & other related events: Events like

IPL i.e. sporting events will have a 28%

GST rate which is higher than the earlier

20%.rates. This will increase the price of

your tickets. And the GST rate for other

events like theatre, circus or Indian classical

music shows or a folk dance performance or

a drama show will be at 18% GST rate, this

is lesser than the earlier tax rate.

16) DTH and cable services: The money

you pay towards your DTH (Direct-To-

Home) connections or to your cable operator

will reduce a bit as the rate is fixed at 18%,

which is lower than the earlier taxes which

were comprising of entertainment tax in the

range of 10% to 30%, apart from the service

tax of 15%.

CONCLUSION

GST is the most logical steps towards

the comprehensive indirect tax reform in our

country since independence. GST is liveable

on all supply of goods and provision of

services as well combination thereof. All

sectors of economy whether the industry,

business including Govt. departments and

service sector shall have to bear impact of

GST. All sections of economy viz., big,

medium, small scale units, intermediaries,

importers, exporters, traders, professionals

and consumers shall be directly affected by

GST...One of the biggest taxation reforms in

India -- the Goods and Service Tax (GST) --

is all set to integrate State economies and

boost overall growth. GST will create a

single, unified Indian market to make the

economy stronger. Experts say that GST is

likely to improve tax collections and Boost

India‘s economic development by breaking

tax barriers between States and integrating

India through a uniform tax rate. Under

GST, the taxation burden will be divided

equitably between manufacturing and

services, through a lower tax rate by

increasing the tax base and minimizing

exemptions.

References

1) http://goodsandservicetax.com/gst/showt

hread.

2) http://en.wikipedia.org/wiki/Goods_and_

Services_Tax_(India) accessed on 15 Jan

2014.

3) http://www.taxmanagementindia.com/vis

itor/de

4) http://www.gstindia.com/http://www.thehi

ndubusinessline.com/todays-paper/tp-

others/tp- taxation/article2286103.ece

5) http://economictimes.indiatimes.com/top

ic/GST

6) http://www.moneycontrol.com/news-

topic/gst/

7) http://www.business-

standard.com/article/economy-

policy/gst-reform-may-be-implemented-

after-elections-ubs-

114011200205_1.html

http://goodsandservicetax.com/gst/showthread.php?69-CHAPTER-X-Goods-and-Services-Tax-The-way-forward

http://goodsandservicetax.com/gst/showthread.php?69-CHAPTER-X-Goods-and-Services-Tax-The-way-forward

http://en.wikipedia.org/wiki/Goods_and_Services_Tax_(India)



http://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=1226

http://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=1226

http://www.gstindia.com/



http://www.thehindubusinessline.com/todays-paper/tp-others/tp-taxation/article2286103.ece

http://www.thehindubusinessline.com/todays-paper/tp-others/tp-taxation/article2286103.ece

http://economictimes.indiatimes.com/topic/GST


http://www.moneycontrol.com/news-



http://www.business-standard.com/article/economy-policy/gst-reform-may-be-implemented-after-elections-ubs-114011200205_1.html










A FUTURISTIC STUDY OF E-BUSINESS MODEL

WITH REFERENCE TO ALL TRANSPORT INDIA PVT. LTD., DEOLA

DR. SUBHASH WADEKAR

Principal,

Hon. Balasaheb Jadhav Arts, Commerce and Science College,

Ale, Pune, India.

Abstract

Today is the world of changing era, with modern changes in trends, education,

technology and higher standard of living changing customer‟s need and preference, their

high expectations for new and improved products have enforced the companies to bring new,

modern and superior products in the market. For this every company must establish and

evaluate new products development ideas and strategies. For the same researcher was

inspired to study and analyze the e-Business online Model in transportation and factor that

attracts transport customers for this e–Business online model. The main focus of the study

was on Transportation Business, the model or Modes used of generating business. As

transporting is main importance in daily routine for any goods, human from one place to

another place Ensures that time needed for transporting should be minimum with least cost.

There are many people using the internet for all sort of any small work. Study was carried

out using gap analysis regarding current transportation method used for different modes with

new innovative ideas so as to keep pace with today‟s changing marketing environment. The

study is based on Secondary data and primary survey carried for Transporters in Deola

tahsil of Nashik district to Study the e-Business online model of All Transport India Pvt. ltd. It

was found that e-Business Transport model worked for the company and looking to explore

for other regions too.

Keywords: - E-Business, model, Transport, Road, Railway

1) INTRODUCTION

From the ancient Days, for Progress of

society there was an urge identified through

human sensitivity for mobility i.e. transports.

This ancient history of mobility or transport

is the history of civilization. A basic

infrastructure is a need for any country to

develop better momentum with modern and

efficient Transport. Proper, extensive and

efficient Road Transport is the main factors

for better history of any nation.

‗Transporters' perform one of the most

important functions for any nation, at

various stages of advanced civilization. In

which roads are similar to as veins and

arteries of any nation, goods & passenger

transported are compared to blood in

circulation.

Modes of Transport: Transportation is

generally divided into five modes-

1) Roads

2) Railways

3) Pipelines

4) Waterway

5) Airway

Importance of Transport: Transport is vast

mechanical in current scenario. The main

stream line of our economy is comprised

from with Transportation routes and

channels. They serve as a bridge to bring

producers and consumers of goods nearby.

The transport or logistics boost the

economic, social and cultural life. All

Transport India pvt ltd ( www.

alltransportindia.com) is an online transport

search service engine that helps to find

proper transit system quickly, conveniently

and cost effectively for fulfil all needs of

transporting and travelling .this service

facilitate all requirements of individual to

corporate to get common platform, thus ―the

way ‗comes to you. Visitor to the site get a

unique experiment through a systematically

search and comprehensive local and regional




content. They studied that all people didn‘t

get proper transportation & travelling

system, and even lack of correct information,

people are losing money and time. So,

Shewale Brothers identified difficulties of

people and they got intuition of unique and

different Idea .So they launch solution by

―www. alltransportindia.com‖. Where the

people gets common platform to interact

with each other for purpose of transportation

and travelling. By doing so the company still

had some lacunas like

Total travelling (Transport) data was

not gathered.

Marketing was not enough to create

awareness of Model.

Proper information flow to customer

was not clear.

The researcher indentified the above

problems and did the study to find solution

for the problems.

2) OBJECTIVES OF THE STUDY

1. To understand the current E-business

model.

2. To find the awareness of E-business for

transport in deola.

3. To identify factors that attracts transport

for this E – business model.

3) METHODOLOGY

Exploratory research Design: It was

used to explore the facts and identify

solutions related to above problems. Primary

Data was collected by questionnaire and

secondary data through Newspapers.

Magazines, Text books, marketing reports of

the company, Internet.

DATA SOURCE: RTO office, travelling

agency, Transporting Company.

UNIVERSE:-

1) The data of universe RTO office

2) Travelling Agency

3) Transport company

FRAME:-The Frame of this project is to

―All Vehicle owner in DeolaTaluka.

SIZE: - The sampling size of data 40 vehicle

owner

METHOD: - Judgmental Sampling Method

is used to select the sample.

4) DATA ANALYSES

a) Do you know E- transport business

model?

Table No.1

Respondent Percentage

Yes 30 75%

NO 10 25%

Total 40 100%

Interpretation:-The 75 % people are

aware about E-Transportation business

model and 25 % are not.

b) How do you know about E- transport

business model?

Table No.2

Source Respondent Percentage

Newspaper 8 26%

Friends 10 32%

Banner &

Hoardings

5 16%

Internet 8 26%

Total 30 100%

Interpretation- 32% people are Aware about

E- transport business model through friends,

26% get the information through news

paper, Other 26% through Internet. So

Banners and Hoardings are not that Effective

as only 16% respondents.

c) Which type of transporting vehicle do

you have?

Table No.3


Human

Careers

10 33%

Goods

Career

20 67%

Total 30 100%

Interpretation- 67% of respondents have

goods career while 33 % have human career

vehicles, so scope for Transportation

Business in goods career is more.

d) How many Transportation vehicles do

you have?

Table No.4

Vehicle Respondent Percentage

1-5 5 17%

5-10 15 50%

10-15 10 33%

Total 30 100%




Interpretation- 50% of respondent have

transporting vehicle owned between 5-10

only 17% respondent have less than 5

vehicles. So, major respondents who are in

transportation business have more than 5

vehicles.

e) Maximum order you received from

below location?

Table No.5

Locations Percentage

Village 24%

City 28%

Local Areas 36%

Metro City 12%

Total 100%

Interpretation-36 % of respondent receives

maximum order from local areas, while 28

% receives from city, 24% from villages and

only 12% from Metro city. So it interprets

that maximum orders are from Known

nearby locations only.

f) Rank the mode of receiving order?

Table No.6

Order

Mode

Rank

Telephone 1

Friends &

relatives

2

Transport

Agency

3

Internet 4

Interpretation-The respondents rated the

mode of receiving order as telephone order

given 1st rank, Friends and relative 2

nd,

Transporting agency 3rd

, Internet 4th.

g) How many order do you receive in a

week?

Table No.7

Vehicle

Order


1 5 17%

2 5 17%

3 10 33%

4 10 33%

Total 30 100%

Interpretation-33% of the respondents

receive 3 or 4 orders in a week in current

situation, while 17% receive 1 or 2 orders in

a week. On average 3 or 4 orders are

received in a week.

h) If you receive an order through E-

business then are you interested?

Table No.8


Yes 25 83%

No 5 17%

Total 30 100%

Interpretation-83% respondents would be

happy if they receive order through E-

transport business model, while remaining

17% would not.

i) How many order do you are expect

through E- business model in a week?

Table No.9

Vehicle

Order


3 4 16%

4 6 24%

5 7 28%

6 8 32%

Total 25 100%

Interpretation- 32% of the respondent

expect maximum 6 orders in a week through

the E-business , while 28% expect 5 orders,

24% expect 4 orders and remaining 16%

expect minimum 3 orders in a week. On an

average 5-6 orders in a week through the E-

Business Model.

j) Do you know any other company

having E-business transportation model?

Table No.10


Yes 5 20%

No 20 80%

Total 25 100%

Interpretation-80 % of the respondents don‘t

know about any other company having E-

business transporting model, while 20% feel

they know other company providing the

same.

k) Do you want to be member of this

model?

Table No.11





Yes 20 80%

No 5 20%

Total 25 100%

Interpretation-80% of the respondent wants

to be member of E-business plan for

transportation business, while remaining

20% oppose the same.

l) Why would you like to Purchase this

model?

Table No.12

Respond

ent

Percent

age

Save

Time

9 48%

Save

Mon

ey

11 52%

Tota

l

20 100%

Interpretation- 52% of the respondents

would like to purchase the model for saving

money, while 48% for saving time. Saving

time and money are the reason respondent

want to purchase the E-Business Model

plans.

Existing 20 Customers after two Weeks:

m) Are you interested in renewal of this

model?

Table No.13

Respon

dent

Percent

age

Yes 15 75%

No 5 25%

Tot

al

20 100%

Interpretation-75% of the respondents are

happy to renew the E-business model, while

25% are not sure. Maximum Customers are

happy to renew the model.

n) Are you satisfied with no of orders

received through E-business model?

Table No.14

Source Respondent Percentage

Strongly

Agree

4 20%

Agree 6 20%

NIL 5 25%

Disagree 3 15%

Strongly

Disagree

2 10%

Total 20 100%

Interpretation-40% of the respondent

agree that they are satisfied with the E-

business model and its services, while 25%

fell changes or modification should be done

as the Disagree., while remaining 25% are

not sure that they disagree with the statement

of satisfaction about the E-Business model

and its plans.

5) FINDINGS

75% people are aware about E-transport

business model.

32% people are aware about E-transport

business model by friends recommends.

67% people prefer goods careers for

transporting vehicle.

From above only 36% people have

maximum order from local areas.

83% people are interested receive an

order through E-business model.

80% people are interested and purchased

this E-business model.

30% people are agree that no. of orders

received through E-business model.

6) CONCLUSION

The company are providing for the

fast services in the Deola District. This

company serves a E-commerce model which

emphasis by collecting and displaying the

details of registered vehicle owner. This

Online transport service acts as a search

engine for the customer which percolates the

data at the tips of finger. This result to

enhance the system quickly, conveniently,

transpired and most cost effectively. This

online service facilitates the requirements of

both individual and corporate customers in

single platform. The visitor‘s experiences

unique feel through this online transport

model for searching local and regional

transporters. The present model version

provides a good starting point for future

development.

7) SUGGESTIONS




1. 25 % people unknown about E-transport

business model so that awareness of

internet by giving Advertisement,

Newspaper, TV.

2. Only 16% people are known about E-

business model through Banner&

Hording but whenever the awareness of

internet increased that time affect on E-

transport business model.

3. 33% people use Human careers but to

reduce human effort there can be need

for goods career so that upgraded

technology used instead of human career.

4. From the above data only 12% people

minimum order received from metro city

so that time company need to appointed

sales executive.

5. 17% people are not interested in E-

business so to increase and provide SMS,

online skim and attract the customer for

business.

6. 20 % people are not using E-transport

business model so Awareness about

model is needed like more order given,

save time, save money, not found to

customer.

7. 10% people are strongly disagree so that

disagree customer into agree so

providing offline facility, company

online application, online skim to so

converted the vehicle owner.

REFERENCES

Bibliography:

Books and articles:

1. C. R. Kothari, (2008), Research

Methodology, New Age International

Publishers, Delhi, pp 2-20, 31-52, 95-

112.

2. Philip Kotler and Kevin Lane Keller,

(2007), Marketing Management (12th

edition), Published by Dorling

Kindersley (India) Pvt. Ltd., licenses of

Pearson Education in South Asia, Delhi,

pp 395-400

3. Bright, D.A., Coedy, B., Dushenko,

W.T. & Reimer, K.J. 1994. Arsenic

transport in a watershed receiving gold

mine effluent near Yellowknife, Canada.

Total. Environ. 155, 237-252.

Research papers:

1. Blanke, J. and T. Chiesa. 2007. ―The

Travel Competitiveness Index: Assessing

Key Factors Driving the Sector‘s

Development.‖ In The Tourism

Competitiveness Report 2007:

Furthering the Process of Economic

Development. Geneva: World Economic.

2. ―The Tourism Competitiveness Index

2008: Measuring Key Elements Driving

the Sector‘s Development.‖ In The

Tourism Competitiveness Report 2008:

Balancing Economic Development and

Environmental Sustainability. Geneva:

World Economic Forum. 3–26.

3. Blanke, J., T. Chiesa, and E. Trujillo

Herrera. 2009. ―The Travelling

Competitiveness Index 2009: Measuring

Sectoral Drivers in a Downturn.‖ In The

Tourism Competitiveness Report 2009:

Managing in a Time of Turbulence.

Geneva: World Economic Forum.

Websites:

1. www.transporting company.com

2. www.google.com

3. www.alltransport india.com

4. Transportation from UCB Libraries Gov

Pubs

http://www.google.com/




IMPACT OF GOODS AND SERVICES TAX ON INDIAN ECONOMY

DR. DEEPAK K. SURVASE

Asst. Professor, Dept. of Commerce

S.B.B.alias Appasaheb Jedhe College,

Pune, Maharashtra.

ABSTRACT

The introduction of Goods and Services Tax (GST) would be a very significant step in

the field of indirect tax. The cascading or double taxation effects could be reduced by

combing many central and state taxes. Consumer‟s tax burden will approximately reduce to

25% to 30% after introduction of GST. After introduction of GST Indian products would

became more competitive in the domestic and international markets. This tax would instantly

encourage economic growth. GST with transparent feature will prove easier to administer. In

this paper I try to attempt to spot the concept of GST & its current status in India. Paper

gives information about GST. The study also aims to be familiar with the advantages and

challenges of GST in Indian scenario.

Keyword - Goods and services Tax, Gross domestic products, Budget, Development, Tax

1. INTRODUCTION

This large quantity of taxes at the

State and Central levels has brought about a

complex indirect tax structure in the nation

that is ridden with concealed expenses for

the trade and industry. Firstly, there is no

consistency of assessment rates and structure

crosswise over States. Also, there is falling

of charges because of 'tax on tax'. No credit

of excise duty and service tax paid at the

phase of manufacture is available to the

traders while paying the State level sales tax

or VAT, and vice-versa. Further, no credit of

State taxes paid in one State can be benefited

in different States. Due this tax on tax prices

of goods and services get unnaturally

inflated. The arrangement of GST would

stamp a reasonable take off from the plan of

dissemination of monetary forces conceived

in the Constitution. The proposed dual GST

conceives tax assessment of the same

assessable occasion, i.e., supply of products

and enterprises, at the same time by both the

Centre and the States. The credit of GST

paid on input at each phase of value addition

would be available for the discharge of GST

liability on the output, thereby ensuring GST

is charged only on the component of value

addition at each stage. Indian indirect tax

will become simpler after GST. It is

expected to decrease cost of creation and

inflation in the economy, accordingly

making the Indian trade and industry more

competitive, locally and additionally

globally. It is likewise expected that

arrangement of GST will encourage a typical

or consistent Indian market and contribute

essentially to the development of the

economy.

2. LITERATURE REVIEW

Kausalya’s Arthasastra: His works state

that the taxes are often perceived to be a

measure for raising resources for the

government. In the primitive barter

economies of the medieval period in Europe

and even in ancient India, the primary

objective of taxation was to raise resource

for the economy.

Mukhopadhyay Sukumar (2005): His

study reveals that Revenue growth is the

most important aspect by which to judge the

success of VAT in Haryana. The deemed

growth of revenue estimated by the

Commercial Tax Department of Haryana,

however, has not taken into account a

number of positive factors. As Haryana

implemented VAT only in 2003, one year is

too short a period to judge its efficiency

from a revenue point of view. The

conclusion is that the design of VAT

introduced in Haryana is unexceptional




Nishitha Guptha (2014) in her study stated

that implementation of GST in the Indian

framework will lead to commercial benefits

which were untouched by the VAT system

and would essentially lead to economic

development.

Jaiprakash (2014) in his research study

mentioned that the GST at the Central and

the State level are expected to give more

relief to industry, trade, agriculture and

consumers through a more comprehensive

and wider coverage of input tax set-off and

service tax setoff, subsuming of several

taxes in the GST and phasing out of CST

Saravanan Venkadasalam (2014) has

analysed the post effect of the goods and

service tax (GST) on the national growth on

ASEAN States using Least Squares Dummy

Variable Model (LSDVM) in his research

paper. He stated that seven of the ten

ASEAN nations are already implementing

the GST. He also suggested that the

household final consumption expenditure

and general government consumption

expenditure are positively significantly

related to the gross domestic product as

required and support the economic theories.

But the effect

of the post GST differs in countries

3. OBJECTIVE OF STUDY –

To collect information of current tax system

and analysis of tax byGST

To study the concept of Goods and Services

Tax (GST) and its impact on Indian

economy.

To understand how GST will work inIndia.

To know the benefits of GST in India conte

4. RESEARCH METHODOLOGY

The study is based on Secondary data

collected from various referred books,

National & international Journals,

government reports, publications from

various websites which focused on various

aspects of Goods and Service tax.

5. CONCEPT: -

GST is an indirect tax which will

include almost all the indirect taxes of

central government and states governments

into a uniform or whole tax. As the name

suggests it will be levied on both goods and

services at all the stages of value addition. It

has dual model including central goods and

service tax (CGST) and states goods and

service tax (SGST). CGST will subsume

indirect taxes like central excise duty, central

sales tax, service tax, special additional duty

on customs; counter veiling duties whereas

indirect taxes of state governments like state

vat, purchase tax, luxury tax, octroi, tax on

lottery and gambling will be replaced by

SGST. Integrated goods and servicetax

(IGST) also called interstate goods and

service tax is also a component of GST. It is

not an additional tax but it is a system to

examine the interstate transactions of goods

and services and to further assure that the tax

should be received by the importer state as

GST is a destination based tax.

