WAT-PI Basics

Written Ability Test (WAT) is a pen and paper-based test that checks a candidate's quick thinking skills
and his/her ability to articulate in the given time. The candidates are given one or more topics and they
have to write an essay or short passage on the topic of their choice. The time duration designated for
WAT varies for different IIMs. However, the common consensus is that a minimum duration of 15
minutes is provided to complete the test.
The topics given in WAT can vary from social to political to general.

In most of the B-schools, WAT is not an elimination round and is usually followed by a personal interview
round irrespective of how well someone performed in WAT. Generally, the WAT and PI round has almost
50% to 70% weightage in the final composite score with the rest going to other credentials like academic
excellence, work experience, and CAT score.
Tips to write an impressive Essay in WAT?

One of the strategies that can be used to ace the Written Ability Test (WAT) is to formulate the ideas
clearly. The essay should have a clearly defined beginning, middle, and end.

 The beginning should comprise of the principal argument and should aim at introducing the
topic.
 The middle part of the essay should be devoted to explaining candidate’s standpoint on the topic.
This should also have supporting arguments. Bullets can be used to list out the arguments.
 The last part of the essay is the conclusion. Here the candidate needs to wind up the ideas and
provide a concluding statement.
In WAT, the ability to present thoughts in a structured manner, awareness of the topic and ability to
form original opinions within the limited time given, matters the most. The candidates should give
precedence to grammar, content, and spelling over flowery language.
Few WAT topics to prepare:

 The recent financial crisis highlights the perils of Capitalism

 Women's Reservation Bill
 Banning politicians with criminal records from contesting elections is against their right
 India versus Bharat: a divided nation
 Union Budget is a useless exercise and activities like recession puts it off-track
 Essential services like water, electricity should not be privatized
 Is disinvestment in profit-making PSU's advisable?
 Should Petroleum Subsidy go away?
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 Corporate Social Responsibility
 Discuss the role of Public Private Partnership in India's Economic Growth
 Voting should be made compulsory
 IIM should make one year of social service compulsory for all students
 Should there be reservation for women in MBA colleges?
 Bollywood is capitalizing on people with disabilities
 In India, mass mobilization can only be achieved through religion
 IPL is a death knell to Indian cricket
 Legalizing doping in sports in modern times
 Cricket is cannibalizing the space of other sports in India
 The greatest tennis star of all time
 Pink is the new Blue
 Sometimes wars are required to ensure peace
 An eye for eye will make the whole world blind
 World is run by conspiracy. People run by lofty ideas
 Effects of corruption; In today’s world, business and ethics don’t go hand in hand
 Foreign coaches are a waste of money in Indian sports.
 Advertising is legalized lying
 Family managed business vs. professionally run organizations
 Financial Crisis in Europe
 Explain the popularity of reality TV shows and television game shows
 Food security act is because of inefficiency of public distribution system
 Is reading no more a leisure thing? How has the advancement of technology affected the concept
of leisure?
 Is privatization in education sector an only solution to improve the quality of higher education in
India?
 Rise in the number of terrorist activities;
 Are there any other reasons than Tourism why the historical places should be preserved and
protected?

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Personal Interview

Few questions for personal interview:

 Tell me something about yourself?

 Where do you come from? Some specialties of your city?
 Give me a brief understanding of your family background?
 Talk about your strengths and weaknesses?
 Describe your average day?
 Talk about some landmark learning events in your life?
 Why do you want to pursue MBA?
 Describe yourself as a person?
 What kind of person are you essentially: introvert or extrovert?
 What are the top three attributes of a successful professional?
 Which specialization would you want to get in?
 What is your USP as an individual?
 Name any three achievements of your life?
 What are some overriding interests in your life?
 Tell me something that is not on your CV?
 What is the biggest regret in your life?
 Where do you see yourself in 5 years?
 Tell me a time in your life when you failed and how did you overcome it?

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How to answer the “tell me something about yourself” question?

 Approximate duration of this answer: 50-60 seconds.