6. STRUCTURE OF GST

The proposed GST comprises:

Central GST(CGST) which will be levied by

Central Government

State GST(SGST) which will be levied by

state government

Integrated GST (IGST) which will be levied

by Central Government on inter-State supply

of goods and services. This will be CGST

plus SGST

7. Impact of Goods and Services Tax on

Indian Economy

7.1 Positive impacts on the economy:

Implementation of a single National GST

will have major beneficial impact on all

stake holders. The key highlight of such

impact is given below:

I. Eliminates cascading effect & barrier

free tax structure:

GST will eliminate cascading [tax on

tax/ compounding tax] impact on the

production and distribution cost of goods

and services. This reduced cost of goods and

service leading to accelerated GDP growth.

GST without tax barriers will leads to

economies of scale in manufacturing

industry and reduces the supply chain cost.

II. Expected to reduce the production

cost:

GST is expected to reduce the

production cost by 15% to 20% in many of

the products in view of full input tax credit




which will have favourable impact on the

prices of product.

III. Expected to increase the tax revenue:

GST will widen the tax base and

improve the tax compliance higher tax: GDP

ratio. The Tax: GDP ratio is expected to

increase by 2% as per FRBM report. This

works out to rupees 70,000 to 80000 crores

of additional annual revenue to the central

and state governments.

IV. Leads to sustainable growth in the

economy:

GST will remove the tax distortions

from the economy. This will lead to

sustainable higher growth based on

competitive strength of the country. Simple

tax system will attract more productive

investment for growth.

V. Will lead to optimization and

comparative cost advantage:

GST will eliminate the Inter State tax

by which it will leads to optimization of

physical facilities to the extent of full

capacity. If the manufacturing is done at full

capacity industry will be benefited by

comparative cost advantage.

VI. Increase in the GDP and standard of

living:

Since it is expected that with the

implementation of GST the price level will

reduced in the economy, it will result in

increase in the consumption level and

growth in GDP of the economy. According

to study by NCAER (National Council for

Applied Economics and Research) complete

implementation of GST could lift GDP

growth by 0.9-1.7%.

VII. Positive effects on export and BOP

level:

In proposed GST the exporter will

get the full tax credit, the export units will be

able to quote better price for their products

and services in comparison with present

scenario. Increased export will ultimately

have positive effect on the BOP of the

country.

7.2 NEGATIVE IMPACT OF GST:

The proposed GST may lead to following

negative impact on the stake holders:

I. Negative effect on the real estate

industry: AsperthestudyundertakenbytheCurtinUni

versityofTechnology,Perthin

2000,GSTwouldnegativelyimpacttherealestat

emarketasitwouldaddupto

8%tothecostofnewhomesandreducedemandb

yabout12%.

II. Emergence of transfer pricing issues:

As the GST considers all the transaction

fort taxation purpose, this procedure will

increase the price of the transfer from one

department to anotherforfurther process.

III. Negative effect on working capital:

As the firms are supposed to make the

payment of the tax one very transfer the

companies working capital requirement will

shoot supply proportionaltothe purchase of

inputs for the value addition.

Conclusion:

By the above discussions one can reach

following conclusion:

1. The macro economic impact of GST

is significant in terms of grow with

effects, price effects, current account

effects and the effect on the budget

balance.

2. In developing

3. open economy with growing service

sector ,a change in the tax mix fro

mincometoconsumption-

basedtaxesislikelytoprovidea fruitful

source of revenue.

4. The proposed structure will simplify

the procedure which will end up with

equal opportunity for all the markets

and in other hand will eadsr educed

tax evasion.

REFERENCES: -

1. http://en.wikipedia.org/wiki/Goods_and_

Services_Tax_(India)

2. http://economictimes.indiatimes.com/top

ic/GST

3. A Primer on Goods and Services

Tax in India, Centre for Budget

and Gover nance Accountability,

new delhi,2011

4. Beri

Yogita,(2012),―ProblemsandProspect

sofGoodsandServiceTax(GST)inIndi

a‖,Economic affairs,2011.








5. Ca Rajkumar S Adukia, A Study on

Proposed Goods and Services Tax

[Gst] Framework in India.

6. Dr. R. Vasantha gopal (2011), ―GST

in India: A Big Leap in the Indirect

Taxation System‖, International

Journal of Trade, Economics and

Finance, Vol. 2, No. 2, April2011.

7. Empowered Committee of Finance

Ministers (2009). First Discussion

Paper on Goods and

ServicesTaxinIndia,the

EmpoweredCommitteeofStateFinanc

eMinisters,NewDelhi.

8. Girish Garg, (2014), ―Basic Concepts

and Features of Good and Service

Tax inIndia‖.

9. Goods and Ser vices Tax (GST) -

A step forward (2013) available at

http://www.taxmanagementindia.co

m

http://www.taxmanagementindia.com/






BLIND SPOT AND MARKET RISK

DR. SAROJ HIREMATH

S.P.College, Pune, Maharashtra.

ABSTRACT

The premise of the study is to generate the awareness amongst the professional

bodies the significance of digging deep into any failures and the importance going deep into

analyzing any traits of the competitive blind spot that might safe guard the company's risk.

The paper also deals with strategizing the policies with respect to the competitive blind spots

and the risks associated with it.

INTRODUCTION The year 1948 witnessed a

technological renaissance. Polaroid was

founded by Edwin Land who introduced

the world to the instant camera. Hence the

instant photography became the core

business for Polaroid. In 1976 Kodak

tried to break into the market of

photography. However it failed. The only

substitute for the instant photography was

the conventional photography that

required a long time to get processed.

Thus Polaroid had a competitive edge in

the market. But the business environment

sent a signal of discomfort when the

technology of the traditional photography

got advanced to a point where the

processing time reduced to just an hour. It

was a reasonable trade-off for the

customers. The year 1980 finally became

the era of cheap disposable cameras that

was the best alternative for the traditional

and expensive cameras and the final blow

was from the digital cameras. Polaroid

suffered from a serious jerk in 1985. It

invested millions into the instant motion

picture system project, Panavision and

Polaroid lost out to video camera which

was clearly an alternative to Polaroid's

technology. An executive at Polaroid told

the press" everybody but Land knew video

was on the way". This is quite typical of

strong, charismatic, and autocratic

technologists who became leaders in the

industry. Land stepped down from his

authoritative position in the company. But

the syndrome of overlooking the growing

change in the market persisted over 15

years till the company filled its petition for

bankruptcy. The Post-Land -Leadership

just did not want to see the changes

clearly. Had the early warning of changing

technology was caught on the Polaroid

radar then the company would have had

some different destiny to cherish. Hence

the biggest dangers to any company are the

ones that cannot be predicted.

To understand these threats one

needs to have a strong anticipating

opportunity that requires high end

peripheral vision. Past may not be the

most reliable predictor of the future. But

it can surely point out the blind spots in

the respective company or the industry.

Failing to learn the lessons will lead to

slow opportunities and threat detection

which bluntly gives little-to-no strategic

value to the company's efforts to achieve

competitive advantage. This overlooking

of threats and opportunities nearing by is

called Blind spots. The result of any Blind

Spot is an inability to contribute insights

that help senior management steer the

company to attain and sustain competitive

advantage, which is the only justification

for accruing the overhead cost of a CI

function and staff. The result is a CI unit

that has limited its ability to add strategic

value. What Polaroid suffered for the 15

years since 1985 that led to the

bankruptcy, was the blind spot. Had this

blind spot was been figured out by Land

or any of his successors, then Polaroid

would have survived the market warfare.

This paper hence identifies and explores

the blind spot effects in the present




economy. The marketers never pay much

heed to the past tends. They always seek

for the strategies to get the present work.

They rarely look back. They are busier

keeping up with the current trends. They

are more into what happened rather than

why it happened. The study thus focuses

on the loopholes while making the

strategies especially with respect to the

competitive intelligence blind spots.

Objectives of the Study 1) To explore the risks with regards to

the blind spots

2) To uncover the greatest blunders

occurred down the line of corporate

history.

3) Bringing out a solution to detect the

blind spot

4) Associating marketing strategy with

blind spot detection.

Research methodology The study is based on secondary

data which are qualitative in nature. The

source of the data used has their roots in

several books and articles. The study also

considered the latest research papers put

up in several websites.

Data analysis and interpretation:

The study mainly focuses on the

secondary data and the interpretation is

categorized as the following five factors,

viz., A, B, C, D, and E.

A) Defining Blind spots "The biggest blunder we commit in

a corporate scenario is not identifying the

risks that are approaching our way and

anticipating it as opportunities".

Precisely Blind-Spots refer to the

unidentified risks that lie in the industry,

which is bound to happen and hamper the

process of the organisation. Competitive

blind spots refer to the firm's poor analysis

of its competitor or underestimation of the

competitor moves and strategies or

misjudging the motion of the competitor

and consequently paying a huge price for

weakening itself in seeking new

opportunities and horizons.

"It's been always said, Leaders seek

Opportunities at the face of the threat".

As a result of Global intensification

the markets have become more competitive

than it was ever. The survival had become

tougher, so in order to stay alive in the

market, one has to hold the competitive

advantage over the other.

And to hold an advantage over the

other competitors, each and every move,

strategy, innovations and technology of

the other competitors should be carefully

monitored. In short - The Survival Of the

Fittest has become the notion of today's

businesses.

In spite of this prevailing

importance, cases shows that not all

corporate do have a competitive analysis

on their competitors profile, and have

serious blind spots about competitors

intentions, capabilities and possible

reactions.

The main aspects and elements

while doing a competitive analysis in

examining the blind spots could be

referred from the Industry, Competitors

and Customers.

The changes that's taking place in

the industry and new trends that keep on

rocketing the market has to be analyzed.

Further the emerging technologies which

are brought in by the close competitors

and coping up with the new technologies

that makes radical changes in the industry

has to be keenly followed in order to

outlast the competitors. If not, this leads to

blind spots in competitive analysis.

Customers

In a rapidly changing day to day

environment the needs, wants and the

preferences of the customers are also

changing each day. Not simply, it was

said that the customers are the kings of the

market. So the firm has to keep itself

updated to the new emerging needs and

wants of the customers. Identifying the

potential customers and catering to their

buying patterns and behaviors had been

become more important, in avoiding the

blind spots.

Competitors




Significant blind spots occur in

this particular juncture, as the firm has to

very careful in analyzing its competitors,

not sticking to only the well known

companies and brands is vital, as there

might be potential threat from a new

entrant and in this global era, companies

shouldn't limit themselves to a regional

competitor, as there might be national,

foreign invasions sooner or later.

How important it is to take a

strategic move during economic

slowdowns, is as important in analyzing

the competitor during that particular

depression period. Competitors may try to

seek new target segment or roll down new

line extension or diversify their markets

and operations.

Firms that do not consider these

issues in competitive analysis will fall a

prey to competitive blind spots. B) Blind

spot Detection and Its Barrers to Adding

Strategic Values

The industry map reveals that the

industry landscape is changing at a rapid

pace. Every day brings in a brave new

world in the technical and business arena.

Concerned entities in the respective

world, if they do not bother to follow up

the constant change are bound to bring up

the rear. Market is now very much

dynamic and exponential. A constant

follow up with regards to the constant

change in the environmental landscape is

very crucial for the sustainability of any

concerned entity working within the

market. The solution to the matter dealt

with has to be addressed with sheer

importance. The industry map reveals

that the industry landscape is changing at

a rapid pace. Every day brings in a brave

new world in the technical and business

arena. Concerned entities in the respective

world, if they do not bother to follow up

the constant change are bound to bring up

the rear. Market is now very much

dynamic and exponential. A constant

follow up with regards to the constant

change in the environmental landscape is

very crucial for the sustainability of any

concerned entity working within the

market. The solution to the matter dealt

with has to be addressed with sheer

importance.

Having done the scanning of the

environment of the market, risks need to

be mapped and rated as per the interest of

the organization. To define with clarity,

anything that causes a hindrance to the

vision, mission and objective an

organization or a firm is called a risk.

Hence the future threat perceived, should

be rated on a desired scale as per the

concerned convenience.

C) Blind spot and Risk Detection Globalization has erased the

concept of territory in the world of trade

and commerce. Earlier days witnessed

the dictators as the influential

individual with the supreme military

power. Recent years witness the

economic superpower as the dictator of

the world. In that way, things have

changed from head to toe. But the

aggression has the same intensity and

the lust for the power is still the same.

Hence the bottom line of every

organization is money and thus the

power play has begun the day people

understood the significance of economic

superpower. The global market is

interconnected by regulations and trade.

The risk detection in the excessive

complex market stands a chance to get

extremely vulnerable. The business

environment needs a constant

monitoring as the landscape changes

very rapidly. The rapid changes in the

landscape are just the outcome of the

exponential trend of the market

dynamics. But the bottom line of risk

detection is the constant environment

scanning. No matter how much critical

or how much innovative risk detection

model is used, has not the

environmental scanning been done on a

regular basis, the detection cannot be

made. Detection and analyzing tools

will come and will evolve into finer

tools and then will also get obsolete




with the emergence of new tool and

technique. But if the scanning is not

done properly, actionable intelligence

will not get generated and hence risk

will not get detected. Hence, no matter

how complex a structure the global

economy has, which no wonder will

evolve more into a more complicated

structure, but the scanning of

environment to get a proper idea is of

utmost importance. To gauge the risk

and its significance, an organization

needs the daily updates of every form

regarding the micro and macro

environment of the economy. Micro

includes everything with regards to the

organization and macro includes

everything with regards to its

competitors, market, global changes,

technical evolution-in short, everything

to landscape the industry the

organization is playing or wants to play-

However, in order to mitigate the risk,

one will have to understand the kinds of

risks that he may have to be come in

terms with in the market while

undergoing any tradeoffs. They are thus

as follows:

1) Strategic risk

2) Compliance risk

3) Financial risk

4) Operational risk

5) Data protection risk

6) Environmental risk

7) Employee risk

8) Political risk

9) Commercial risk

10) Reputational risk

Strategic risks includes the

threats arising out of mergers and

acquisitions, changes in demand among

the customers, changes in the industry

and the changes regarding the

technology. The compliance risk

involves the legal issues that need to be

addressed. Financial risks includes the

issues regarding the daily examination of

proper cash flow in and out of the

organization that concerns the credit and

debit flow of money, insurance coverage

of large and doubtful debts and the bank

interests. Moreover the financial risks

cover the exchange rate risks and the

export risks. The exchange risks

management finds solutions to the risk in

hedging. Hedging can be done in two ways:

a) Forward foreign exchange

contracts that is mainly handled by

the respective bank of the organization.

b) Buying currency options

The operation risks includes the

risks regarding the proper talent

management, proper supply chain

management transportation management,

accounting controls, information

technology management regulations and

the board composition of the organization

themselves. At the end, goodwill makes

the organization a going concern. Thus

reputation holds such importance to a

firm that it any harm to it can bring down

a company to the stage from where it

began its journey.

Any organization should have a

department who will just be entrusted

with the job of data security and

collection. In other words, the intelligence

unit of every organization should be

entrusted with the environment scanning

and the risk detection. Every department

should have their own monitoring sub

department. But the entire sub department

should be directly supervised by the

planning department.

D)Vision in Accordance to the Risk

Detection- Strategic Inflection Points

May you, live in Interesting Times.

-Chinese Curse

Strategic Inflection Point - a new

term coined by Andy Groove, which states

it as a time in the life of business or project

when its fundamentals are changing

significantly. Often point is a misnomer,

and it's actually a long, sometimes painful

period of change.

Strategic Inflection Point could

also be the subtle- in a way hard to detect

changes that are happening in the industry

and in the environment. The wheels roll in

the form of emerging new technologies,




entry of new competitor (unrelated

diversification), changing patterns of

consumer behavior and buying patterns.

"IT'S NOT A SIN TO BE

DEFEATED, BUT TO BE SURPRISED"!

Surprise! When everything looks

and feels normal to you, suddenly some

changes takes place which involves you

seriously.

Strategic Inflection Point may bring

about full scale changes in the way the

business is being conducted.

And if necessary reactions are not

made to these changes in the environment,

then firms would end up paying dearly for

that. Thus strategic inflection point could

be deadly.

In short strategic inflection point

could be fundamental changes in the

business. It has become common and

imperative in today's world that firms

should adopt to the each and every

changes that occur in the environment be

it micro or macro. Else it's obvious that

firms would be easily sunk in a sea, which

is boiling with cut throat competition.

E) Scenario Planning As a Tool for

Mitigation

Practically, the market landscape

is supported by the globalization in itself.

The words that govern all the activities

inside the market are given by

"deterritorialisation" and

"supraterritorialisation" where each market

is interlinked and interconnected with each

other. But each market has its own rule

while in the game inside the ring. For

instance, two players playing a game of

chess and each of them have their own rule

that may contradict each other's interest

but they certainly protects their own

respective interest in order to maintain

their strengths and sustainability. The

intricacies are very crucial to play with as

it is very much likely to invite the

vulnerabilities from the competitors while

playing in the market. The market being

dynamic and restricted with unlimited

flow of products and services undergoes a

very high-end competition. Players in the

market are merciless and aggressive.

Hence it is very critical of every entity in

the market to do proper planning to

identify and assess the risks, then control

them and finally mitigate them. This is

called the risk management process. While

undertaking the process of risk

identification, business environment should

be given the maximum emphasis. It leads

to the assessment of the likelihood of the

occurrence of any event in near future

that holds the key to the scenario

planning. Scenario planning is nothing but

assessing the current picture of the

environment, analyzing the future risks

that the business of any particular nature is

vulnerable to and then identifying the

possible actions that can be taken in

response to the threats. The planning

should have a follow up with the systems

in place to deal with the predicted perils.

Eventually the constant monitoring should

be done to keep a check on the

effectiveness of the strategy planned to

mitigate the threats.

Conclusion

Though past is considered as dead

and effete, it can certainly be a better

predictor for the future. We can always

learn from the past citing, the blind-spots

in the company or in the industry. Those

who fail to learn from these examples will

face threat at every corridor of their

operations and will not be able to foresee

the ample opportunities that lie ahead of

them.Blind spots occur when firms do not

react to the changing business

environment, the emerging technologies,

buyer's buying patterns and shifts in

buyer's attitude and most abruptly not

analyzing the potential threats from the

competitors. Analyzing the competitors

and their strategic moves is not only

important to stay ahead of the competition

but also to make strategic decision making.

When companies fail to reflect to these

threats and changes that is where it leads

the firm to potential competitive blind

spots. When properly analyzed and

focused, these blind spots could always be




used to seize or gain a competitive

advantage over the other firms and it helps

in deciding the strategic moves to be

competitive!

References

1. http: / /en.wikipedia.org/wiki/Risk

management

2. http://www.exsecutus.com/haughwout

/2010/03/risk-management-is-more-

than-just-risk-rnitigation

3. http: //www. mind tools.

com/pages/article/newTMC_07.htm

http://www.exsecutus.com/haughwout/2010/03/risk-management-is-more-than-just-risk-rnitigation






IMPACT OF REMITTANCE ON ECONOMIC GROWTH AND POVERTY

ALLEVIATION IN NEPAL

NAR BAHADUR BISTA

Principal, Uniglobe College,

Pokhara University, Kathmandu,

Nepal

YEGYA BAHADUR K. C.

Research Scholor, Uniglobe

College, Pokhara University,

Kathmandu, Nepal

Abstract

This study examines the impact of remittance on economic growth and poverty

alleviation in Nepal. Gross domestic product and poverty alleviation are the dependent

variables. Remittance, broad money supply, foreign aid, industrial production, inflation,

foreign direct investment, per capita income, consumption, unemployment rate and literacy

rate are the independent variables. This study is based on secondary sources of data that are

collected from1995/96 to 2014/15, leading to a total of 20 observations. The data are

collected from Economic Survey, Monetary Policy and different reports published by NRB,

reports published by World Bank, and different issues and reports published by Ministry of

Finance. The regression models are estimated to test the significance and importance of

remittance on economic growth and poverty alleviation in Nepal.

The study shows that there is positive relationship between gross domestic product

and total remittance inflow. It indicates that increase in total remittance inflow leads to

increase in gross domestic product. Similarly, gross domestic product is positively correlated

to broad money supply. It indicates that increase in broad money supply leads to increase in

gross domestic product. Likewise, there is positive relationship between gross domestic

product and foreign aid. It indicates that higher the foreign aid, higher would be the gross

domestic product. Likewise, the gross domestic product is positively correlated to industrial

production. It indicates that higher the industrial production, higher would be the gross

domestic product. The study also shows that gross domestic product is positively correlated

to inflation. Similarly, the result shows that poverty alleviation is positively correlated to

total remittance inflow. It indicates that increase in total remittance inflow leads to increase

in poverty alleviation. Likewise, poverty alleviation is positively correlated to per capita

income. It indicates that higher the per capita income, higher would be the percentage of

poverty alleviation. The regression results show that the beta coefficients for remittance and

broad money supply are positive with gross domestic product. Similarly, the beta coefficients

for per capita income and literacy rate are positive with poverty alleviation. The study

concludes that remittance has significant impact of remittance on economic growth and

poverty alleviation in Nepal.