 You can begin the answer as My name is ________. I hail from ________.
 Give a brief about your family background. This can include the profession of your father and
mother and your siblings.
 Then you can mention your educational qualifications in the descending order starting from
graduation.
 Don’t mention the names of your schools but mention the board.
 Then you can mention about your work experience and your roles and responsibilities in the
company.
 Key learnings in your organizational role.
 Further, you can mention about the internships and graduation projects.
 You can give a brief about your interests and hobbies.
 Finally, you can mention your USP.

Guesstimate Questions:

 What is the approximate number of i-phone users in India?

 How many cups of coffee are consumed on a particular day across all IIMs?
 What is the number of cars running on road at this time in India?
 What is the annual revenue of diaper industry in India?
 How many watts of electricity is consumed by streetlights in Delhi?
 What is the probability that you will meet your friend in Delhi metro on a random day?
 Estimate the number of cities in Europe
 How many calories are in your local grocery store?
 Roughly, how many spoken languages exist in the world?

 How many people are connected to the internet right now?

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 Basic structure of Operation

Operations

Creation, Production, Delivery, and Service of the goods/ services provided by an organization
through the value-adding transformation of a set of inputs into a set of outputs for internal/ external
customers.”

The intention of Value chain is to create a competitive advantage and that of operation is to complete
the transformation.
Operations Management
Managing the activities and resources required to design, perform and improve the operations carried
out by an organization

LAYOUT
Layout means how the transformed resources are positioned relative to each other and how the
various tasks are allocated to these transforming resources. Layout decisions include the best
placement of machines (in production plants), offices and desks (in office settings), or service centers
(in service settings like hospitals or supermarkets).

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Types of Layout
1. Assembly Line Layout: Interchangeable or semi-finished parts move forward on a moving belt
(called Assembly Line) and parts are added in sequence at workstations until the final product is
assembled. This layout is most common in automobile manufacturing industry.

Image Source: slideshare.net

2. Fixed Layout: In a Fixed-position layout, the main body/project is fixed at one place whereas
workers and equipment come to that place and complete the product/project. This layout is
common in industries where the final product is very heavy and large and therefore difficult to
move around. Example: Ship-building plants, Aircraft assembly plants.

3. Hybrid Layout: Hybrid layout is a combination of Product-based, Process-based and Fixed-

position layouts. This type of layout provides more flexibility depending on changing needs of
different manufacturing facilities.
4. Office Layout: In offices, the efficient layout is one where the workers, their equipment, and
desks are grouped and placed in such a way so as to ensure comfort, safety and effective
movement of information.
5. Retail Layout: In Retail layout, the priority is to expose the customer to as many products as
possible, as sales and profitability vary directly with customer exposure to products. Various
products in a store are allocated space based on this principle.

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Product Life Cycle

Introduction, Growth, Maturity, and Decline are four typical stages of Product Life Cycle, through which
a new product progresses.

 Introduction:

This is the most expensive stage of a product. In this stage, the company has to invest in R&D, Marketing,
and Launching of the product. Market share is also small at this stage.

 Growth:

In growth stage, the sales of the product are increasing at their fastest rate. It is a stage of profit and the
company can invest more money in promotional activities.

 Maturity:

At this stage due to new competitors in the market or saturation, the rate of growth of the product slows
down. To maintain the market share company needs to invest in promotional activities.

 Decline:

At this stage, the sales of product begin to fall. This stage is inevitable, and companies should start
looking for other options to make a profit.

Reference: http://productlifecyclestages.com/

Figure 1: Product Life Cycle Stages

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Product - Process Matrix
The product-process matrix is a model that is used to demonstrate the combination of a product's (or
product group's) volume and variety characteristics, and the nature of the processes that make it.