Keywords: Gross domestic product, poverty alleviation, remittance inflow, broad money

supply, foreign aid, industrial production, inflation.

1. Introduction

Remittance is a transfer of money by

foreign worker to his or her home country.

Remittance can also be referred as monetary

payment transferred by a customer to a

business from one place to another

(Mafruhah et al., 2012). In the worldwide

economy, remittances represent one of the

major international flows of financial

resources. Worker remittances constitute an

increasingly important mechanism for the

transfer of resources from developed to




developing countries, and remittances are the

second-largest source, behind foreign direct

investment, of external funding for

developing countries. Sometimes the flows

of remittances can exceed the flows of

foreign direct investment (Shera & Meyer,

2013).

Inflows of remittances increase the

economic growth and reduce the poverty by

stimulating the income of the recipient

country, reducing credit constraints,

accelerating investment and enhancing

human development through financing better

education and health (Jongwanich (2007);

Gupta et al.(2009). However, Chami et al.

(2005) found that remittances have negative

impacts on economic growth of recipient

country because a significant flow of

remittances reduce labor force participation

and work efforts which lowers output. Thus,

the impact of remittances on economic

growth and development of recipient country

has been controversial.

According to ArefAssaf (2015), there

is a positive effect of remittances on GDP.

On the other hand the effects of other

traditional sources of economic growth, such

as gross fixed capital formation showed that

there is a positive effect on GDP , a negative

effect of foreign direct investment on GDP,

while no significant effect of labor force on

GDP. Similarly, Faini (2002) argued that

remittances overcome capital market

imperfections and allow migrant households

to accumulate positive assets.

Glytsos (1993) examined the impact

of remittances on output using data from

1969 to 1998 for Egypt, Greece, Jordan,

Morocco, and Portugal. For Egypt, Jordan,

and Morocco the growth-generating capacity

of rising remittances characteristic is smaller

than the growth-destroying capacity of

falling remittances. Therefore, the large

fluctuations in the real value of remittances

contribute to large fluctuations of output

growth and cause instability in the

economies concerned. Kaufmann et al.

(2004) found a robust positive relationship

between growth and gross capital formation,

as well as between growth and some of the

institutional variables. The study also found

some evidence of a positive relationship

between growth and total remittances.

Similarly, Azam & Khan (2011) found that

worker remittance has significant and

positive effects on economic growth.

Javidet al. (2012) investigated the

importance of remittances inflow and its

implication for economic growth and

poverty reduction in Pakistan. By using

ARDL approach, the study analyzed the

impact of remittances inflow on economic

growth and poverty in Pakistan for the

period 1973-2010. The empirical evidence

showed that remittances effect economic

growth positively and significantly.

Furthermore, the study also found that

remittances have a strong and statistically

significant impact on poverty reduction.

Similarly, Giuliano (2008) found that

remittances boost growth in countries with

less developed financial system as it provide

an alternative way to finance investment and

reduce liquidity constraints. Workers‘

remittances also play an important role in

human capital investment in the recipient

country through relaxing resource

constraints. Rajan &Subramanian (2005)

found a robust and significant positive effect

of remittance on long-term growth.

Jongwanich (2007) examined the

impact of workers‘ remittances on growth

and poverty in Asia-Pacific developing

countries. The empirical evidence showed

that remittances have a significant impact on

poverty reduction and trivial impact on

growth. Similarly, Burgess and Vikram

(2005) examined the different channels

through which remittances can affect

economic activity. The study does not

clearly support the short term stabilizing

effect on consumption, however the longer

term economic effect of such flows seems to

be ambiguous. Catrinescu et al. (2009)

explored that remittances exert a weak

positive impact on long term

macroeconomic growth. Furthermore, the

study also supported the idea that

development impact of remittance enhances




in the presence of sound macroeconomic

policies and institution.

Fayissa and Nsiah (2010) argued that

remittances enhance economic growth in

countries where financial systems are not

very strong. Iqbal and Sattar (2005) showed

that real GDP growth is positively correlated

to workers‘ remittances during 1972-73 to

2002-03. The study also revealed that

workers‘ remittances emerged to be the third

important source of capital for economic

growth in Pakistan. Likewise, El-Sakka&

McNabb (2002) examined the role of

remittances and financial development on

economic growth in a panel of 36 countries

in Saharan Africa over the period of 1980-

2009. The study found that remittances

appear to be an important source of growth

for these countries in Africa during the

period under study. Jawaid et al. (2012)

revealed a positive and significant

relationship between workers‘ remittances

and economic growth. The study showed

that the workers‘ remittances are more

contributing in high income countries as

compared to low and middle income

countries.

According to Ramirez and Sharma

(2008), there is a positive association

between workers‘ remittances and economic

growth. Similarly, Imai et al. (2014) found a

positive relationship between workers‘

remittances and economic growth but the

volatility of workers‘ remittances was found

harmful for economic growth in 24 Asian

and Pacific countries. Tehseen & Raza

(2012) argued that workers‘ remittances also

create over dependency on external economy

or income that‘s creating voluntary

unemployment. Likewise, Waheed and

Aleem (2008) found that worker remittances

are only beneficial in short run. In long run,

the policy makers should focus on export

earning instead of workers‘ remittances as a

source of foreign exchange earnings for

continues and stable growth. Leon and

Piracha (2004) suggested that international

migration/remittances paralyze countries

making them dependent on remittances.

Reliance on remittances distorts

development and creates inequalities and

disparities among the people within the

country. Similarly, Sofranko and Idris

(1999) concluded that workers‘ remittances

fail to create sufficient savings required for

rapid economic growth because remittances

are mainly used for consumption not for

investment.

Similarly, Brown and Ahlburg

(1997) argued that remittance undermine

productivity and growth in low-income

countries because they are readily spent on

consumption likely to be dominated by

foreign goods than on productive

investments. Paul and Das (2011) found a

long run positive relationship between

remittance and GDP, but there is no

evidence on remittance-lead growth in the

short-run. On the other hand, Maitur et al.

(2006) showed that remittances seem to have

significant and ambiguous effect on

Bangladesh's GDP. Rodrick (2008) provided

evidence that a rise in remittance inflow

leads to an underestimation of long run

economic growth through the overvaluation

of real exchange rate which potentially cause

an inflationary pressure.

Adams and Page (2005) used the data

of 71 developing countries to assess the

relationship of remittances with growth,

inequality and poverty. The study concluded

that remittances significantly reduce the

level, depth and severity of poverty and

increase the economic growth of the

developing world. Lucas (2005) argued that

remittances probably contributed in a

significant way to economic growth and

poverty alleviation process in case of

Pakistan. Similarly, Nsiah & Fayissa (2010)

examined the macroeconomic impact of

remittances and some control variables such

as openness of the economy, capital/labor

ratio, and economic freedom on the

economic growth of African, Asian, and

Latin American-Caribbean countries. The

study found that remittances, openness of

the economy, and capital labor ratio have

positive and significant effect on economic

growth for all regions as a group and in

each of the three in study. Inflow of




remittances affects economic growth

positively by reducing current account

deficit, improving the balance of payment

position and reducing dependence on

external borrowing (Iqbal and Sttar, 2005).

In Nepalese context, many studies have

attempted to address the impact of

remittance on economic growth and poverty

alleviation. Pradhan et al. (2008) found that

remittance has a significant and positive

impact on growth. Similarly, Gaudel (2006)

found that remittance income and grants

appear to be the most relevant variables to

raise nominal GDP in Nepal. Pension and

other items have also significant effect on

increasing nominal GDP in Nepal. Thagunna

and Acharya (2013) showed that

consumption has significant contribution to

the Nepalese economy at the present.

According to Pant (2008), remittance

is utilized for consumption, purchasing

houses or other investments which produce

positive effect on the economy by

stimulating demand for other goods and

services. The study also showed significant

decline in receipts from remittance could

disturb the structure of the economy from

the macro level.

The above discussion reveals that

there is no consistency in the findings of

various studies concerning the impact of

remittance on economic growth and poverty

alleviation.

The major purpose of this study is to

examine the impact of remittance on

economic growth and poverty alleviation in

Nepal. Specifically, it examines the effect of

remittance inflow, broad money supply,

foreign aid, industrial production, inflation,

unemployment rate, foreign direct

investment, per capita income, consumption

and literacy rate on economic growth and

poverty alleviation in Nepal.

The remainder of this study is organized

as follows: Section two describes the

sample, data and methodology. Section three

presents the empirical results and the final

section draw conclusions and discuss the

implications of the study findings.

2. Methodological aspects The study is based on the secondary

data, which were gathered from 1995/96 to

2014/15, leading to a total of 20

observations. The main sources of data are

Economic Survey, Monetary Policy and

different reports published by NRB, reports

published by World Bank, and different

issues and reports published by Ministry of

Finance. Table 1 shows the list of variables

selected for the study along with study

period and number of the observations.

Table 1: Number of macroeconomic variables selected for the study along with the

study period and number of observations

S.N. Variables Study period Observation

1 Gross domestic product 1995/96-2014/15 20

2 Poverty alleviation 1995/96-2014/15 20

3 Total remittances 1995/96-2014/15 20

4 Broad money supply (M2) 1995/96-2014/15 20

5 Foreign aid 1995/96-2014/15 20

6 Industrial production 1995/96-2014/15 20

7 Inflation 1995/96-2014/15 20

8 Foreign direct investment 1995/96-2014/15 20

9 Per capita income 1995/96-2014/15 20

10 Consumption 1995/96-2014/15 20

11 Unemployment rate 1995/96-2014/15 20

12 Literacy rate 1995/96-2014/15 20

Total observations 20

Thus, the study is based on 20 observations.




The model

The model estimated in this study

assumes that the economic growth and

poverty alleviation depend on various macro

economic variables. The independent

variables considered in this study are



unemployment rate, foreign direct

investment, per capita income, consumption

and literacy rate. Therefore, the model takes

the following forms:

Economic growth=ƒ (remittance

inflow, broad money supply, foreign aid,

industrial production, inflation,

unemployment rate and foreign direct

investment).

Poverty alleviation=ƒ (remittance

inflow, per capita income, consumption and

literacy rate).

More specifically, the given model

has been segmented into following models:

Model I:

GDPit= β0 + β1 REMit + β2MSit + β3FAit +

β4IPit+β5INFit +β6FDIit+GDPt-1+ uit

Model II:

PA it = β0 + β1REMit + β2PCIit + β3CONit +

β4URit + β5LRit + uit

Where,

GDP= Gross domestic product is the real

GDP of the country, in Billion Rupees.

REM= Remittance is defined as earnings

from foreign employment, in Billion Rupees.

CON= Consumption is defined as resources

used by households, in Billion Rupees.

FDI= Foreign direct investment is defined as

net inflow of investment from abroad, in

Billion Rupees.

MS=Broad money supply is defined as total

money circulation in market plus demand

deposit, in Billion Rupees.

FA= Foreign aid is the goods, capital or

services received by a country from abroad,

in Billion Rupees.

IP= Industrial production is the total

industrial production of the country, in

Billion Rupees.

INF= Inflation is the continuous increase in

general price of goods and services in the

economy, in percentage.

PCI= Per capita income is the national

income divided by the total population of the

country in a given year.

PA= Poverty alleviation is the population

not living below poverty line, in percentage.

UR=Unemployment rate is the percentage of

unemployed population in the country, in

percentage.

LR= Literacy rate is the percentage of

literate population in the country, in

percentage.

Remittance

A remittance is a transfer of money

by a foreign worker to his or her home

country or simply sending amount from one

country to another. Ivakhnyuk (2006) found

that workers‘ remittances which are closely

related to migration have a positive impact

on economic development. Similarly, the

study also revealed that increase in

remittance leads to alleviation of poverty. In

addition, Pradhan et al. (2008) found that

remittances have a positive impact on

economic growth in a sample of 39

developing countries. Based on it, the study

develops the following hypotheses.

H1: There is a positive relationship between

remittance and gross domestic product.


remittance and poverty alleviation.

Money supply

Money supply is the total amount

of monetary assets available in

an economy at a specific time. An increase

in the supply of money typically lowers

interest rates, which in turns generates more

investment and puts more money in the

hands of consumers (Nwannebuike, 2015).

Kar and Pentcost (2000) suggested that the

money supply was taken as a leading

indicator for the economic growth. Islamet

al. (2004) revealed a positive relationship

between money supply and economic

growth. Based on it, this study develops the

following hypothesis:





money supply and gross domestic product.

Foreign aid

Foreign aid refers to the assistance

provided by one nation to another. Foreign

aid also refers to the transfer of goods,

capital or services from an international

organization or a country to offer some

benefits or help to the receipt country.

Gomanee et al. (2005) found that foreign aid

has a significant positive effect on economic

growth. Similarly, Dowling and Hiemenz

(1982) assessed the effect of aid on

economic growth in Asia. The study found

that aid has positive and significant effect on

economic growth. Similarly Karras (2006)

found the positive correlation between

foreign aid and growth in per capita GDP.

This study concluded that the effect of

foreign aid on economic growth is positive,

permanent and statistically significant.

Based on it, the study develops the following

hypothesis.


foreign aid and gross domestic product.

Industrial production

Industrial production is a measure of

output of the industrial sector of the

economy. The industrial sector includes

manufacturing, mining, and utilities.

Aurangzeb and Ul-Haq (2012) found that

industrial production contributes to

economic growth significantly and there is

positive relationship of gross domestic

product with industrial production.

Similarly, Kibriya et al. (2014) found that

industrial production is an important source

of increasing economic growth. Based on it,

the study develops the following hypothesis.


industrial production and gross domestic

product.

Inflation

Inflation reflects the continuous

increase in general price of good and service

in the economy. Fischer (1993) showed that

inflation and growth are negatively related.

More specifically, the study argued that the

growth, investments and productivity are

negatively related to inflation. Marbuah

(2010) investigated the relationship between

inflation and economic growth. The study

found evidence of significant negative effect

of inflation on economic growth with and

without structural break. Based on it, this

study develops the following hypothesis:

H6: There is a negative relationship between

inflation and gross domestic product.

Foreign direct investment

Foreign direct investment (FDI) is

any form of investment that earns an interest

in enterprise which functions outside of

domestic territory of investor. Borensztein et

al. (1998) suggested that FDI is an important

vehicle for the transfer of technology,

contributing relatively more to growth than

domestic investment. Another recent study

also confirmed that the important role of FDI

is to stimulate economic growth in the Euro

zone countries (Pegkas, 2015). Based on it,

this study develops the following hypothesis:


foreign direct investment and gross domestic

product.

Per capita income

Per capita income is a measure of the

amount of money that is being earned per

person in a certain area. It can be calculated

for a country by dividing the country's

national income by its population. Spatafora

(2005) found that there is a positive and

significant relationship between per capita

income and poverty alleviation. Ravallion

and Chen (2008) found that there exists very

strong positive relationship of per capita

income growth with poverty reduction.


hypothesis:


per capita income and poverty alleviation.

Consumption Consumption refers to the action of

using up a resource. In economics, the

consumption function is a single

mathematical function used to express

consumer spending. Durand (1996) argued

that remittances influence a country‘s

economy directly by way of investment or

indirectly through the multiplier effect of

consumption which elicits investments in




production to meet the demand upsurge.

Anyanwu (2011) found that remittances that

raise the consumption levels of rural

households might have substantial multiplier

effects because they are more likely to be

spent on domestically produced goods.


hypothesis:


consumption and poverty alleviation.

Unemployment rate The unemployment rate is the share

of the labor force that is jobless, expressed

as a percentage. Huang and Yeh (2013)

supported the inverse relationship of

economic growth and poverty alleviation

with unemployment. Similarly, Grogan et al.

(2013) found that there is negative

relationship between the people unemployed

in the country and poverty alleviation. Based

on it, the study develops the following

hypothesis:

H10: There is a negative relationship

between unemployment rate and poverty

alleviation. Literacy rate

Literacy represents the lifelong,

intellectual process of gaining meaning from

a critical interpretation of written or printed

text. Moore (2005) showed that low

education is a key factor in keeping people

poor over decades or lifecycles. Janjua and

Kamal (2011) revealed that increase in

literacy rate has a higher effect on the

economic growth due to which the country

may eradicate the poverty for the uplifting

the living standard of the country population.


hypothesis.


literacy rate and poverty alleviation.

3. Results and discussion

Descriptive statistics

Table 2 presents the descriptive

statistics of selected dependent and

independent variables during the period of

1995/96 to 2014/15.

Table 2: Descriptive statistics Table 2 presents the descriptive statistics of

dependent and independent variables. The result is

based on descriptive statistics of variables used in

this study during the period from 1995/96 to 2014/15.

GDP (gross domestic product is the real GDP of the

country, in Billion Rupees) and PA (poverty

alleviation is the population not living below poverty

line, in percentage) are the dependent variables. The

independent variables are REM (remittance is defined

as earnings from foreign employment, in Billion

Rupees), CON (consumption is defined as resources used by households, in Billion Rupees), FDI (foreign

direct investment is defined as net inflow of

investment from abroad, in Billion Rupees), MS

(broad money supply is defined as total money

circulation in market plus demand deposit, in Billion

Rupees), FA (foreign aid is the goods, capital or

services received by a country from abroad, in Billion

Rupees), IP (industrial production is the total

industrial production of the country, PCI (per capita

income is the national income divided by the total

population of the country in a given year), UR

(unemployment rate is the percentage of unemployed population in the country, in percentage) and LR

(literacy rate is the percentage of literate population

in the country, in percentage)

Table 2: Descriptive statistics

Variables Minimum Maximum Mean S.D.

Gross domestic product (in Billion Rupees) 256.00 2249 938.15 660.17

Poverty alleviation (%) 59.60 78.40 69.45 5.05

Total remittance inflow (in Billion Rupees) 25.19 665.00 201.55 209.67

Broad money supply (in Billion Rupees) 92.65 2018.93 588.95 567.32

Foreign aid (in Billion Rupees) 5.71 59.21 29.63 18.27

Industrial production (in Billion Rupees) 54.99 265.75 130.97 70.89

Inflation (%) 2.50 12.60 7.24 3.01

Foreign direct investment (in Billion Rupees) -0.48 9.19 2.15 2.95

Per capita income (in Rupees) 12139.00 80900 33587.40 21503.56

Consumption (in Billion Rupees) 195.58 1843.72 692.31 496.93

Unemployment rate (%) 1.80 4.50 2.82 0.69

Literacy rate (%) 39.76 63.90 50.79 8.35




Correlation analysis

Having indicated the descriptive

statistics, Pearson‘s correlation coefficients

are computed and the results are presented in

Table 3. More specifically, it shows the

correlation coefficients of dependent and

independent variables.

Table 3: Pearson’s correlation coefficient

matrix Table 3presents the bivariate Pearson‟s correlation coefficients between different variables used in the study. The correlation coefficients are

based on the study during the period from 1995/96 to 2014/15. GDP (gross domestic product is the real

GDP of the country, in Billion Rupees) and PA

(poverty alleviation is the population not living below

poverty line, in percentage) are the dependent

variables. The independent variables are REM

(remittance is defined as earnings from foreign

employment, in Billion Rupees), CON (consumption is

defined as resources used by households, in Billion

Rupees), FDI (foreign direct investment is defined as

net inflow of investment from abroad, in Billion

Rupees), MS (broad money supply is defined as total

money circulation in market plus demand deposit, in Billion Rupees), FA (foreign aid is the goods, capital

or services received by a country from abroad, in

Billion Rupees), IP (industrial production is the total

industrial production of the country, in Billion

Rupees), INF (inflation is the continuous increase in

general price of goods and services in the economy,

in percentage), PCI (per capita income is the national

income divided by the total population of the country

in a given year), UR (unemployment rate is the

percentage of unemployed population in the country,

in percentage) and LR (literacy rate is the percentage of literate population in the country, in percentage)

Notes: The asterisk signs (**) and (*) indicate that

the results are significant at 1 percent and 5 percent

level respectively. Table 3 shows that gross domestic

product is positively correlated to total

remittance inflow. It indicates that increase

in total remittance inflow leads to increase in

gross domestic product. Similarly, gross

domestic product is positively correlated to

broad money supply. It indicates that

increase in broad money supply leads to

increase in gross domestic product.