Process Examples

Project Process Restaurants, Hospitals, Construction of buildings

Job Process Bakery that bakes customized cakes, Programmer coding custom
websites

Batch Process Bakery with different types of cakes

Line Process Assembly line of manufacturing plants

Continuous Process Chemical plants, refineries

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Forecasting
Forecasting, in layman’s term, means predicting future events. In Business world, Forecasting is a
technique of predicting future events (e.g. future sales) based on past recorded data (e.g. sales in
previous periods), using mathematical models. Forecasting is the basis of almost all business activities
and is usually classified into three categories, based the time horizon that it covers.

1. Short-range forecast: for less than 3 months.

2. Medium-range forecast: from 3 months to 3 years.
3. Long-range forecast: for more than 3 years.
Lean Manufacturing:

Lean is a method that improves processes through continuous improvement (kaizen) and elimination of
waste. Lean manufacturing offers companies a proven method to reduce costs, eliminate waste,
increase productivity, maintain high levels of quality and still make a profit. The foundation of Lean
Manufacturing is leveling of production, known as Heijunka. Simply put, the workloads each day is level.
Building upon that foundation are two main pillars, which represent "Just-in-time production" and
"Automation with a human touch". Just-in-time production means only product required is produced.
Automation with a human touch signifies that machines are equipped in such a way that they can detect
small errors when processing and have the ability to stop the process.
Just in Time
Just in Time is the methodology used in the production system in which items are produced and
delivered without making inventory surplus in stock or go down. The objective of JIT is to avoid the waste
in overproduction, waiting and excess inventory. Toyota Company is the first one who adopted this JIT
technique.

Waste in management
The elimination of waste is the primary goal of lean management. Toyota defined three broad types of
waste: Muda(waste), muri(overburden) and mura(unevenness).
Types of waste:
Waste from Manufacturing before products are required or more than required
overproduction
Waste of waiting time Waste of the idle time during production
Transportation waste Waste arising from movement of products in between processes
Inventory waste Products in production and completed stock incurring storage cost
Processing waste Waste of excess time than required going in the process
Waste of motion Excess movement than required during the process
Waste from product Production defects lead to rework and waste of resources
defects

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Mura – Can result from fluctuation in customer demand, process times per product or variation of cycle
times for different operators and can be reduced by creating a more open supply chain and
standardization of the processes.

Muri- Happens when too much waste is removed or unevenness occurs as the machines are operated
more than the 100%. Can be avoided if machines are optimized and processes are standardized.
Cycle time
The period required to complete one cycle of an operation; or to complete a function, job, or task from
start to finish. Cycle time is used in differentiating total duration of a process from its runtime.

Setup time
Period required to prepare a device, machine, process, or system for it to be ready to function or
accept a job

Bottleneck

Department, facility, machine, or resource already working at its full capacity and which, therefore,
cannot handle any additional demand placed on it. Also called critical resource, a bottleneck limits the
throughput of associated resources.

Question: What are the ways of unblocking your bottleneck?

Solution: Increase the efficiency of the bottleneck step - Reducing the setup time, researching better
processes that process the material faster or improves reliability.
Decrease input to the bottleneck step – Adding a parallel process of the same activity reduces the input
to a single activity and also doubles the output.

Throughput time
The period required for a material, part, or subassembly to pass through the manufacturing process.

Example: If a component has a process time of 2 Hours, inspection time of 30 minutes, move time is 15
minutes, wait time of 40 minutes. What will be the Throughput time?

Solution: Since throughput time is the sum of process time, inspection time, move time and wait time.
Throughput time = Process time + inspection time + move time + wait time
= 120 + 30 + 15 + 40
= 205 minutes
Thus, the throughput time will be 205 minutes.

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Scheduling
Scheduling means planning, allocating and controlling resources (plant machinery, raw materials, and
human resources) to meet the required demand/workload.
Push Scheduling: In Push Scheduling, production target is driven by the forecast. If the forecast says that
customer demand for a good will be 50,000 units for a certain period, the manufacturing plant sets a
target of 50,000 units and plans the raw materials purchase, allocation, and resource allocation
accordingly. Once units are produced, they are stored in the inventory before distribution in the market.
An example of a push system is Materials Requirements Planning or MRP. MRP combines the
calculations for financial, operations and logistics planning. It is a computer-based information system
which controls scheduling and ordering. Its purpose is to make sure raw goods and materials needed for
production are available when they are needed.

Pull Scheduling: In Pull Scheduling, the production starts only after the order is placed by the customer.
After the order is placed, an efficient supply chain ensures just-in-time delivery of raw materials, the
resources are allocated and production runs only to produce the required number of units. No additional
inventory is incurred in Pull Scheduling.
An example of a pull inventory control system is the just-in-time, or JIT system. The goal is to keep
inventory levels to a minimum by only having enough inventory, not more or less, to meet customer
demand. The JIT system eliminates waste by reducing the amount of storage space needed for inventory
and the costs of storing goods.
Six Sigma
Six Sigma (6σ) is a set of techniques and tools for process improvement. It helps to effectively solve the
problem and reduces the defective product or services provided. In six sigma 99.99% of the products
manufactured are statistically expected to be free of defects (3.4 defects per million). Six Sigma was
introduced by an engineer Bill Smith working in Motorola in 1986 and Jack Welch made it central to his
business strategy at general electric in 1995.

The figure depicts a six-sigma green belt. Green belts typically complete 5 to 10 days training, must pass
a written examination, and lead one project to certify.

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Kaizen
“Kaizen” is a Japanese word which means “improvement” or “change for the better”. Kaizen is defined
as a continuous effort by each and every employee (from the CEO to field staff) to ensure the
improvement of all processes and systems of a particular organization.
The cycle of kaizen activity can be defined as: "Plan → Do → Check → Act"
Five S of Kaizen

5S is the name of a workplace organization method that describes how to organize a work space for
efficiency and effectiveness by identifying and storing the items used, maintaining the area and items,
and sustaining the new order.

5S Meaning
SEIRI Sort
SEITION Stabilize
SEISO Shine
SEIKETSU-SEIKETSU Standardize
SHITSUKE Sustain

Project management
The application of knowledge, skills, tools, and techniques to project activities to meet the project
requirements

Project management knowledge draws on ten areas:

1. Integration 6. Procurement
2. Scope 7. Human resources
3. Time 8. Communications
4. Cost 9. Risk management
5. Quality 10. Stakeholder management

Total Quality Management

TQM is a management philosophy, which views the organization as a collection of processes. It always
put the customer in the center and seeks to integrate all organizational functions (marketing, finance,
design, engineering, and production, customer service, etc.) in order to understand and achieve
customer’s needs.

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Critical Success Factors & Tools:

There is no single perfect way to implement TQM. Each organization has to adopt a customized approach
based on its culture, history, working environment, and the industry it is in. However, some common
traits of companies successfully implemented TQM are,

1. Leadership 2. Customer Focus

3. Continuous Improvement 4. Mistake Proofing
5. Taguchi Method 6. Six Sigma
7. Bench Marking 8. Employee Involvement
Toyota Motor is one of the companies that successfully implemented TQM approach:

In relation to TQM, Toyota’s approach:

1. Put the customer first.

2. Continuous Improvement (Kaizen): They continually improve their products.
3. Total Participation: they encouraged all employees to take participation and to be involved in
making an effective contribution towards the development of the company and the
achievements of the subjective.

PERT

PERT stands for Program evaluation and review technique. It is a tool in a graphical presentation to
make a schedule of a project, showing the sequence of tasks. It helps decide which tasks can be
performed at same time or different time

CPM

It is a technique used in project management which analyses flexibility in scheduling amount i.e.
finding the timings of tasks and prioritize them. It is a method of project planning consisting of a
number of well-defined and clearly recognizable activities.

PERT
1 project management technique, whereby
organizing, planning, scheduling,
coordinating and controlling of uncertain
activities are done.
CPM
statistical technique of project
management in which planning,
scheduling, organizing activities
take place.