Likewise, gross domestic product is

positively correlated to foreign aid. It

indicates that higher the foreign aid, higher

would be the gross domestic product.

Likewise, the gross domestic product is

positively correlated to industrial production.

It indicates that higher the industrial

production, higher would be the gross

domestic product. The study also shows that

gross domestic product is positively

correlated to inflation. It indicates that

higher the inflation, higher would be the

gross domestic product.

Similarly, the result shows that

poverty alleviation is positively correlated to

total remittance inflow. It indicates that

increase in total remittance inflow leads to

increase in poverty alleviation. The poverty

alleviation is positively correlated to foreign

direct investment. It indicates that higher the

foreign direct investment, higher would be

the percentage of poverty alleviation.

Likewise, poverty alleviation is positively

Variables GDP PA REM MS FA IP INF FDI PCI CON UR LR

G

D

Pt

-1

GDP 1

PA 0.696**

1

REM 0.685**

0.738**

1

MS 0.678**

0.754**

0.590**

1

FA 0.529**

0.554* 0.831

** 0.796

** 1

IP 0.693

** 0.682

** 0.682

** 0.564

** 0.823

** 1

INF 0.528

* 0.326 0.514

* 0.477

* 0.673

** 0.511

* 1

FDI 0.757

** 0.568

** 0.765

** 0.709

** 0.773

** 0.791

** 0.443 1

PCI 0.795

** 0.685

** 0.693

** 0.591

** 0.817

** 0.689

** 0.495

* 0.758

** 1

CON 0.792

** 0.588

** 0.791

** 0.594

** 0.803

** 0.782

** 0.485

* 0.730

** 0.693

** 1

UR -0.044 -0.292 0.022 0.016 0.199 -0.054 -0.045 0.167 -0.020 -0.027 1

LR 0.787

** 0.753

** 0.853

** 0.847

** 0.821

** 0.874

** 0.594

** 0.675

** 0.873

** 0.866

** -0.033 1

GDPt-1 0.794

** 0.892

** 0.789

** 0.587

** 0.825

** 0.588

** 0.506

* 0.747

** 0.692

** 0.691

** -0.033 0.869

** 1




correlated to per capita income. It indicates

that higher the per capita income, higher

would be the percentage of poverty

alleviation.

Regression analysis

Having indicated the Pearson‘s

correlation coefficients, the regression

analysis has been performed and the results

are presented in Table 4. More specifically,

the table shows the regression results of



and foreign direct investment on gross

domestic product.

Table 4: Regression analysis of remittance

inflow, broad money supply, foreign aid,

industrial production, inflation and

foreign direct investment on gross

domestic product (The table shows regression results of

variables from 1995/96 to 2014/15. The model is

GDPit= β0 + β1 REMit + β2MSit + β3FAit +

β4IPit+β5INFit +β6FDIit +GDPt-1+ eit. GDP (gross

domestic product is the real GDP of the country, in

Billion Rupees) is the dependent variable. The independent variables are REM (remittance is defined

as earnings from foreign employment, in Billion

Rupees), FDI (foreign direct investment is defined as

net inflow of investment from abroad, in Billion

Rupees), MS (broad money supply is defined as total

money circulation in market plus demand deposit, in

Billion Rupees), FA (foreign aid is the goods, capital

or services received by a country from abroad, in

Billion Rupees), IP (industrial production is the total

industrial production of the country, in Billion

Rupees), INF (inflation is the continuous increase in

general price of goods and services in the economy, in percentage)

Model Intercepts

Regression coefficients of Adj-

R2 SEE

F-

value REM MS FA IP INF FDI GDPt-1

1 12.78

(8.64)**

0.76

(24.59)**

0.74 115.31 60.73

2 67.84

(5.80)**

0.75

(19.92)**

0.65 141.27 39.89

3 5.92

(0.31)

0.35

(6.28)**

0.60 379.67 39.44

4 72.86

(7.09)**

0.71

(35.57)**

0.79 80.34 55.01

5 98.73

(0.29)

0.48

(12.64)

*

0.24 576.06 6.95

6 73.61

(4.64)**

0.56

(14.92)*

*

0.55 443.12 24.17

7 21.22

(5.07)**

0.42

(56.15)**

0.69 51.10 31.14

8 30.31

(7.52)**

2.75

(2.96)**

4.33

(4.39) **

0.71 118.14 28.13

9 51.14

(5.86)**

21.86

(2.99)**

64.76

(5.43)

**

0.69 369.16 21.88

10 34.30

(4.94) **

52.54

(1.43)

145.82

(3.89)**

0.57 430.72 13.82

11 39.33

(4.99) **

3.01

(5.99) **

6.52

(6.49)

**

0.86

(3.75)**

0.74 40.94 70.90

Notes: i. Figures in parentheses are t- values.

ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and 5 percent level respectively. iii. Dependent variable is gross domestic product.

Table 4 shows that the beta coefficients for remittance inflow are positive and

significant with gross domestic product. It indicates that increase in total remittance inflow

leads to increase in gross domestic product. This finding is consistent with the findings of

Ivakhnyuk (2006). Similarly, the beta coefficients for broad money supply are positive and

significant with gross domestic product. It indicates that increase in broad money supply

leads to increase in gross domestic product. This finding is similar to the findings of Islamet




al. (2004). Likewise, the beta coefficients for industrial production are positive and

significant with gross domestic product. It indicates that higher the industrial production,

higher would be the gross domestic product. This finding is similar to the findings of Kibriya

et al. (2014).

Table 5 shows the regression results of remittance inflow, per capita income,

consumption, unemployment rate and literacy rate on poverty alleviation.

Table 4.7: Regression analysis of total remittance inflow, per capita income,

consumption, unemployment rate and literacy rate on poverty alleviation ((The table shows regression results of variables based on time series data from period of 1995/96 to

2014/15. The regression result consists of specification of the model in the form of simple and multiple

regressions. The model is PA/PR it = β0 + β1REMit + β2PCIit + β3CONit + β4URit + β5LRit + uit. Dependent

variable is poverty alleviation and independent variables are REM (remittance defined as earnings from abroad

employment, in Billion Rupees), PCI (per capita income defined as income of individuals within the country,in

Rupees),CON (consumption defined as action of using of the resources by households, in Billion Rupees), UR (unemployment rate defined as individual not getting job, in percentage) and LR ( literacy rate defined as

educated population of the country, in percentage).

Notes: i. Figures in parentheses are t-values.

ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and 5 percent level respectively. iii. Dependent variable is poverty alleviation.

Table 5 shows that the beta

coefficients for remittance inflow are

positive and significant with poverty

alleviation. It indicates that increase in

total remittance inflow leads to increase in

poverty alleviation. This finding is

consistent with the findings of Pradhan et

al. (2008). Similarly, the beta coefficients

for per capita income are positive and

significant with poverty alleviation. It

indicates that higher the per capita income,

higher would be the percentage of poverty

alleviation. This finding is similar to the

findings ofRavallion and Chen (2008).

However, the beta coefficients for

unemployment rate are negative and

significant with poverty alleviation. It

indicates that decrease in industrial

production leads to increase in the

percentage of poverty alleviation. This

finding is similar to the findings of Grogan

et al. (2013)

4. Summary and conclusion

Remittance is the flow of money

from migrants abroad to their families in

their country of origin. The flows of

remittance has increased significantly

during recent decades and is expected to

Models Intercepts Regression coefficients of

Adj-R2 SEE F- value

REM PCI CON UR LR

1 65.38

(73.45)**

0.25

(16.51)**

0.69 2.83 42.33

2 62.47

(61.22)**

0.18

(8.07)**

0.57 2.42 31.04

3 63.2

(67.88)**

0.11

(8.19)**

0.58 2.39 37.07

4 75.49

(15.76)**

-0.16

(-1.03)

0.08 4.96 1.68

5 46.3

(9.59)**

0.16

(4.86)** 0.54 3.41 23.59

6 54.82

(23.71)**

0.01

(1.67)

0.01

(0.99)

0.71 1.65 54.11

7 70.63

(13.91)**

0.01

(5.08)**

-1.97

(-2.89)*

0.84 2.05 33.21

8 69.48

(10.80)**

0.019

(3.59)**

-2.25

(-2.73)*

0.05

(0.39) 0.76 2.46 21.35

9 63.85

(17.12)**

0.01

(2.39)*

0.02

(0.49)

-1.17

(-2.36)*

0.93 1.38 48.16




continue increasing into the foreseeable

future as more people migrates in response

to globalization and increasing wage

differences. Remittance means the transfer

of funds from international migrants to

their family members in their home

country. It is different from other external

capital inflow like foreign direct

investment, foreign loans and aids. Foreign

remittance is the source of poverty

reduction, better health care and education.

Remittance is the main source of

increasing investment and consumption in

recipient countries. The increase in

investment and consumption is the sign of

economic development.

This study attempts to examine the impact

of remittance on economic growth and

poverty alleviation in Nepal. The study is

based on secondary data of 20

observations for the period of 1995/96 to

2014/15.

The study shows that remittance inflow,

broad money supply, foreign aid, industrial

production, inflation, and foreign direct

investment have positive and significant

impact on gross domestic product.

Similarly, remittance inflow, per capita

income, consumption and literacy rate

have positive impact on poverty

alleviation. However, unemployment rate

has negative impact on liquid poverty

alleviation. The study concludes that total

remittance helps in the economic growth

of Nepal. The study also concludes that

remittance followed by money supply and

industrial production is the most

influencing variable for the economic

growth of Nepal.

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IMPACT OF CORPORATE GOVERNANCE ON DIVIDEND POLICY OF

NEPALESE ENTERPRISE

RADHE S. PRADHAN

Uniglobe College, Pokhara

University, Nepal

NITESH RAJ BARTAULA


University, Nepal

OM SHRESTHA


University, Nepal

POOJA GNAWALI


University, Nepal

POSHAN LAMICHHANE


University, Nepal

PRATIKSHA PARAJULI


University, Nepal

Abstract

This study examines the relationship between corporate governance and dividend

policy of Nepalese enterprises. The dividend payout and dividend yield are the selected

dependent variables. Firm size, liquidity, CEO duality, return on assets, foreign ownership,

gender diversity on board, managerial ownership, institutional ownership and leverage are

the independent variables. The study is based on 126 observations of 14 Nepalese

commercial banks and 7 insurance companies for the period of 6 years from 2010/2011 to

2015/2016. The data are collected from the annual reports of selected Nepalese commercial

banks and insurance companies. The multiple regression models are performed to test the

significance and impact of corporate governance on the dividend policy of Nepalese

enterprises.The study reveals that firm size and foreign ownership are positively related to

company‟s dividend policy (DPR and DY).This indicates that higher the firm size and higher

the foreign ownership, greater would be the company‟s dividend policy (DPR and DY).The

regression results show that institutional ownership has negative impact on the dividend

payout ratio and dividend yield. It means that decrease in institutional ownership leads to

increase in dividend payout ratio and dividend yield.

Keywords: Dividend payout, dividend yield, firm size, liquidity, returns on assets, foreign

ownership, and managerial ownership.

1. Introduction

Corporate governance (CG) is the

process which facilitates the creation of

shareholder‘s value, protection of the

individual and collective interests of all

stakeholders. The concept of corporate

governance is defined as dealing with the

ways in which suppliers of finance to

corporations governance has a positive

impact on organizational performance

(Claessen, 2009).

Corporate governance has become a

contemporary issue because of its enormous

contribution to the economic growth and

development of nations (Tornyeva and

Wereko, 2012). Effective governance is

critical to all economic relations especially

in emerging and transition economies

(Dharwardkar, 2000).

The good corporate governance helps

in enhancing firm‘s performance. This is

evident by the increasing attention being

given to matters of corporate governance by

governments, regulatory bodies, regional

bodies, and private institutions (Tornyeva

and Wereko, 2012). Corporate governance

refers to the way an organization is directed,

administrated or controlled. It includes the

set of rules and regulations that affect the

manager‘s decision and contribute to the

way company is perceived by the current

and potential stakeholders.

The corporate governance structure

specifies the distribution of rights and

responsibilities among different participants

in the corporation such as; boards, managers,

shareholders and other stakeholders and

spells out the rules and procedures and also




decision making assistance on corporate

affairs (Thuraisingam, 2013).

Corporate governance refers to set of

rules and incentives by which the

management of a company is directed and

controlled (Velnampy, 2013). While the

objective of the corporation‘s shareholder is

a return on their investment, managers are

likely to have other goals, such as power and

prestige of running a large and powerful

organizations, or entertainment perquisites

of their position. In this situation, managers

superior access to inside information and the

relatively powerless position of the

numerous and dispersed shareholders, mean

that managers are likely to have upper hand

(Jensen, 1983).

Corporate governance is seen as an

essential mechanism helping the company to

attain its corporate objectives and

monitoring performance in achieving these

objectives (Mallin, 2013).

Corporate governance refers to a set

of rules and incentives by which the

management of a company is directed and

controlled. Good corporate governance

maximizes the profitability and long term

value of the firm for the shareholders

(Heenetigala, 2011 ). The concept of

corporate governance presumes a

fundamental tension between shareholders

and corporate managers (Meckling, 1976).

Dividend payment is a major component of

stock return to shareholders. Dividend

payment could provide a signal to the

investors that the company is complying

with good corporate governance practices

(Jo and Pan, 2009).

Lee (2009) found that there is a

positive relationship between the bank‘s

profitability, bank‘s size, and the dividend

payout. Likewise, the profitability, leverage,

changes in dividends and collateral capacity

had a positive significant impact on the

dividend policies of banks in Ghana

(Yiadom and Agyei, 2011).

Similarly, Ekanayake and Parantham

(2010) stated that there is a positive impact

of CEO duality on firm‘s dividend policy

and there is a negative impact of ownership

structure on firm‘s dividend policy. It is

found that firm size and profitability explain

firm dividend policy. Firm size has a

negative relationship with the dividend

payout ratio and dividend yield. It indicates

larger the firm, the more likely it is to retain

cash to pay off its liabilities (Bushra and

Mishra, 2015).

Likewise, there is a negative

relationship between managerial ownership

and dividend payout (Rozeff, 1982; Jensen

et al., 1992 and Eckbo & Verma, 1994). It

means that firms with higher managerial

ownership tend to increase internal funds at

the expense of low dividend payouts in order

to finance investments. The managers are

reluctant to pay dividend (Jensen, 1986).

However, both managerial ownership and

dividends resolve agency problems (Chen

and Steiner, 1999, Kim et al., 2007).

Similarly, Jensen et al. (1992) found a

negative relationship between leverage and

dividends.

A firm acquiring debt will have fixed

financial charges, interests and repayment of

principals and thus leads the firm into

liquidation. As a consequence, the firm has

tendency to pay lower dividends to maintain

good liquidity position and cash flow. There

is a significant positive relationship between

total foreign ownership and dividend policy

and significant negative relationships

between managerial ownership and dividend

policy (Aydin and Cadvar, 2015).

According to Kulathunga (2017),

there is a significant relationship between

corporate governance variables and dividend

policy. Board independence, CEO duality

and return on assets have significant positive

impact on dividend policy and size of the

board has negative impact on dividend

policy. The foreign investors with strong

monitoring incentives lead firms to pay more

dividends (Gong, 2015).

The relationships between

independent nonexecutive directors, board

size, CEO, proportion of family member on

board and concentrated ownerships and

dividend payout (Shehu, 2015). Board size,

board composition, CEO tenure and




management equity holding have a weak

negative relationship with dividend payout

(Ikunda et al.,2016).

Further, the study found that board

composition and managerial equity holding

were found to have no statistical significant

impact on the dividend payout. Board size,

board independence, CEO duality, return on

assets (ROA) and debt-to total assets

variables align with the corporate

governance and dividend policy (Ajanthan,

2013). The results of the study suggested

that only CEO duality is negatively related

to dividend payout whereas board size,

board independence, return on assets and

debt-to-total assets do not appear to be

significantly related to the dividend payout.

In Nepalese context, Pradhan (2003)

examined that major motive for paying cash

dividends is to convey information to

shareholder about favorable prospects of the

enterprise.

Pradhan and Balampaki (2004) found

that the size has a negative impact on

dividend yield. Dhungel(2011) revealed that

it is unclear about the relationship between

market price per share and dividend per

share in the context of Nepal.

According to Adhikari (2013), size

and liquidity are major determinants of

corporate dividend payout in Nepal. This

study also reveals that there is sector specific

importance of the determinants of corporate

dividend payout in Nepal.

Manandhar (1998)

revealed that dividend per share and returns

on equity have a positive impact on market

capitalization while earning per share, price

earnings ratio, and dividend yield have a

negative impact.

The study found that there is a

positive relationship between dividend and

stock price. Dividend per share is motivating

factor in Nepalese financial sector. It is

strong enough to increase MPS of the

banking and non-financial firms (Joshi,

2011).

The above discussion reveals that

there is no consistency in the findings of

various studies concerning the impact of

corporate governance on dividend policy.

The major objective of the study is to

assess the relationship between corporate

governance and dividend policy in Nepalese

enterprises. More specifically, it examines

the impact of firm size, liquidity, CEO

duality, return on assets, foreign ownership,

gender diversity on board, managerial

ownership and leverage on dividend policy

of Nepalese enterprises.

The remainder of this study is

organized as follows: Section two describes

the sample, data and methodology. Section

three presents the empirical results and the

final section draw conclusions and discuss

the implications of the study findings.

2. Methodological aspects

The study is based on the secondary

data which were collected from 14

commercial banks and 7 insurance

companies in Nepal. The main sources of

data are annual reports of the selected

Nepalese commercial banks and insurance

companies. Table 1 shows the list of banks

and non-banks selected for the study along

with the study period and number of

observations.

Table 1: Number of commercial banks and insurance companies selected for the study

along with study period and number of observations

S.N Name of enterprises Study period Observations

1 Nabil Bank Limited 2010/11-2015/16 6

2 Nepal SBI Bank Limited 2010/11-2015/16 6

3 Nepal Bangladesh Bank Limited 2010/11-2015/16 6

4 Everest Bank Limited 2010/11-2015/16 6

5 Himalayan Bank Limited 2010/11-2015/16 6

6 Kumari Bank Limited 2010/11-2015/16 6

7 Machhapuchchhre Bank Limited 2010/11-2015/16 6




8 Laxmi Bank Limited 2010/11-2015/16 6

9 Nepal Investment Bank Limited 2010/11-2015/16 6

10 Standard Chartered Bank Limited 2010/11-2015/16 6

11 Citizens International Bank Limited 2010/11-2015/16 6

12 Siddhartha Bank Limited 2010/11-2015/16 6

13 Global IME Bank Limited 2010/11-2015/16 6

14 Nepal Bank Limited 2010/11-2015/16 6

15 Sagarmatha Insurance 2010/11-2015/16 6

16 Shikhar Insurance 2010/11-2015/16 6

17 LIC Insurance 2010/11-2015/16 6

18 Premier Insurance 2010/11-2015/16 6

19 Himalayan General Ltd. 2010/11-2015/16 6

20 Asian Insurance 2010/11-2015/16 6

21 Gurans Life Insurance 2010/11-2015/16 6

Total observations 126

Thus, this study is based on 126 observations.

The model

The model estimated in this study

assumes that the dividend policy depends on

bank and insurance specific and macro

variables. Therefore, the study has used the

following model:

Dividend policy=ƒ (firm size,

liquidity, CEO duality, return on assets,

foreign ownership, gender diversity on

board, managerial ownership, institutional

ownership and leverage)

More specifically, the given model

has been segmented into following models:

Model I

DPR = β0 + β1MO + β2LIQ +

β3CEOD + β4FORTOT + β5FS + β6BGD +

β7IO+ β8LEV+β9ROA+ e

Model II

DY = β0 + β1MO + β2LIQ +

β3CEOD + β4FORTOT + β5FS + β6BGD +

β7IO+ β8LEV+β9ROA+ e

Where,

DPR = Dividend payout ratio is

defined as dividend per share to earnings per

share.

DY = Dividend yield is defined as

dividend per share divided by market per

share.

GD = Gender diversity refers to the

number of women directors in a board.

FS = Firm size of the banks refers to the

total assets of firms.

IO =Institutional ownership represent shares

held by institutional investors such as banks

and insurance companies.

FORTOT = Total foreign ownership is

defined as the ownership of foreign investor

in Nepalese enterprise.

LEV = Total debt to total shareholders‘

equity.

CEOD = 1 if CEO is chairman as well and 0

if otherwise.

MO =Managerial ownership is defined as

the total percentage of equity held by inside

shareholders that take part in the company‘s

management.

LIQ=Liquidity is defined as the degree to

which an asset or security can be bought or

sold in the market without affecting the asset

price.

ROA = Return on assets is defined as net

profit after tax to total assets.

Firm size

A total asset has been used as a

measure of firm size. Lintner (1956)

revealed that firm size has negative impact

on company‘s dividend policy. Similarly,

there is negative relationship between firm

size and dividend payout ratio (Twaijry,

2007). Likewise, Asghar et al. (2011) stated

that firm size negatively influences on the




dividend policy. However, Nasir et al.,

(2010) found that firm size is positively

related to dividend payout ratio. Based on it,

this study develops the following

hypothesis:

H1: There is negative relationship between

firm size and company‟s dividend policy.

Liquidity

Liquidity refers to the ease with

which an investment asset (stock, bond, and

mutual funds) can be converted into cash in

a short period of time without a significance

decrease in its value (Eljelly, 2004). Jensen

and Meckling (1976) found that higher

liquidity leads to higher dividend payment.

Likewise, Ho (2003) found that liquidity is

positively related to dividend policy.

Similarly, Alli and Ramirez (1993) found

that dividend payment depend upon cash

flow and current earnings do not really

reflect a firm‘s ability to pay dividend.

Based on it, this study develops the


H2: There is a positive relation between

liquidity level and company‟s dividend

policy.

Foreign ownership

Foreign ownership in bank is the

state of being portion owned by a person or

company from another country. Foreign

ownership (FO) has a significant positive

association with the dividend payout ratio.

Hence, the higher is the foreign ownership

in the firm the higher will be dividend

payment. La Porta et al. (2000) found that

foreign ownership has a positive impact on

dividend payment. The study reveals the

importance of foreign shareholding on

dividend policy that a company adopts.

However, Lam et al. (2012) found that

foreign ownership has significantly negative

effect on cash dividends. Baba (2009)

showed that if a firm has paid dividends, it

will have a higher proportion of foreign

ownership. It means that if a firm increases

(decreases) dividend payment, foreign

ownership will increase (decrease). Based

on it, this study develops the following

hypothesis:


foreign ownership and company‟s dividend

policy.

Gender diversity on board

Women in the BOD mean different

perspectives and point of views on issues

hence the potential to increase the value for

shareholders according to the work of

(Campbell and Vera, 2007). Both Terjesen

et al. (2015) and Luckerath-Rovers (2013)

found positive relationship between the

number of women on the board and the

performance. Likewise, Adams (2008)

argued that presence of diversity in gender

may also increase the efficiency of banks.

Female directors on the board are more

likely to prevent management‘s

opportunistic behaviors by supporting more

dividend payouts. Bilimoria (2000) revealed

that women directors are valued as board

members for their productive discourse.




gender diversity on board and company‟s

dividend policy.

CEO duality

According to Asamoah (2005), CEO

duality means the situation when the CEO

also holds the position of the chairman of

the board. The board of directors is

appointing to monitor managers such as the

CEO on the behalf of the shareholders. Abor

and Fiador (2013) found a negative

relationship between CEO duality and

dividend payout. This could be explained

that when CEO doubles as board chair, it

affords the CEO a greater opportunity to

influence the decisions made by the board.




CEO duality and company‟s dividend policy.

Institutional ownership

The institutional ownership refers

shares held by institutional investors such as

banks and insurance companies. Eckbo and

Verma (1994) found that institutional

investors prefer free cash flow to be

distributed in form of dividends. However,




institutional owners are expected to have a

negative effect on both dependent variables

mainly because such firms tend to pay

dividends in order to reduce the cost of

agency conflict (Jensen, 1986 and Rozeff,

1982). Similarly, Renneboog and Szilagyi

(2008) found that highly concentrated

institutional ownership has a negative effect

on dividend payouts. Similarly, According

to Shleifer and Vishny (1986), institutional

ownership creates the incentives to monitor

management, thereby overcomes the free-

rider problem. Similarly, Wiberg (2008)

found the positive relationship between

institutional ownership and dividend policy.




institutional ownership and company‟s

dividend policy.

Managerial ownership

Managerial ownership refers to the

total percentage of equity held by inside

shareholders that take part in the company‘s

management. Jensen (1986) found the

positive relationship between managerial

ownership and dividend policy. However,

Chen et al. (2005) found a negative

relationship between managerial ownership

and dividend policy. Similarly, Jensen et al.

(1992) show that insider ownership is

associated with lowers dividend payout.

Likewise, there is negative relationship

between insider ownership and dividend

payout (Rozeff, 1982; Perry and Rimbey,

1995 and Zhang and Keasey, 2002).

However, Abdullah et al. (2012) found

concentrated ownership has a significant

positive influence on dividend policy. Based

on it, this study develops the following

hypothesis:


managerial ownership and company‟s

dividend policy.

Return on assets

According to Asamoah (2005),

return on assets (ROA) means an indicator

of how profitable an organization is relative

to its total assets. ROA provides information

regarding how efficient management is at

using its assets to generate earnings. Belanes

et al. (2007) found that return on assets is

positively related to dividend yield.


managerial ownership and company‟s

dividend policy.

Leverage

Leverage represents a firm‘s

leverage, measured by short-term and long-

term debt divided by total assets. It is

assumed that leverage, that is, total debt to

total assets play a significant role in

determining the firm performance. Bhaduri

(2002) found that leverage is positively

related to dividend policy. However, Al-

Malkawi (2007), Patra et al. (2012) and Al-

Najjar (2009) found that leverage is

negatively related to dividend payments

because firms with more debt prefer to

retain more in order to repay loan instead of

paying more dividends. Similarly, Jensen et

al. (1992) found negative relationship

between leverage and dividends. Based on

it, this study develops the following

hypothesis:


leverage and company‟s dividend policy.

2. Results and discussion

Descriptive statistics

Table 2 presents the descriptive statistics of

selected dependent and independent

variables during the period 2010/11 to

2015/16.


This table shows the descriptive

statistics of dependent, independent and

control variables of commercial banks and

insurance companies for the study period of

2010/11 to 2015/16. DPR(Dividend payout

ratio is defined as dividend per share to

earnings per share, in percentage), DY

(Dividend yield is defined as dividend per

share divided by market per share, in

percentage), GD(Gender diversity refers to

the number of women directors in a board),

FS(Firm size of the banks refers to the total

assets of firms, in Billion) , IO (Institutional

ownership represent shares held by

institutional investors such as banks and

insurance companies, in percentage),




FORTOT (Total foreign ownership is


in Nepalese enterprise, in percentage), LEV(

Leverage is defined as total debt to total

shareholders‟ equity, in

percentage)CEOD(1 if CEO is chairman as

well and 0 if otherwise ), MO(Managerial

ownership is defined as the total percentage

of equity held by inside shareholders that

take part in the company‟s management, in

percentage), LIQ(Liquidity is defined as the

degree to which an asset or security can be

bought or sold in the market without

affecting the asset price, in times),

ROA(Return on assets is defined as net

profit after tax to total assets, in

percentage).


Variables Minimum Maximum Mean Std. Deviation

DY 0.00 16.93 1.29 2.73

DPR 0.00 45.94 4.56 10.13

FS 0.17 129.89 37.48 33.07

MO 0.00 1.00 0.31 0.46

LIQ 0.04 0.56 0.19 0.12

GD 0.00 2.00 0.17 0.43

IO 0.00 80.00 19.95 21.42

FORTOT 0.00 75.00 14.28 23.06

ROA -0.07 4.01 1.16 0.97

LEV 0.04 1.08 0.74 0.29

Table 2 shows that average dividend

yield has a minimum value of 0 percent and a

maximum value of 16.93 percent with

average value of 1.29 percent. The average

value dividend payout is noticed to be 4.56

percent with a minimum value of zero

percent and a maximum value of 45.94

percent. Likewise, the size varies from a

minimum of Rs.18.95 in million to a

maximum value of Rs.25.59 in million

leading to an average of Rs.23.33 million.

Similarly, liquidity varies from a minimum

value of 0.05 times to a maximum value of

0.56 times leading to an average value of

0.19 percent. The average value of leverage

is observed to be 0.74 percent with a

minimum value of 0.04 percent and

maximum value of 1.08 percent. Similarly,

average value of managerial ownership is

observed to be 0.31 percent with a minimum

value of 0 percent and a maximum of 1

percent. Likewise, average value of total

foreign ownership is observed to be 14.28

percent with a minimum value of 0 percent

and a maximum of 75 percent. The average

value of return on assets is observed to be

1.16 percent with a minimum value of -0.07

percent and a maximum value of 4.01

percent. Similarly, average value of gender

diversity on board is observed to be 0.17

percent with a minimum value of 0 percent

and a maximum value of 2 percent. Likewise,

the average value of institutional ownership

of selected companies during the study

period is noticed to be 19.95 percent with a

minimum value of 0 percent and a maximum

value of 80 percent.

Correlation analysis Having indicated the descriptive statistics,

Pearson‘s correlation coefficients are

computed and the results are presented in

Table 3.

Table 3: Pearson’s correlation coefficients

matrix for enterprises

This table shows the Pearson correlation

coefficients of dependent and independent

variables of selected Nepalese commercial

banks and insurance companies for the

study period of 2010/11 to 2015/16.

DPR(Dividend payout ratio is defined as

dividend per share to earnings per share, in

percentage), DY (Dividend yield is defined

as dividend per share divided by market per

share, in percentage), GD(Gender diversity




refers to the number of women directors in a

board), FS(firm size of bank refers to the

total assets of firms, in Billion rupees), IO

(Institutional ownership represent shares


and insurance companies, in percentage),





shareholder‟s equity, in percentage) ,

CEOD( 1 if CEO is chairman as well as 0 if

otherwise ), MO(Managerial ownership is

defined as the total percentage of equity

held by inside shareholders that take part in

the company‟s management, in percentage),

LIQ(Liquidity is defined as the degree to



price, in times), ROA(Return on assets is

defined as net profit after tax to total assets,

in percentage).

Table 3: Pearson’s correlation coefficients matrix for enterprises Variables DY DPR FS MO LIQ CEO

D

GD IO FORT

OT

ROA L

E

V

DY 1

DPR .096

1

FS .287*

*

.304*

* 1

MO -.189* .212*

.410*

*

1

LIQ

.235**

-

0.188

*

-

.418*

*

-

.297*

*

1

CEOD

-.094 .376*

*

.414*

* .111

-

.305*

*

1

GD -.108 .120 .142

.298**

-.198*

.157 1

IO -.110 -.127

.251*

*

-

0.015 -.086 .120 .057

1

FORTO

T .098 .523*

*

.551*

*

.548*

*

-

.303*

*

.513*

*

.352*

* .008

1

ROA -

.236**

.548*

*

.695*

*

.524*

*

-

.413**

.440*

*

.237*

* .045 .652**

1

LEV -

.311**

.245*

*

.599*

*

.383*

*

-

.431*

*

.305*

*

.233*

*

.266*

* .363**

.663*

*

1

Notes: The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and

5 percent level respectively.

The result shows that liquidity and

firm size are positively related to dividend

yield. This indicates that higher the liquidity

and firm size, higher would be the dividend

yield. Likewise, foreign ownership is

positively correlated to dividend yield. It

indicates that increase in foreign ownership

leads to increase in dividend yield. However,

managerial ownership and institutional

ownership are negatively related to dividend

yield. It indicates that increase in managerial

and institutional ownership leads to decrease

in dividend yield. Similarly, CEO duality is

also negatively related to dividend yield. It

implies that the firm having different CEO

and chairman of the board has high dividend

yield. Likewise, gender diversity is also

negatively related to dividend yield. It means




that smaller the number of women directors,

higher would be the dividend yield.

Similarly, return on assets and leverage are

negatively related to dividend yield. It

indicates that lower the return on assets and

leverage, higher would be the dividend yield.

The table shows that liquidity and

institutional ownership are negatively related

to dividend payout ratio. It indicates that

higher the liquidity and institutional

ownership, lower would be the dividend

payout ratio. However, the result also shows

that firm size is positively correlated to

dividend payout ratio. This means that larger

the firm size, higher would dividend payout

ratio. Likewise, managerial ownership and

foreign ownership are positively correlated

to dividend payout ratio. It indicates that

increase in managerial ownership and

foreign ownership leads to increase in

dividend payout ratio. Similarly, CEO

duality is also positively related to dividend

payout ratio. It implies that the firm having

CEO and chairman of the board as the same

person has high dividend payout ratio.

Likewise, gender diversity is also positively

related to dividend payout ratio. It means

that larger the number of women directors,

higher would be the dividend payout.

Similarly, return on assets and leverage are

positively related to dividend payout ratio. It

indicates that higher the return on assets and

leverage, higher would be the dividend

payout ratio.

Regression analysis

Having indicated the correlation

coefficients, regression analysis has been

performed and the results are presented in

Table 4. Table 4 shows that the beta

coefficient for firm size is positive which

shows that smaller the firm size, smaller

would be the dividend payout ratio. The

beta coefficient for managerial ownership is

positive which indicates that lower the

managerial ownership, lower would be the

dividend payout ratio. Likewise, the beta

coefficient for CEO duality is positive which

shows that the firm having CEO and

chairman of the board as the same person

has high dividend payout ratio.

Table 4: Estimated regression results of

FS, MO, LIQ, CEOD, GD, IO, FORTOT,

ROA and LEV on dividend payout ratio The results are based on pooled

cross-sectional data of 14 commercial banks

and 7 insurance companies with 126

observations by using linear regression

model. The results are based on the 6 years

(2010-2016) time series data of Nepalese

enterprises by using the linear regression

model. The model is DPR = β0 + β1MO +

β2LIQ + β3CEOD + β4FORTOT + β5FS +

β6BGD + β7IO+ β8LEV+ β9ROA+ e.

Dividend payout ratio and dividend yield

both refer to dividend policy. DPR(Dividend

payout ratio is defined as dividend per share

to earnings per share, in percentage), DY

(Dividend yield is defined as dividend per

share divided by market per share),

GD(Gender diversity refers to the number of

women directors in a board, in percentage),

FS( firm size of bank refers to the total

assets of firms, in Billion rupees) , IO

(Institutional ownership represent shares


and insurance companies, in percentage),





shareholder‟s equity, in percentage) ),

CEOD( 1 if CEO is chairman as well as 0 if

otherwise ), MO(Managerial ownership is

defined as the total percentage of equity held

by inside shareholders that take part in the

company‟s management, in percentage),

LIQ(Liquidity is defined as the degree to



price, in times), ROA(Return on assets is

defined as net profit after tax divided by total

assets, in percentage).




Table 4: Estimated regression results of FS, MO, LIQ, CEOD, GD, IO, FORTOT, ROA

and LEV on dividend payout ratio

Notes:

i. Figures in parentheses are t- values.

ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent and

5 percent level respectively.

iii. Dependent variable is dividend payout ratio.

However, the beta coefficient for

liquidity is negative which indicates that

lower the liquidity, higher would be the

dividend payout ratio. The beta coefficient

for gender diversity on board is positive. It

indicates that larger the number of female

directors on board, higher would be the

dividend payout ratio. This finding is similar

to the findings to the (Adams, 2008).

Likewise, beta coefficient for return on

assets is positive. This means that higher the

return on assets, higher would be the

dividend payout ratio.

Similarly, beta coefficient for foreign

ownership is positive. It implies that higher

the foreign ownership of the company,

higher would be the dividend payout ratio.

Similarly, beta coefficient for institutional

ownership is negative. It implies that higher

the institutional ownership of the company,

lower would be the dividend payout ratio.

Nonetheless, the beta coefficient for

leverage is positive which shows that more

leveraged the firm is, higher would be the

dividend payout ratio.Table 5 shows the

regression results of firm size, liquidity,

CEO duality, return on assets, foreign

ownership, gender diversity on board,

managerial ownership, institutional

ownership and leverage on dividend yield of

Nepalese enterprise.

Table 5: Estimated regression results of

FS, MO, LIQ, CEOD, GD, IO, FORTOT,

ROA and LEV on dividend yield

The results are based on pooled

cross-sectional data of 14 commercial banks

and 7 insurance companies with 126

observations by using linear regression

model. The results are based on the 6 years

(2010-2016) time series data of Nepalese

enterprises by using the linear regression

model. The model is DPR = β0 + β1MO +

β2LIQ + β3CEOD + β4FORTOT + β5FS +

β6BGD + β7IO+ β8LEV+ β9ROA+ e.

DPR(Dividend payout ratio is defined as

dividend per share to earnings per share),

Model Intercept FS MO LIQ CEOD GD IO FOR

TOT

R

O

A

L

E

V

Adj

R2

SEE F-value

1 1.07

-0.82

0.09

(3.56)** 0.85 9.69 12.66

2 3.13

(2.94)**

4.63

(2.42)* 0.04 9.94 5.85

3 7.54

(4.59**

-15.34

(-2.12)* 0.03 9.99 4.52

4 2.58

(2.72)**

9.25

(4.51)** 0.13 9.43 20.38

5 4.09

(4.25)**

2.8

-1.34 0.006 10.1 1.81

6 5.76

(4.68)**

-0.06

(-1.42) 0.008 10.09 2.02

7 1.28

-1.41

0.23

(6.83)

**

0.27 8.67 46.72

8 -2.04

(-1.73)

5.7

(7.

29)

**

0.29 8.51 53.16




DY (Dividend yield is defined as dividend

per share divided by market per share),

GD(Gender diversity refers to the number of

women directors in a board), FS( firm size

of bank refers to the total assets of firms) ,

IO (Institutional ownership represent shares


and insurance companies), FORTOT (Total

foreign ownership is defined as the

ownership of foreign investor in Nepalese

enterprise), LEV( Leverage is defined as

total debt to total shareholder‟s equity ),

CEOD(A binary that equal one if the CEO is

chairman of the board and zero otherwise),

MO(Managerial ownership is defined as the

total percentage of equity held by inside

shareholders that take part in the company‟s

management), LIQ(Liquidity is defined as

the degree to which an asset or security can

be bought or sold in the market without

affecting the asset price), ROA(Return on

assets is defined as net profit after tax to

total assets)

Table 5: Estimated regression results of FS, MO, LIQ, CEOD, GD, IO, FORTOT, ROA

and LEV on dividend yield

Mo

del

Inter

cept Regression Ad

j

R2

SE

E F

FS M

O LIQ

CE

OD

G

D IO

FORT

OT ROA

LE

V

1

2.19 -

0.02

0.7

5

2.

62

11

.2 (6.16)

**

(-

3.34

)**

2

1.64

-

1.1

1

0.0

28

2.

69

4.

57 (5.69)

**

(-

2.1

4)*

3

0.32

5.18

0.0

48

2.

66

7.

27 (-

0.75)

(2.70

)**

4

1.43

-

0.62

0.0

01

2.

73

1.

1 (5.22)

**

(-

1.05

)

5

1.41

-

0.6

8

0.0

04

2.

72

1.

46 (5.52)

**

(-

1.2

1)

6

1.58

-

0.0

1

0.0

04

2.

72

1.

51 (4.74)

**

(-

1.2

3)




7

1.46

(5.12)

**

-0.01

(-1.10)

0.0

2

2.

73

1.

21

8

2.06

-0.66

0.0

48

2.

66

7.

29 (5.58)

**

(2.70

)**

9

3.46

-

2.93

4 0.9

2.

6

13

.3 (5.44)

**

(-

3.65

)**

10

1.53 -

0.02

-

0.3

7

2.83 -0.03

0.7

3

2.