2 the technique of planning and control of
time.
3 uses probabilistic model.
4 best suited for a high precision time
estimate
method to control costs and time.
deterministic model is used.
appropriate for a reasonable time
estimate.

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Inventory

Inventory is one of the most important assets of a business. There are three components of inventory:

1. Raw Materials: The basic substance that is used as an input to produce finished goods.

Example: Crude Oil held by refineries, etc.

2. Work-in-Process Products: Partially finished goods that are being transformed into finished goods
during manufacturing.

Example: Half - assembled airliner, etc.

3. Finished Goods: The products, which have been through the different process and now ready to sell.

Example: Completed airliners, Cars, etc.

Inventory Management:

Inventory management forecasts and strategies inventory system. The right amount of inventory at right
time is very necessary for a company to meet market demand, and to minimize the cost.

Material Requirement Planning

Material Requirements Planning (MRP) is a computer-based production planning and inventory control
system. MRP is concerned with both production scheduling and inventory control. MRP systems attempt
to keep adequate inventory levels to assure that required materials are available when needed. An MRP
system is intended to simultaneously meet three objectives:
● Ensure materials are available for production and products are available for delivery to
customers.
● Maintain the lowest possible material and product levels in store.
● Plan manufacturing activities, delivery schedules and purchasing activities.
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Aggregate Planning

Aggregate planning, kindly used by marketing strategist, is a process of analyzing, developing,

maintaining a schedule of the overall process of organization. It does an aggregate plan for the next
production process in advance. The aggregate plan generally includes customer database, inventory
stock level, sales forecast of production level. The primary objective of Aggregate planning is to minimize
the cost of operation and gives the idea to the management as to what quantity of raw materials and
other resources are needed to be procured. In simple words, Aggregate planning is an attempt to
balance capacity and demand in such a way that cost is minimized.

There are two pure strategies available to the aggregate planner, choose to utilize one of the pure
strategies in isolation
Level strategy
A level strategy’s aim to produce an aggregate plan that maintains a steady production rate and/or a
steady employment level. In order to satisfy changes in customer demand, the firm must raise or lower
inventory levels in anticipation of increased or decreased levels of forecast demand. The firm maintains
a level workforce and a steady rate of output when demand is somewhat low
chase strategy
A chase strategy includes the amount of hiring, firing or laying off of employees; insecure and unhappy
employees problems with labor unions; and erratic utilization of plant and equipment.

Supply Chain Management

Supply chain management (SCM) is the active management of supply chain activities to maximize
customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the
supply chain firms to develop and run supply chains in the most effective & efficient ways possible.
Supply Chain Management (SCM) mainly consists of a set of approaches to efficiently integrate the flow
of materials, finances, and information from suppliers, manufacturers, wholesalers, distributors,
retailers to the final customer, and back again.
Benefits of SCM:

 Lower Costs
 Improved collaboration
 Improving cycle times
 Response to Conflict

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 Human Resource
Organisational Behaviour:
Organizational behavior or organizational behavior is "the study of human behavior in
organizational settings, the interface between human behavior and the organization, and the
organization itself".
The Big Five Personality Traits

The "big five" are broad categories of personality traits. While there is a significant body of
literature supporting this five-factor model of personality, researchers don't always agree on the exact
labels for each dimension.

You might find it helpful to use the acronym OCEAN (openness, conscientiousness, extraversion,
agreeableness, and neuroticism) when trying to remember the big five traits.

Openness

This trait features characteristics such as imagination and insight, and those high in this trait also tend
to have a broad range of interests. People who are high in this trait tend to be more adventurous
and creative. People low in this trait are often much more traditional and may struggle with abstract
thinking.

Conscientiousness

Standard features of this dimension include high levels of thoughtfulness, with good impulse control and
goal-directed behaviors. Highly conscientiousness tends to be organized and mindful of details.