63

3.

45 (2.29)

*

(-

1.64

)

(-

0.6

2)

-1.33 (-

0.08)

11

3.30

(4.99)

**

-

0.02

(-

1.54

)

0.01

-0.90

-0.06

(-

0.15)

-

2.00

(-

1.72

)

0.0

8

2.

61

3.

26

Notes:

i. Figures in parenthesis are t-values

ii. The asterisk signs (**) and (*) indicate that the results are significant at 1 percent

and 5 percent level respectively.

iii. Dividend yield is dependent variable.

Table 5 shows that the beta

coefficient for liquidity is positive. This

means that higher the liquidity, higher would

be the dividend yield. This finding is similar

to the findings of (Ho, 2003). However, the

beta coefficient for managerial ownership is

negative. It indicates that higher the

managerial ownership, lower would be the

dividend yield. The beta coefficient for

foreign ownership is positive which shows

that higher the foreign ownership of the

company, higher would be the dividend

yield.

Likewise, the beta coefficient for

institutional ownership is negative. It implies

that higher the institutional ownership, lower

would be the dividend yield. The table

shows that the beta coefficient for CEO

duality is negative. It indicates that firm

having both CEO and chairman of the board

as the different person has high dividend

yield. The beta coefficient for gender

diversity on board is negative which

indicates that smaller the number of female

directors on board, higher would be the

dividend yield. Likewise, beta coefficient for

return on assets is negative which shows that

lower the return on assets, higher would be

the dividend yield. Similarly, beta

coefficient for leverage is negative. It

implies that higher the leverage of the

company, lower would be the dividend

yield. This finding is similar to the findings

to the (Patra et al., 2012)

4. Summary and conclusion

The dividend per share and dividend yield

becomes one of the attractive tools for both

existing and potential investors. It is not only

demanded by the high class investors, but

also attracted the interest of small investors.

The high rate of dividend per share and

dividend yield pushes the investors to invest




in stocks, but many of them do not have

much knowledge about its operations and

factors affecting dividend policy. There are

various internal and external factors that

influence the dividend policy. The financial

performance of companies are the most

essential factors that can give visibility to

investors which plays a significant role to

gain reliable and consistent return by

selecting winning portfolio.

This study attempts to examine the

relationship between firm‘s performance and

dividend policy in Nepalese commercial

banks and insurance companies. This study

is based on secondary data of 14 commercial

banks and 7 insurance companies with 126

observations for the period of 2010/11 to

2015/16.

The study shows that firm size and

foreign ownership are positively related to

dividend payout ratio and dividend yield.

This indicates that larger the firm size and

higher the foreign ownership, higher would

be the dividend payout ratio. It also indicates

that smaller the firm size and smaller the

foreign ownership, smaller would be the

dividend yield. The regression results show

that institutional ownership has negative

impact on the dividend

payout ratio and dividend yield.

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FOREIGN DIRECT INVESTMENT: IMPACT ON INDIA

DR. J. P. BHOSALE

Head : Research Centre in Commerce,


Tal : Junnar, Dist : Pune, Pin : 410504, Maharashtra, India.

Abstract

The traditional practice of selling goods to the consumer is unorganized retail like

Kirana store, Mom store. They have contact with local customer in relation seeming to be

relatives, Usually they are mingled with their customer as neighbour. By the time and

economy goes up, the consumers purchasing power and preference is changing. Based on the

taste & preference, now the unorganized sector is converting into organized sector that starts

from the urbanized area. Compared to other industry, the retail industry is bigger booming

potential industry. Each and every in need of product approach the retail shop. The domestic

organized players are very few in comparison of unorganized player. Compared with the

international organized player, the domestic players who are in the lack of capital are not

effective in healthy competition. SO the industry is in need of capital infusion.

Keywords: Foreign Direct Investment, Marketing, Retail, E-accounting.

Introduction

E-accounting is new development in

field of accounting. It means all your

transactions will record in online server or

data base. E-accounting involves performing

regular accounting functions, accounting

research and the accounting training and

education through various computer based

internet accounting tools such as digital tool

kits, various internet resources. International

web-based materials, institute and company

databases which are internet based, web

links, internet based accounting software and

electronic financial spreadsheet tools to

provide efficient decision making. An E-

accounting system could be thought of as an

inter-organizational system because of its

capability to electronically integrate a set of

firms.

According plays a critical role in the

success or failure of contemporary business

institutions. Accounting systems are

responsible for recording, analyzing,

monitoring and evaluating the financial

condition of companies, preparation of

documents necessary for tax purposes,

providing information support to many other

organizational functions and so on. Prior to

the advent of personal computers, businesses

were limited to manual methods for keeping

track of financial data.

In many operational applications the

accounting entries can be generated as a by-

product of the underlying transactions. A

computerized accounting system is able to

handle financial data efficiently, but the true

value of an accounting system was that it

was able to generate immediate reports

regarding the company.

Objectives of the Research Study

1. To study the conceptual background of

Retail Sector in India.

2. To study the position of Foreign Direct

Investment in India

3. To study the Impact of Foreign Direct

Investment

4. To give some suggestions for developing

Retail Sector in India.


The present research paper is based on

secondary data only. The secondary data is

collected from various references books,

research articles and websites.

Foreign Direct Investment in India

Under Foreign exchange

Management Regulations, 2000 the Indian

Companies are allowed to raise funds from




overseas investors. An Indian company

which is not engaged in any activity or in

manufacturing of item included the list a and

b appended may issue fresh shares subject to

the condition and sectoral cap as indicated

under Foreign Direct Scheme, subject to the

terms and condition specified.

Who can Invest in India

There are following categories of

person resident outside India who may

invest in the capital of Indian Company:

1. A non-resident entity.

2. A citizen or entity of Bangladesh under

Govt. Route.

3. NRI resident as well as citizen of Nepal

and Bhutan on repatriation basis.

4. Erstwhile OBCs as incorporated non-

resident entities.

5. An FLL under the Portfolio Investment

Scheme.

6. SEBI registered FLLs or NRIs through a

registered broker on recognized India

Stock Exchange.

7. SEBI registered Foreign Venture Capital

Investor.

Foreign Direct Investment (FDI) is

permitted as under the following forms of

investments:

1. Through financial collaborations.

2. Through joint ventures and technical

collaborations.

3. Through capital markets via Euro issues.

4. Through private placements or

preferential allotments.

Indian Entities Into Which FDI Can Be

Made

There are below mentioned entity

registered or incorporated under Indian law

can raise funds against capital :

i. An Indian Company.

ii. Partnership Firm.

iii. Proprietary Concern.

iv. Indian Venture Capital Undertaking

(ICVF)

v. Ventures Capital Fund (VCF)

vi. Limited Liability Partnership (LLP)

A Non-resident Indian or a person of

Indian Origin resident outside India can

invest in the capital of a firm or a proprietary

concern in India on non-repatriation basis.

Foreign Direct Investment in Trust other

than Venture Capital Funds is not permitted.

FDI is not allowed to invest in the above

mentioned entities engaged in any

agricultural activity or real estate business or

print media. FDI in resident entities other

than those mentioned above is not permitted.

Type of Instruments

An Indian company arrange fund

from a person resident out of India by issue

of following type of instrument which are

given below:

1. Equity Shares.

2. Preference Shares.

3. Debentures.

4. Issue of Foreign Currency Convertible

Bonds.

5. Depository Receipts.

6. Foreign Currency Exchangeable Bonds.

7. Impact of Foreign Direct Investment

8. Forex Reserve

9. As the limit is increased to 51% in the

multi brand retail, the direct investment

from abroad called FDI would inflow to

start the business. The inflow of capital

would increase the capital reserve in the

Balance of payment which shows the

ability of the nation in terms of Forex.

Farmers The one of the current

problem of Indian economic is fiscal deficit

which is mostly caused by subsidy give to

the farmers which is considered as

unproductive. The one way to cut such

subsidy is to make the farmers independent

by making the system securing them to be

paid good price for the commodity. The

organized retailers that are capital giant are

able to purchase directly from the farmers

paying good price. So the govt. should be

ensuring that the farmers are getting paid the

price of what they are eligible to.

SME

In the norms that are instructed to the

foreign player, they should purchase 30% of

the product they deal with from the small

and medium Enterprise. This ensures the

development of SME. The foreign player

would like to provide the quality product.

The SME would be encouraged to produce

the commodity that is of high quality.




Infrastructure

The players are imposed with the

restriction of investing 50% of their

investment on the Back end infrastructure.

the ruling party in India where the economic

development is suffered by lack of

infrastructure is very cautions about to invest

in such area. It would become base for

economic in many ways, say transportation.

Distribution

The distribution system is one of the

factors determining the cost of product. As

they are invested in the infrastructure, they

could follow JIT. Say Wal-Mart, they are

not interested in expending in the stock

maintenance.

Food Wastage

With the poverty in one side, the

wastage of food is no another side in the

same country. It requires the effective

distribution system to avoid food wastage.

With the good back end infrastructure, they

can able to serve the goods in an

optimization way.

Employment

The more employment would be

created in the country either directly or

indirectly where youth pass out is increasing

as much as creation of employment. It would

be generated in the agriculture,

manufacturing, service industry which,

consists of GDP. The more people get

employed would rehabilitate the economic

cycle.

Retail Industry Allowing FDI in multi brand retail would

infuse the new blood into the industry that

has potential. Foreign players that are

competitive oriented would implement new

strategy.

Another Side Impact

Middle Man

The middle man in the supply chain

including non hoarders shall get affected. In

the long run, they will be deprived of trade

business that causes unemployment. So it

could be matched with the need of

employees by the organized sector by

appropriate policy by the govt.

Dependability

The country may depend on another

country as FDI inflow is increasing where

the country independency is decreasing. The

economic growth may become more

endangered on depending on another

country economic. The capital giant may

dominate the industry exceeding the

domestic player. The revenue would outflow

abroad affecting Forex reserve.

Conclusion

The expectation behind the opening

of FDI in multi brand retail is gigantic. The

govt. should take precautionary measure

framing the rules to ensure that any industry

would not get affected. On the periodical

manner, it should checked how much it

contributes towards the growth of the

economy and impact in other industry.

On the unorganized sector, the

traditional players are side to get affected on

account of opening of FDI in multi brand

retail. Whereas those same kind of retailers

are surviving in US. France, etc. These

players who are having close relationship

with the customers and know their demand

need to enhance the modern trend in retail in

order to survive. Practically speaking, most

of the consumers are reluctant to shop in

organized retail shop spending more time.

Whatever may be the opening, the put

forward is stifle healthy competition that

would change the retail industry. As any

industry greeting modernized in the

globalization, the FDI in retail is not to be

eluded in the developing country where

other developing countries like China are

implemented this practice before a decade.

Bibliography 1. Nilam B. Goyal, ‗Foreign Direct

Investment in India‘.

2. Avhad S.N. ‗Impact of FDI in Retail In

India.‘

3. Government of India - FDI Policy in

Retail - Marketing Mastermind, Feb-

2008, P-57.

4. IISBC Global Research - Jumbo Retail -

organizing Retailing in India Gets llypcr-

May. 2005 P- 23.




5. Indian Management Report - Beyond the

retail Hype -Indian Management - Jan -

2007, P-13.

6. S. R. SubbaRao - Organising Retail

Sector In India - Growth and Impact on

Economy - Journal of Indian

Management & strategy - April - June,

2006, P-64.

7. Marketing Management – 11th

Edition –

Philp Kotler.

8. Retailing Management – Text and Cases

2nd

Edition- Swapana Pradhan.

9. Acharaya B. K. and Goverkar P. B.,

(1985), "Marketing and Sales

Management",

Himalaya Publishing House, Bombay.

10. Bose, Biplab, S., (1998) "Hand Book of

Marketing Management", Himalaya

Publishing House, Bombay.

Webliography

1. www.etretailbiz.com

2. www.retailory.com




UNDERSTANDING THEBASIC OFBITCOIN

CA KIRAN GAJJAR Assistant Professor

College : Bunt Sangha‘s Anna Leela College

Abstract

Bitcoin is a hot topic and a frequently discussed among investors, entrepreneurs and

stock traders, so you should to know about it. Bitcoin is a digital currency that not controlled

by a centralized authority like a government or central bank..Today Bitcoin has emerged as

the most successful crypto currency. Since its launch in 2009 a virtual currency, bitcoin, has

grown in both its popularity and its use. In simple terms Bitcoin is as cheme designed to

facilitate the transfer of value between the parties. Just like traditional payment systems, which

transfer funds denominated in sovereign currencies. Bitcoin is a crypto currency. A crypto

currency is nothing but a medium of exchange that uses cryptography to manage the creation of

new units and to secure the transactions. Bitcoin is one of the mobile app or computer

program that provides a personal Bitcoin wallet and allows a user to send and receive

bitcoins with them. This paper provides detail information about bitcoin.

Key Words: Bitcoin, Cryptography, Digital currency, Cryptocurrency

I -Introduction

Within a short period of time Bitcoin

grew to comprise billions of dollars of

economic value. Bitcoin holds a universal

value throughout the world. Price of one

bitcoin is 8,31,436 as on 28/12/2017. The

value of Bitcoin is depends on supply and

demand in a market. It means that the price

of Bitcoin would be high if the higher the

number of people interested in buying

Bitcoins, On the other hand, if a lots of

people wants to sell Bitcoins, than it would

reduce price of bitcoin. Bitcoin exchange

rates exhibit somewhat complicated

dynamics. This paper present the micro-

structure of the Bitcoin transaction process

and highlight the use of cryptography for the

purposes of transaction security and

distributed maintenance of ledger.

Methodology

This paper is descriptive in nature

based on secondary data collected through

various websites, book and journals.

Objective

To study various basic aspects of crypto

currency, bitcoin.

II- Bitcoin: anoverview

As mention earlier the Bitcoin is one

type of a payment system that facilitates the

transfer of value between parties. Just like at

traditional payment systems, which typically

involve the transfer of value denominated in

a sovereign currency such as the Indian

Ruppes, US dollar, Bitcoin has its own

metric for value called a bitcoin.at the time

of this writing ,a bitcoin has no legal tender

statusin any jurisdiction. Some economist

shave questioned whether bitcoins meet the

standard attribute so money.

Figure1showsadiagramofpaymentsontheBitc

oinusers‘network.




Figure 1: The Bitcoin conceptBlockchain

Note: There are four entities A,B,C and D, transacting directly with each other ,i.e. with no

intermediary. In addition, the diagram shows the possibility of B transacting

withitself.Alltransactionsarechronologicallyrecordedinapublicledgercalleda block chain.

Theprocedureforrewardingthosewho

makerecordsontheblockchainembedsthe

economic incentives driving the system and

appears to ―hard-code‖ the growth of the

bitcoin supply. Specifically, there ward for

recording a transaction includes a fee and

newly minted bit coins.

The no desire entities and the

directed arrows depict payments in bitcoin.

As the diagram suggests, the entities transact

directly, in traditional payment systems

where various parties, such as banks,

processors, and networks, are between the pay

or and payees, there is no intermediary in

Bitcoin. In public ledger each and every

transaction is chronology- call recorded,

This record called the block chain, by

participants in the network. There is are

ward for recording transactions in the block

chain, and the participants in the Bitcoin

system compete to make records. Well-

defined process, which guarantee scan senses,

elects the winning participant and the block

chain is updated .Importantly, each participant

keeps a copy of the ledger, and the consensus

of the incremental changes guarantees that

these copies are identical. The Bitcoin

transaction process is fairly complex and

computer scientists are actively investigating

aspects of its security, privacy, distributed

control and incentive schemes.

The Bitcoin transaction process uses

cryptography to verify transactions, process

payments, and control the supply of

bitcoins. Bitcoin relies on two cryptographic

schemes:digital signatures and cryptographic

hash functions.

Digital signatures

Digital signature is a cryptographic

value that is calculated from the data and a

secret key known only by the signer.

In real world, the receiver of

message needs assurance that the message

belongs to the sender and he should not be

able to repudiate the origination of that

message. This requirement is very crucial in

business applications, since likelihood of a

dispute over exchanged data is very high.

Digital signatures are a way to

authenticate a message between a sender

and a receiver in a way that ensures:

(i) authentication: the recipient can

verify that the message came from

the sender,

(ii) non-repudiation: the sender cannot

deny sending the message,

(iii) Integrity: the message has not been

tampered with.

The implementation of digital

signatures involves public key encryption,

where a pair of keys—public and private—

is generated with certain desirable

properties.

A

B D

C




Cryptographic hash functions

Ingeneral,a crypto graphic hash

function takes as input a string of arbitrary

length and returns as tring with

predetermined length. We will refer to the

input as message and the output

ashashh.The function is deterministic,

meaning that the same input will always

give the same out puth. Another desirable

property of the hash function is that even

small changes in message m are likely to

change hash h = hash(m) significantly. This

makes it very unlikely for someone to be

able to infer the content of the message from

the hash.

III- History of Bit Coin

The first use of Bitcoin as a currency

is thought to be a transaction in May 2010,

where one user ordered pizza delivery for

another in exchange for 10,000 bitcoins.

Since then, an increasing number of

merchants and services have adopted Bitcoin

and the price has generally risen, reaching a

peak. Bitcoin was not traded on any

exchanges in 2009. Its first recorded price

was in 2010. Technically, Bitcoin was worth

$0 in 2009 during its very first year of

existence.

New Liberty Standard Publishes First

Exchange Rate - October 5, 2009

New Liberty Standard opens a

service to buy and sell bitcoin, with an initial

exchange rate of 1,309.03 BTC to one U.S.

Dollar, or about eight hundredths of a cent

per bitcoin. The rate is derived from the cost

of electricity used by a computer to generate,

or ―mine‖ the currency.

The First Bitcoin-to-Fiat Exchange

Occurs - October 12, 2009

Using PayPal, New Liberty Standard

buys 5,050 BTC from Sirius for $5.02,

equating to roughly one tenth of a cent per

bitcoin.

Three New Exchanges Open Supporting

More Fiat Currencies - March 27, 2011

On March 27, 2011, Britcoin

launches the first exchange to trade bitcoin

and British Pound Sterling (GBP). Just days

later, on March 31, Bitcoin Brazil opens a

service for face-to-face exchange in

Brazilian Reals (BRL) and U.S. Dollars. On

April 5, BitMarket.eu begins facilitating

trades in Euros (EUR) and other currencies.

Together, they simplify bitcoin ownership

and trading for hundreds of millions of new

users and the market is expanded

enormously.

Bitcoin 0.8 Causes Brief Hard Fork -

March 11, 2013

Shaking confidence in Bitcoin and

the validity of some transactions, the price

briefly plummets and the Mt. Gox exchange

temporarily suspends bitcoin deposits.

Thanks to a swift and coordinated response

by Bitcoin developers, miners, and

community members, the fork is resolved

within hours after the operators of two large

mining pools, Michael Marsee (of BTC

Guild) and Marek Palatinus (of slush's pool),

honourably forgo some of their accumulated

mining rewards in order to downgrade to the

previous, compatible version. An updated

version, 0.8.1, is released shortly after,

containing safeguards to prevent the original

problem.

Dell Accepts Bitcoin - July 18, 2014

Founder Michael Dell announces on

Twitter that dell.com now accepts Bitcoin.

Customers in the United States (only) can

purchase any product listed on Dell's online

marketplace using Bitcoin. All Bitcoin

transactions are to be handled by Coinbase, a

Bitcoin payment processor. At a yearly

revenue of $56 billion, Dell becomes the

largest company to accept Bitcoin.

Paypal Subsidiary Braintree to Accept

Bitcoin - September 8, 2014

Braintree, a subsidiary of Paypal,

announces that it is partnering with Coinbase

to accept Bitcoin payments on their

platform. Over the next three months, the

two companies will work on integrating

Bitcoin payment processing for Braintree

merchants. The Bitcoin payment option will

be seamlessly enabled for all merchants on

the platform. Braintree merchants need only

sign up for a Coin base account and link it to

their Braintree account




New York State Releases the BitLicense -

June 3, 2015

Superintendent of New York State

Department of Financial Services, Benjamin

Lawsky, released a set of customized rules

meant to regulate Bitcoin and digital

currency businesses that serve customers

located in New York State. These

regulations are the first ever directly targeted

at digital currency businesses.

Bitcoin declared as a commodity by the

US regulator - September 18, 2015

The Commodity Futures Trading

Commission (CFTC), announced it had filed

and settled charges against a Bitcoin

exchange for facilitating the trading of

option contracts on its platform. They

state: "In this order, the CFTC for the first

time finds that Bitcoin and other virtual

currencies are properly defined as

commodities,".

Bitcoin Sign Accepted into Unicode -

November 3, 2015

The Unicode committee accepted the

Bitcoin currency symbol (uppercase B with

2 vertical bars going through it, but only

visible at the top and bottom) to be in a

future version of the Unicode standard. The

glyph will be given the slot "U+20BF

BITCOIN SIGN" and eventually will render

with standard system fonts.

Steam Accepts Bitcoin - April 27, 2016

The popular gaming platform Steam

began accepting Bitcoin as payment for

video games and other online media. Valve,

the company that owns Steam, enlisted

Bitpay as the payment processor to facilitate

Bitcoin payments and help target

international customers where credit card

payments weren't as ubiquitous.

Craig Wright Claims to be Bitcoin's

Creator - May 2, 2016

Craig Wright publicly announced he

was Satoshi Nakamoto by means of a blog

post. The blog post featured a disjointed

demonstration of a private key signing,

which seemed to be an attempt to verify

Wright was in possession of Nakamoto's

private Bitcoin keys. This verification was

later debunked by the Bitcoin community.

Japan Declares Bitcoin as Legel Tender -

April 1, 2017

Japan recognizes bitcoin as a legal

method of payment. The country's

legislature passed a law, following months

of debate, which brought bitcoin exchanges

under anti-money laundering/know-your-

customer rules, while also categorizing

bitcoin as a kind of prepaid payment

instrument.

Bitcoin "splits" into Bitcoin (BTC) and

Bitcoin Cash (BCH) - August 1, 2017

After years of debating about how

Bitcoin should scale the controversy turned

into action. The Bitcoin code split in two

different directions. One direction

supporting the optimization of Bitcoin

blocks through Segwit, while the other

direction supports bigger blocks of up to

8mb.

IV- Bitcoin ownership and

Bitcoinaddresses

From a technical point of view,

bitcoins reside in what is known in the

bitcoin system as bitcoin addresses. The

ownership of a particular amount of bitcoins

reduces to the capability of sending

payments over the Bitcoin network from the

bitcoin address(es) with which these bitcoins

are being associated. The capability of

sending payments from Bitcoin addresses is

controlled via digital signatures In simple

words, owning the bitcoins in a given bitcoin

address amounts to knowing the private key

which corresponds to the public ID of that

address.

At any point in time every bitcoin

address is associated with a given bitcoin

balance which is, in effect, public

information. This is the case because any

participant in the Bit- coin network can

deduce the bitcoin balances following a

given transaction history that is recorded in

the public ledger. In particular, every

existent or proposed transaction can be

checked for consistency against the

preceding history of transactions i.e. it can

be verified that the amounts transacted are




available in the corresponding bitcoin

addresses.

V- The Bitcoin transaction process The Bitcoin transaction process has

mechanisms in place which guarantee that

(a) the verification of each transaction is

distributed among multiple participants in

the network,

(b) the recording of each transaction is time

discretized, i.e. transactions are linearly

ordered with consecutive time stamps, (c)

the participants in the payment network

compete and are rewarded for recording a

transaction, and (d) multiple nodes cross-

check each transaction record. Below we

review the Bitcoin transaction process

highlighting the above properties.

A Bitcoin transaction as seen in the data.

Exchange rates

Exchanges are platforms on which a user who wants to either sell or buy bitcoins with

anothercurrencycandoso.Muchofthemediacoverageregardingthesky-rocketingprice of bitcoin

is derived from information coming from these exchanges. As figures hows, the value of

bitcoin relative to dollars increased most dramatically in the fourth quarter

of2013.Althoughtradingofthevirtualcurrencybeganaroundmid-2010, muchofthis trading was

fairly sparse up until 2013. For this reason we focus on the period starting in

January2013.Exchange rate USD/BTC

900

600

300

0

2012−01 2012−07 2013−01 2013−07 2014−01 2014−07

1

2

3

4

5

6

7

8

9

10

11

12

13

14

1.3

1.2

0.9

1.5

9.5

0.5

5.4

1.4

1

1

2.5

0.9

0.8

0.7

TX

1.8

1.4

2

12

2.2

1.6

1.9

1.7

0.7

2.1

1.5

15

16

17

18

19

20

21

22

23

24

25

US

D/B

TC




Intra-day volatility USD/BTC

20

10

0

2012−01 2012−07 2013−01 2013−07 2014−01 2014−07

Above figure shows the

normalized daily exchange rate

volatility of BTC for USD trades.

This measure shows how much the

exchange rate fluctuates on a given

day as a percentage of the average

daily price. Note how remarkably

stable this measure of volatility is.

With a handful of exceptions, it has

stayed below the 12 − 15 percent

limit. It appears that, accounting for

the large mean growth of bitcoin

value, the risk associated with holding

bitcoins for very short periods of time

has remained relatively stable.

Notably, however, the disruptions in

the normalized exchange rate

volatility are of substantial magnitude

and appear difficult to explain or to

predict. In particular, we note that

spreads in highly liquid foreign

currency exchange markets are

generally very small or else there

would be room for arbitrage. Thus, if

we were to hypothesize that the

bitcoin market is similarly highly

liquid, we would expect there to be

very little spread between its different

exchange rates.

VI-Conclusion

Motivated by recent

developments in the Bitcoin ecosystem,

this paper provides the necessary

technical background to understand

basic Bitcoin operations. This paper

discussed basic concept of bitcoin,

history of bitcoin, general patterns of

Bitcoin usage, and examines the use of

Bitcoin for investment and payment

purposes. The number of daily users

may have doubled every eight months,

the transaction volume is negligible

compared to the volume of U.S.

payment systems. In addition, the

patterns of circulations of bitcions and

the dynamics of the bitcoin exchange

rate are consistent with low usage of

Bitcoin for retail payment transactions.

Finally, conclude that the exchange rates

between bitcoin and other currencies are

not well aligned, which may because of

lack of depth of the exchange markets

and as costly exchange rather than

unexploited arbitrage opportunities.

References

https://www.gqindia.com/content/if-youd-

invested-100-in-bitcoin-in-2010-heres-

how-rich-youd-be-today/

https://futurism.com/images/the-entire-

history-of-bitcoin-in-a-single-infographic/

https://99bitcoins.com/price-chart-history/

Yermack, David, ―Is Bitcoin a Real

Currency? An economic appraisal,‖

NBER working paper, December 2013.

Lo, Stepahanie and J. Christina Wang,

―Bitcoin as Money,‖ Federal Reserve

Bank of Boston, Current Pllicy

Perspectives No 14-4, 2014

ST

D(%

)




AN IMPACT OF STRATEGIC HUMAN RESOURCE MANAGEMENT ON

ORGANIZATIONAL PERFORMANCE

DR.KALHAPURE BALASAHEB. B.

HOD & Assist. Prof. in Commerce,

Annasaheb Awate College Manchar, Ambegaon,Pune. (M.S).

Abstract

The aim of this research paper is focused on the impact of the strategic management

of human resource in achieving organizational performance. This research paper was

conducted based on primary and secondary sources. How much organizations appear

competitive in the market through achieving the performance indicators? How important is

the management of human resources in achieving organizational performance? So, through

the skills, behaviors and attitudes would be expected by human resources to achieve the

required performance in the organization. Organizational performance is getting more and

more important, especially in a market with greater competition and dynamic.

Organizational performance is measured through different indicators directions. It

guarantees the continuity of the organization to be competitive in a global marketplace.

Normally, the implementation of performance indicators achieved through human resources.

Human resources are the key for keeping the organization in the market so competitive.

These human resources need to be managed effectively to achieve the required performance

of the organization. It is necessary to manage strategically the human resources and to adapt

at its strategy with organizational strategy.

Introduction: -

Human resources are regarded as one

of the most important sources of today's

firms. Human resources management is

more important than other competitive

sources because these people use other

assets in organization, create

competitiveness and realize objectives. Thus

firstly, organizations must understand the

expectations of their workforce in order to

achieve the desired performance. The

realization of the expectations of employees

will enable the desired behavior of

employees in the organization. Some of the

desired outcomes of the organization in

managing their workforce are: competence,

cooperation of employees with managers,

cooperation of employees between them,

showing the capabilities of employees;

motivation, commitment and satisfaction;

attitude and presence; employee behaviors.

Organizations are seeking to create much

competition between them, taking more

market, more customers, more sales, etc.

Rapid changes stemming from globalization,

advancement of information systems and

other factors have caused higher

competition. Many organizations are driven

by the market to set their goals in their

performance. Some of the goals are: cost

reduction, achieving sales levels, increasing

the number of customers, increasing the

market percentage, improving productivity

and quality, innovative products. The

realization of these goals will be achieved

through the human resources management in

organizations. Workforce, as the key to

success, will enable the achievement of

organizational performance.

The overall goal of performance

management is to create a culture as high

performance in which individuals and teams

to take responsibility for the continuous

improvement of business processes and their

skills and contribute in achieving the targets

set by managers. In particular, management

performance can be expressed as the




approximation of individual objectives of

employees with organizational objectives

provided that employees support the culture

of the organization. It provides for

expectations to be defined and agreed in

terms of role responsibilities and

accountabilities skills and behaviors

The purpose of strategic human

resource management is to improve business

performance through people management.

The organizations need to manage their

human resources effectively and efficiently

to achieve the desired goals and objectives.

The achievement the goals and objectives

translate also in better performance. So, the

issues raised for discussion are: How should

organizations manage their main source –

human resources? Does strategic human

resource management help to meet the

needs, the goals and objectives of the

business? As should be adapted strategic

human resource management to realize the

performance? How should adapt strategic

management of human resources to increase

organizational performance?

Objectives:

To observe if organizations use the

strategy of human resource management

for the achievement of their performance

objectives.

To observe if organizations use the

strategy of human resource management

for the achievement of their performance

objectives.

To observe closely how applicable is in

practice the theoretical aspect of strategic

human resource management for the

achievement the organizational

performance.

Literature Review;

The achievements of organizational

objectives can be different in different

organizations. The studies emphasize the

impact of HRM on organizational

performance. Basically, and other studies in

this area, point out that it is necessary to

achieve organizational objectives and

management of human resources should be

strategic. Also, the strategies of human

resource management should be integrated

with the overall organizational strategy in

the context of achieving the required

performance. There has been much research

on strategic human resource management

that affects organizational performance. The

discussions and definitions will be divided in

two parts of speech: the strategic

management of human resources and

organizational performance.

Strategic HRM Meaning;

Strategic HRM is a process that

involves the use of overarching approaches

to the development of HR strategies, which

are integrated vertically with the business

strategy and horizontally with one another.

These strategies define intentions and plans

related to the overall organizational

considerations, such as organizational

effectiveness, and to more specific aspects

of people management, such as; resourcing,

learning and development, reward and

employee relations. Strategic HRM focuses

on actions that differentiate the firm from its

competitors .It is suggested by Hendry and

Pettigrew that it has seven meanings:

A coherent approach to the design and

management of personnel;

Systems based on an employment policy

and workforce strategy;

Matching HRM activities and policies to

some explicit business strategy;

Seeing the people of the organization as

a strategic resource;

Achievement of competitive advantage.

Often underpinned by a ―philosophy

The use of planning

Organizational performance concept;

Campbell‘s theory defines

performance as behavior or action relevant

to the attainment of an organization‘s goals

that can be scaled, that is, measured.

Moreover, job performance is defined as

what one is paid to do, or what one should

be paid to do. The theory states that the

measurement options, be they ratings from a

supervisor, peer, or self, a simulated work

sample, or hard criteria besides being valid,

reliable, and not deficient should be free of

contamination from sources of variation that

are not under the control of the individual




.Situational enhancers or constraints, if not

taken into account in an appraisal, can

contaminate the mean, variance, or both with

regard to an individual‘s performance.

Observation and interpretation hold the key

to the establishment of effective criteria.

Yet, an ongoing problem in appraising

people is the lack of reliability in the

observation of their behavior This

unreliability is largely attributed to well-

known rating errors such as ―first

impressions‖, ―halo‖, and ―similar-to-me‖.

Lifson found that up to one-third of

performance measurement variance is due to

rater differences despite the fact that the

observers had considerable experience in

observing and evaluating people in the

workplace. Lance corroborated this finding.

Experience, however, is not a substitute for

training. To solve the problem regarding

lack of reliability, an observer must be

trained. In this section, training programs

that have been shown to be effective are

described, and the necessity of taking

context into account is explained.

Organizational performance is one of

the most broadly and extensively used

dependent variables in organizational studies

today, and yet, at the same time, it remains

one of the most imprecise and loosely-

defined constructs. In the strategy literature,

the focus of attention on this construct has

been concerned almost entirely with

financial measures of performance.

Conceptually, organizational performance

has been defined as the comparison of the

value produced by a company with the value

owners expected to receive from the

company Ramanujam indicate that a narrow

definition of performance focus on the use

of simple outcome-based financial indicators

that are assumed to reflect the fulfilment of

the economic goals of the firm.


This study was conducted through

the collection and analysis of various

publications on this field. The secondary

source, refer various publications that have

been made in this area about empirical

studies, various academic debates and

analyzes the different findings. These

publications have been published in various

journals, conferences and books.

HRM and performance;

HRM practices are expected to enhance

organizational performance and enable the

organization to gain a competitive

advantage. Such practices are detailed as

follows

Self-managed teams and decentralization

of decision-making as the basic principles

of organizational design.

Comparatively high compensation

contingent on organizational performance.

Reduce status distinctions and barriers,

including dress, language, office

arrangements, and wage differences across

levels.

Extensive sharing of financial and

performance information throughout the

organization. Employment security.

Selective hiring of new personnel.

Extensive training.

Outcomes

Organizational outcomes, such as

productivity, quality, service, efficiencies,

customer satisfaction.

Financial accounting outcomes, such as

profits, sales, return on assets, return on

investment.

Capital market outcomes, such as market

share, stock price, growth

HR-related outcomes, such as turnover,

absenteeism, job satisfaction, commitment.

Advantages;

Performance management strategy

should focus on the development to a

continuous and flexible process involving

managers and all the organization that

operate as a single team. This should

determine how they can best work together

to achieve the required results. This makes it

possible to focus on the planning of future

performance and performance improvements

existing. HRM Strategy provides the basis

for regular dialogue and frequent between

managers and other employees about




performance needs and further development

of the organization. Strategic human

resource management may bring a number

of benefits to the organization.

Participating in strategic planning and

influencing the strategic direction of the

company as an equally entitled member

of top management

Contributing to the goal accomplishment

and the survival of the company,

Supporting and successfully

implementing business strategies of the

company,

Improving the responsiveness and

innovation potential of the company,

Increasing the number of feasible

strategic options available to the

company,

Improving cooperation between the HRM

department and line managers.

Creating and maintaining a competitive

advantage for the company

Finding;

These organizations to strategically

manage their human resources pay attention

in:

a. Recruitment and selection of appropriate

staff;

b. Career Management in the organization;

c. Training and development of employees;

d. Job satisfaction;

e. Creating a dynamic environment;

f. Motivating employees.

In other words, organizational

performance has changed through strategic

management of human resources

management. This makes possible the

achievement of organizational performance

objectives. It also enables the organization to

be competitive. SHRM is a very important

tool that ensures the continuity of the

organization

Conclusion;

Human resources are playing an

important role in achieving these

performance indicators. But before that,

organizations should realize the expectations

required from employees and so the

employees show their skills, be motivated

and behave in the manner required by the

organization to achieve performance.

Strategic HRM is a detailed process for

human resource management throughout the

organization that it‘s integrated with the

organization's overall strategy. It enables the

organization having employees with the

right skills and putting them in positions

according to the level of their qualification

and skills. Different authors have tried to

give different definitions for organizational

performance.

Organizations are trying to create as

much competitive in the market, reaching to

manage their human resources in achieving

organizational performance required. Some

of the goals are cost reduction, achieving

sales levels, increasing the number of

customers, increasing the market percentage,

increasing product quality, innovative

products, improve productivity.

In general, organizational

performance is related to the achievement of

the objectives required by the organization.

The achieving organizational performance is

a result of the behavior of employees in the

organization. Policies and practices of

organizations motivate employees and they

give impact on organizational performance.

Some of these are: human resource planning,

recruitment, selection, training and

development, compensation, performance

management and employee relations. A link

between Strategic HRM and organizational

performance has been developed by author

Michael Armstrong. According to him, the

performance is a function of the Ability +

Motivation + Opportunity. By achieving the

expectations of employees, it will be reached

the performance required by the

organization. Organizations need to consider

human resource as a tool to gain competitive

advantage needed to create appropriate

policies and practices. Also, authority and

responsibility must involve in the entire

organization working as a single team and

not focus only managers. Performance

management strategy should focus on the

development of a continuous and flexible

process.




References; 1. Seth Publication T.Y.B.Com Syllabus

Mumbai University.

2. Human Resource Management

Challenges,

http://www.villanovau.com/human-

resource management-challenges.

3. MHRM Marketing Research Journal

August-2014.

4."A Framework for Human Resources

Management International Civil Service

Commission",

http://icsc.un.org/resources/hrpd/hrm/IC

SC_hrm_eng.pdf

5. International Journal of Scientific &

Technology Research Volume 1 Issue

July 2012. ISSN 2277-8616.

6. - Practical Application of Science Volume

II, Issue 2 (4) / 2014.

7."Introduction to Human Resource

Management and Environment",

Available: http://www.mu.ac.in/

8. Guest, D. E. (2011). Human resource

management and performance: still

searching for some answers. Human

Resource Management Journal, 21 (1),

3-13.

9. Hendry, C., & Pettigrew, A. (1990).

Human resource management: An

agenda for the 1990s. International

Journal of Human Resource

Management, 1, 17-43.

10. HRM Studies. Journal of Management

Studies, 46 (1), 143-155.

11., R., Hollenbeck, J. R., Gerhart, B., and

Wright, P. M. (2007). Fundamentals of

human resource management, (2nd ed).

Boston MA, McGraw Hill.

12. Rogers, E. W., & Wright, P. M. (1998).

Measuring organizational performance

in strategic human resource

management: Problems, prospects, and

performance information markets.

Human Resource Management Review,

8 (3), 311.

13. Venkatraman, N., & Ramanujam, V.

(1986).

14. WWW. Various net Web sites.




CHALLENGES FACED BY BANK EMPLOYEES WITH THE ADVENT OF

INFORMATION TECHNOLOGY: A MODERN OUTLOOK

PROF. AUSARE INDIRARANI YASHWANT

Asst. Professor, DR. D. Y. Patil ACS, College, Pimpri, Pune 411018

Abstract:

With the advent of Information Technology enormous employment opportunities in the banking

sector has been generated. In this paper an attempt has been made to understand the challenges

faced by bank employees with the arrival of computerized system. Technology has sown the

seeds of competition in every sector of the economy & banking sector is no exception to this

event. Global economy will bring in new challenges & opportunities in human resources. The

need of the hour is that management would have to tackle several applications at the entry level

of recruitment. Banks have to be prepared to modify recruitment policy & take responsibility to

correct ethical business practices. The objective of this research is to identify the challenges

faced by the bank employees in the digital economy. Hence the study proposes to emphasize on

effective use of information technology by bank officials & create significant value that will

provide competitive edge. Current economic trends are compelling banking sector to re-focus on

business effectiveness & satisfy the needs of the customers. Therefore this research paper can be

of relevance to bank executives, management & employees to adopt newer ways to improve

business effectiveness. It is therefore a welcome change to be looked at as it would result in

improved productivity in service sector in enormous ways. Study reveals that we directly or

indirectly use computer & IT to improve our quality of life, hence banks should make

modifications with the techno-savvy environment.

Keywords: Information Technology (IT), Internet Banking, Virtual Banking, Digital Economy.

Introduction:

Information Technology has

momentous influence in every field. In order

to remain competitive organizations have to

adopt new practices and new technologies. It

is technology which has modified the

banking businesses. The need of the hour is

to train the bank employees so as to cope up

with this change and acquire new skills. It

has become vital in every field and its

absence can result in lack of knowledge,

poor decisions and ultimately business

failure. Because of technology and

computerized system many delivery

channels have been created. Organizations

which do not invest in technology make

their Employees struggle for information. It

has been witnessed that today‘s customers

expect timely, convenient, quick and

multiple delivery channels. With the

passage of time the attitude of customers are

also changing. Hence only those business

will survive who can fulfill their demands.

And this can be done by adopting

technology. Therefore there is an urgent

need for bank Employees to keep

themselves updated with new set of skills

and technical expertise. This is the highest

challenge for bank employees as they have

to handle various queries raised by

customers and respond to the change.

There is direct relationship between

technology and quality services in banking

industry. The decade of nineties have

witnessed a sea change in the way banking

is done in India today. Technology has made

possible ‗Anywhere and anytime banking

and it is now possible to market financial

services on a global basis. Similarly, it is




important for Bank Executives &

management to provide training to users at

regular intervals. Technology can be fruitful

only if users (Employees) are aware of how

to use it efficiently.

Objectives:

The research paper has three fold objectives:

1. To study new challenges faced by bank

Employees with the advent of IT.

2. To understand innovative business

practices adopted by banks.

3. To give suitable recommendations to

bank officials to implement best work

culture in this competitive environment.


The present study is based on

secondary data. It is descriptive in nature.

Data has been collected from several

Journals, Periodicals, and websites. Various

literature review studies have also been

referred for this research study.

Innovativeness:

This research is an attempt to see

whether technology in banks has any impact

on the recruitment and Employees

operational performance in Banks. Since

banking industry has displayed

multidimensional growth the need of the

hour is to set up informational websites and

speed up the banking transactions. There is

also need for bank employees to change

their method of working. Due to

computerization the employees have no

choice but to accept the change.

Management should plan and train

employees to enhance their performance &

modify their financial system. The main aim

of this paper is to bridge the gap between

existing knowledge of bank employees and

update their skills to match the modern

expectations of customers.

In the days to come, banks are

expected to play a very crucial role to keep

pace with modern technology. Bank officials

should introduce skill inventories and focus

towards TQM viz., quality circles

.Competent employees are required for

modern working system in banks for

survival & growth. Research scholars have

contributed their valuable articles on the

issues related to banking reforms. Yet there

are several areas left untouched &

unexplored.

Relevance of the study:

This study shall be fruitful to the

stakeholders, bank executives, management

& employees at large as they can take vital

decisions and make alterations accordingly

with these valuable suggestions. It shall

result in providing hassle free services.

Challenges faced by bank employees:

Human resource managers in public

sector banks have to cope up with the

environmental changes. With the emergence

of virtual banking competition in market

have increased. Hence human resource

related problems are hampering the growth

and efficiency of financial sectors. Human

resource strategy should be adopted to

motivate, train, recognize, and reward to

improve their optimum capabilities. It is

necessary for policy makers, managers to

develop skill human capital to improve their

internal process. Information Technology is

spreading and has implications in almost

every section of economy including banks.

This is biggest challenge that banks

have to employ Information Technology

Solutions to be ―futuristic‖ and meet the

multifarious challenges of globalization. The

new challenge faced by bank officials is to

educate the customers about cashless

economy, its benefits, safety & easy

accessibility. Thus increasing competition &

technology driven economy has created a

big challenge for traditional operating banks.

Moreover trust factor is the biggest hurdle to

online banking as people hesitate to disclose

their personal information. Banks therefore

require an appropriate mix of human talents

to implement their operational strategies.

Another obstacle is that there is an acute




scarcity of web developers, content

providers & knowledgeable professionals to

route banking transactions through internet.

Innovative business practices adopted by

banks leads to following effects:-

Information technology innovations by

the banking sectors have reduced cost of

labors.

There is universal co-ordination between

head office and branches

Use of technology in banks have reduce

inter- market differentials

Created standardized system of services

to its customers

There has been growth in the form of

ATM‘s as a complementary distribution

channels.

Technology has opened the way for

banks to improve their costs structures.

Banks were able to induced the

customers to change their attitude and

adopt digital e –banking services.

In brief this transformation towards

‗ virtual banking‘ will further require new

IT applications , new managerial practices

and new consumption patterns to remain

stable is financial services and to captured

new strategy.

Analysis of the study:

In view of the above discussion on

this research topic the following have been

evaluated:

Banks have also realized the

importance of computerized system and they

are planning to gear up to have sound

customer services. Some of the banks viz.

Bank of Maharashtra, State bank of India

has formulated long term plans to trigger

the technological invasion.

Thus, software development

activities are provided by banks to ease the

employee to cope up with new working

processes. It has been surveyed that almost

52% customers are moving towards online

banking. Now, banking industry will require

those candidates having analytical &

computer-skills. Top executives should also

take care of safety & security and keep away

from technology risks.

Recommendations:

In the near future the biggest concern for

banks will be to implement best IT

solutions in the compliance area.

They should ensure safety & security to

their customers.

Banks should also create awareness

among the people about cashless

economy & its benefits.

Quality & team building practices should

be designed at work place & contribute to

overcome potential programs.

Human resource professionals should

keep pace with the issues like privacy,

data protection, and authentication.

Also an attempt should be made to set

global standards to operate hassle free

online banking transactions.

Finally it may be suggested that the

employees should have ability to liaison

with individuals & organizations‘.

Ability to identify others special talents

maintain and monitor information system.

Conclusion:-

In conclusion it is agreeable that

nowadays human resource functions are

considered as an essential part of the

management. With the advancement in IT

the organization needs to develop an

enthusiastic, result cantered, and dedicated

work force. Also the four dimensions viz.

people, powers, culture and infrastructure

need to be managed which is essential

foundation for survival and profitability.

Overall the Indian banking sector is

healthier today due to arrival of IT

revolution. Hence with this transformation

bank employees must continuously seek

new skills & cope up with the competitive

work culture. To sum up speed & efficiency

are the new mantras expected by today‘s

techno savvy customers.




References:

1. Dhiraj Sharma, Foundations of IT, Excel

Books, New Delhi, 2008.

2. The IUP Journal of IT, IUP Publications

Vol. XIII No.3, Sept 2017

3. V. Rajaram, Introduction to IT, 2nd

Edition, Feb 2014, 2nd

Edition.

4. Jawad Abbas, Impact of Technology on

Performance of Employees, World

Applied Science Journal, 2014.

5. Jim Davis, Information Revolution,

Wiley Pub. 2006.

6. Girish Rann, Global HRM, 2009,

Rajdhani Printers, Delhi.




GST (ONE NATION ONE TAX)...A STUDY OF IMPLEMENTATION AND

CHALLENGES

DR. D.D.BALSARAF

Principal, Indrayani College, Talegaon,

Pune

SHRUTI GANPULE

Assistant Professor, Pratibha College of

Commerce and Computer Studies, Chichwad

Abstract:

"Goods and Services Tax" is a comprehensive indirect tax on manufacture, sale and

consumption of goods and services throughout India, to replace previous taxes levied by the

Central and State governments. Goods and services tax is levied and collected at each stage of

sale or purchase of goods or services based on the input tax credit method. The introduction of

Goods and Services Tax (GST) is a significant step in the reform of indirect taxation in India.

Amalgamation of several Central and State taxes into a single tax is expected to mitigate

cascading or double taxation, facilitating a common national market. The simplicity of the tax

would lead to easier administration and enforcement. GST is being enforced as CGST, SGST and

IGST. An attempt is made to study the ground reality of the slogan „One Nation One Tax‟.

Key words: GST, CGST, SGST, IGST

Introduction:

Origin of the concept: During 18th

Century a German Economist conceived the

idea of Value Added Tax (VAT) or

Harmonized Sales Tax (HST). He thought of a

sales tax on goods which would not affect the

cost of manufacture or distribution but would

be collected on the final price charged to the

consumer. The tax was finally adopted by

France in 1954. In initial years it was imposed

on large businesses but after the due course of

the time, it was imposed to include all

business sectors.

Indirect Tax Regime in India:

Indirect tax is a type of tax where the

incidence and impact of taxation does not fall

on the same entity. In the case of indirect tax,

the burden of tax can be shifted by the

taxpayer to someone else. Indirect tax has the

effect to raising the price of the products on

which they are imposed. Customs duty,

central excise, service tax and value added tax

are examples of indirect tax. The Indian

indirect tax regime is characterized by

multiple taxes, such as excise duty, Customs

duty, VAT, Central sales tax, service tax. It

also includes local levies, such as octroi and

entry tax. Historically, none of these taxes

were creditable against one another. A part

of the Customs duty and excise were

creditable. Recently, service tax has also been

brought into the creditable category. However,

VAT, Central sales tax and octroi were

entirely non-creditable taxes. In India certain

taxes are levied by the Central Government

and some are levied by the State

Governments. The distribution of power to

levy these taxes is clear and unambiguous. As

a result, over the period, the Central and the

State Governments are rigorously trying to

expand their respective tax regime.




Taxes subsumed by GST in India

Central Level State Level

Central Excise duty State Value Added Tax

Duties of Excise (Medicinal and Toilet

Preparations)

Entertainment Tax

Additional Excise Duty Central Sales Tax (levied by Centre and

collected by State)

Service Tax Octroi and Entry Tax

Additional Customs Duty (Countervailing

Duty)

Purchase Tax

Special Additional Duty of Customs Luxury Tax

Cesses and Surcharges Taxes on lottery, betting and gambling

Taxes on advertisement

State Cesses and Surcharges.

Source: www.cbec.gov.in

Goods and Service Tax:

The Goods and Services Tax is meant to

be a unified indirect tax across the country on

products and services. In the current system in

India, tax is levied at each stage separately, by

the Centre and the State, at varying rates, on

the full value of the goods. But under the

Goods and Services Tax system that is set to

be introduced, tax will be levied only on the

value added at each stage. It is a single tax

(collected at multiple points) with a full set-off

for taxes paid earlier in the value chain. Thus,

the final consumer will bear only the GST

charged by the last dealer in the supply chain

with set-off benefits at all the previous stages.


The research paper is based on

extensive study of available secondary data.

The researcher has used exploratory research

technique. The study is based on review of

literature available in respective journals,

annual reports, newspapers and magazines,

research papers published by eminent research

scholars.

Literature Review:

Girish Garg (2014) says GST will create a

single unified Indian market to make the

economy stronger. GST is set to integrate

state economies and boost overall growth.

According to Lourdunathan F. (2017) GST

will provide relief to producers and consumers

by providing wide and comprehensive

coverage of input tax credit set off, service tax

set off and subsuming the several taxes.

Efficient formulation of GST will lead to

resource and revenue growth for both center

and states majorly through widening of the tax

base and improvement in tax compliance.

Arpit Shailesh and Dr. Taruna (2016)

concluded that GST is helpful for the

development of Indian economy as well as it

will be very much helpful in improving the

GDP of the country more than two percent.

The GST TAX reforms would impact national

economy, international trade, firms and

consumers. In the opinion of Sukhram Mujale

(2017) GST can also be used as an efficient

tool for fiscal policy management if

implemented successfully due to nationwide

same tax. Implementation of GST requires

undivided efforts of all stakeholders whether

government both central state, industries and

consumers. According to Dr. Mahesh Daru,

introduction of GST is only the next stage of

reform. One should keep expectations at a

realistic level. Monika Sherawa and Upasana

Pande (2015) mention that consumption and

production of goods and services is

undoubtedly increasing and because of

multiplicity of taxes in current tax regime

administration complexities and compliance




cost is also accelerating. A simplified, user

friendly and transparent tax system was

required which can be fulfilled by

implementation of GST. GST will give India a

world class tax system by grabbing different

treatment to manufacturing sector. According

Dr.Atul Bansal, under GST, the taxation

burden will be divided equally between

manufacturing and services, through a lower

tax rate by iccreasing the tax base and

minimizing competition. S. Muthupandi and

Dr. A Joseph Xavier undertook a study of

awareness of GST among college students.

They concluded that providing adequate and

relevant fundamental information about GST

is necessary to make them better understand

the general principle of GST and also conform

to regulation.

Goods and Service Tax

The Goods and Services Tax is meant

to be a unified indirect tax across the country

on products and services. In the current

system in India, tax is levied at each stage

separately, by the Centre and the State, at

varying rates, on the full value of the goods.

But under the Goods and Services Tax system

that is set to be introduced, tax will be levied

only on the value added at each stage. It is a

single tax (collected at multiple points) with a

full set-off for taxes paid earlier in the value

chain. Thus, the final consumer will bear only

the GST charged by the last dealer in the

supply chain with set-off benefits at all the

previous stages.

Features of GST:

This tax is a multi- stage and destination

based tax that will be levied on every value

addition.

The GST has a system called input tax

credit, by which sellers can claim the tax that

has already paid. This will reduce the final

liability at the consumers‘ end. This step is

taken to overcome cascading effect of

CENVAT.

The GST shall have two components: one

levied by the Centre (referred to as Central

GST), and the other levied by the States

(referred to as State GST). Rates for

Central GST and State GST would be

approved appropriately, reflecting revenue

considerations and acceptability.

Integrated Goods and Service Tax (IGST)

is a tax levied on all inter state supplies of

goods and / or services. IGST will be

applicable in both cases of import into

India and export from India.

The three types of tax structure is

implemented to help tax payers take the

credit against each other, thus ensuring

‗One Nation, One Tax‘.

Input tax Credit is available which reduces

the taxes paid on inputs from taxes to be

paid on output. When any supply of

services or goods are supplied to a taxable

person, the GST charged is called as Input

Tax.

There are four slabs of GST. Goods and

services are taxed at 5 percent, 12 percent,

18 percent and 28 percent.

Benefits of GST :

Easy compliance:

A robust and comprehensive IT system is the

foundation of the GST regime in India. All

services such as registrations, returns, and

payments would be available to the taxpayers

online, which will make compliance easy and

transparent. GST is introduced to ensure

indirect tax rates and structures to remain

common across the country. This will result in

increasing certainty and ease of doing

business. Thus, GST would make doing

business in the country tax-neutral,

irrespective of the choice of place of doing

business.

Removal of cascading:

The system of input tax-credits

throughout the value-chain, and across

boundaries of States, would ensure that there

is minimal cascading of taxes. This would




reduce hidden costs of doing business. This

will automatically result in improving

competitiveness among the business.

Boost to manufacturers and exporters:

The subsuming of major Central and

State taxes in GST, complete and

comprehensive set-off of input goods and

services, and phasing out of Central Sales Tax

(CST) would reduce the cost of locally

manufactured goods and services. This will

increase the competitiveness of Indian goods

and services in the international market and

give boost to Indian exports. It‘s a better

opportunity to Indian exporters to compete

globally.

Ultimate benefit to Consumers:

The multiple indirect taxes levied by

Central and the state governments are

abolished and single tax rate throughout the

country is introduced in the form of GST.

Cascading effect has come to an end. It will

result in reduction of the prices of goods and

services at the hands of the consumers. There

will be only one tax from the manufacturer to

the consumer which will improve

transparency and reduce overall tax burden.

Limitations of GST

Too many Tax Rates:

Most of the countries which have

implemented GST have single GST rate. Only

a few have two. In India there are four slabs of

GST 5 percent, 12 percent, 18 percent and 28

percent.

Compliance becoming Costly and Tedious:

The returns of GST are to be filed

online. There seems to be lot of confusion in

filing such returns. The question arises

because of limited computer literacy,

availability of internet connection, and poor

idea about filing returns. Small scale business

enterprises may suffer due to poor or

interrupted internet connectivity, limited

computer literacy and unavailability of expert

chartered accountants.

Possibility of Tax Evasion:

The threshold of GST is businesses

with more than Rs. 20 lakh annual turnover.

This means businesses with less than Rs. 20

lakhs turnover are exempted from GST. It

creates a loophole which may result in a

possibility for mushrooming of dummy small

scale companies that remain outside the tax

system. So a possibility of tax evasion cannot

be ruled out.

Goods and Services beyond the scope of

GST:

There are certain services and goods

which are not covered under GST. To name a

few, petroleum products, liquor, Services of

employee to his employer, court or tribunal

services, duties performed by Members of

Parliament, State Legislatures, Panchayats,

Municipal or other local authorities, services

of funeral, burial or crematorium, sale of land

and building, actionable claims (other than

lottery, betting and gambling).

Six Months of Implementation of GST:

The new GST tax regime came to

force on JULY 1, 2017. Since then it has been

one of the most rigorously discussed subject

across the country. The implementation of

GST regime involved merging of all indirect

taxes into a single tax. It involved a conscious

effort to not hurt any sector that falls under the

ambit of GST. However the implementation

was not smooth. It gave rise to certain issues

which are as follows.

12 percent GST imposed on sanitary

napkins. Medical professionals and women

across the country protested against this

decision.

GST of 28 percent was imposed on all

handicraft products. Earlier it was just 12

percent before GST. The handicraft workers

agitated that it was not possible for them to

procure raw material at such a high tax rate

and still keep their business profitable.




A lot of confusion was there in filing GST

tax returns. Even the qualified, experienced

chartered accountants were in trouble. It

resulted in fall in government‘s tax revenue

for the month of October, 2017 which was

near about Rs. 86,346 crore.

In October 2017, the GST Council revised

the rates of 27 products. A group of

ministers were appointed to look into the

issues faced by these businesses.

The council further slashed rates of GST on

178 products in November 2017. It

significantly brought down the burden on

various sectors. Daily consumption units

like chocolates, chewing gums, beauty

products became cheaper. Restaurants also

became cheaper to go.

The Government also extended the

deadlines for filing tax returns so that tax

payers are able to file their returns on time

and without confusion. The GST council

announced in November 2017 and had

allowed businesses with turnover of up to

Rs. 1.5 crore to file final returns GSTR-1

quarterly.

Recently GST council has announced that

businesses with turnover of more than Rs.

1.5 crore, GSTR-1 has to be filed for the

period of July – November by January

10,2018. Earlier it was December 31, 2017.

The GST provision requiring transporters to

carry on an electronic way bill (e-way bill)

when moving goods between states will be

implemented from February 1 to check

rampant tax evasion and boost revenues by

up to 20 percent.

Conclusion:

Due to complexities involved like

negotiations between 29 states, 2 Union

Territories with legislature and the Central

Government, it took considerable time to

finalize the structure and operational aspects

of the tax. The goods and services tax (GST)

Bill was passed unanimously in the Parliament

in August, 2016 reflecting cooperative fiscal

federalism in the pursuit of reforms. After

ratification by a majority of states and assent

of the President, it was enacted as Constitution

(One Hundred and First Amendment) Act,

2016. Any change comes with positive and

negative reactions. GST being a major tax

reform in India is not exception to this. GST

will definitely have a positive impact on

various sectors and industry. GST is likely to

improve tax collections and boost India‘s

economic development by breaking tax

barriers between states and integrate India

through a uniform tax rate. Speaking on the

concluding day of the 11th Global Doctors‘

Summit at Kolkata, India‘s Vice President

Venkaiah Naidu said, ― The Goods and

Service Tax (GST) is going to change India‘s

economy though initially it might have caused

pain. As rightly put up by the finance minister

Arun Jaitley ‗The introduction of the Goods

and Service Tax has provided a significant

opportunity to improve growth momentum by

reducing barriers to trade, business and related

economic activities‘.

References:

https:// www.ndtv.com/business/economic-

growth- slow- downin 2016-17-says-arun-

jaitely-1793526

https://www.google.co.in/amp/s/www.forbe

s.co

www.deccanchronicle.com

https://economictimes.indiatimes.com

https://timesofindia.indiatimes.com

http://www.taxmanagementindia.com/visito

r/detail_rss_feed.asp?ID=1226


http://www.thehindubusinessline.com/toda

yspaper/tp-others/tp-

taxation/article2286103.ece

http://www.moneycontrol.com/newstopic/g

st/

Garg, Girish (2014), ―Basic Concepts and

Features of Good and Service Tax in

India‖,

http://www.ndtv.com/business/economic-growth-%20slow-%20downin%202016-17-says-arun-jaitely-1793526



https://www.google.co.in/amp/s/www.forbes.co

https://www.google.co.in/amp/s/www.forbes.co

http://www.deccanchronicle.com/

https://economictimes.indiatimes.com/

https://timesofindia.indiatimes.com/




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