Extraversion

Extraversion is characterized by excitability, sociability, talkativeness, assertiveness, and high amounts

of emotional expressiveness. People who are high in extraversion are outgoing and tend to gain energy
in social situations. People who are low in extraversion (or introverted) tend to be more reserved and
have to expend energy in social settings.

Agreeableness

This personality dimension includes attributes such as trust, altruism, kindness, affection, and
other prosocial behaviors. People who are high in agreeableness tend to be more cooperative while
those low in this trait tend to be more competitive and even manipulative.

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Neuroticism

Neuroticism is a trait characterized by sadness, moodiness, and emotional instability. Individuals who
are high in this trait tend to experience mood swings, anxiety, irritability, and sadness. Those low in this
trait tend to be more stable and emotionally resilient.

Motivation
Motivation is defined as the process that initiates, guides, and maintains goal-oriented
behaviors. Motivation is what causes you to act, whether it is getting a glass of water to reduce thirst or
reading a book to gain knowledge.
Theories of Motivation:
Here are the few important theories of motivation that are most popular in the field of organizational
behavior:
Maslow's hierarchy of needs
Maslow's hierarchy of needs is a motivational theory
in psychology comprising a five-tier model of human
needs, often depicted as hierarchical levels within a
pyramid.
Maslow stated that people are motivated to achieve
certain needs and that some needs take precedence
over others. Our most basic need is for physical
survival, and this will be the first thing that motivates
our behavior. Once that level is fulfilled the next level
up is what motivates us, and so on.

The hierarchy of needs five-stage model includes:

1. Biological and physiological needs - air, food, drink, shelter, warmth, sex, sleep.
2. Safety needs - protection from elements, security, order, law, stability, freedom from fear.
3. Love and belongingness needs - friendship, intimacy, trust, and acceptance, receiving and giving
affection and love. Affiliating, being part of a group (family, friends, work).
4. Esteem needs - which Maslow classified into two categories: (I) esteem for oneself (dignity,
achievement, mastery, independence) and (ii) the desire for reputation or respect from others (e.g.,
status, prestige). Maslow indicated that the need for respect or reputation is most important for children
and adolescents and precedes real self-esteem or dignity.
5. Self-actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and
peak experiences. A desire “to become everything one is capable of becoming”.

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E.R.G. Theory
Clayton P. Alderfer's ERG theory from 1969 condenses Maslow's five human needs into three
categories: Existence, Relatedness, and Growth.

1. Existence Needs: Include all material and physiological desires (e.g., food, water, air, clothing, safety,
physical love, and affection). Maslow's first two levels.
2. Relatedness Needs: Encompass social and external esteem; relationships with significant others like
family, friends, co-workers, and employers. This also means to be recognized and feel secure as part of
a group or family. Maslow's third and fourth levels.
3. Growth Needs: Internal esteem and self-actualization; these impel a person to make creative or
productive effects on himself and the environment (e.g., to progress toward one's ideal self). Maslow's
fourth and fifth levels. This includes desires to be creative and productive and to complete meaningful
tasks.

Leadership
The word "leadership" can bring to mind a variety of images. For example:

 A political leader, pursuing a passionate, personal cause.

 An explorer, cutting a path through the jungle for the rest of his group to follow.

 An executive, developing her company's strategy to beat the competition.

Leaders help themselves and others to do the right things. They set direction, build an inspiring vision,
and create something new. Leadership is about mapping out where you need to go to "win" as a team
or an organization; and it is dynamic, exciting, and inspiring.

Different Types of Power

1. Coercive Power- This kind of power involves the usage of threat to make people do what one
desires. In the organizational setup, it translates into threatening someone with transfer, firing,
demotions etc. it basically forces people to submit to one’s demand for the fear of losing
something.
2. Reward Power- As the name suggests, this type of power uses rewards, perks, new projects or
training opportunities, better roles and monetary benefits to influence people.
3. Legitimate Power- This power emanates from an official position held by someone, be it in an
organization, bureaucracy or government etc.
4. Expert Power- This is a personal kind of power which owes its genesis to the skills and expertise
possessed by an individual, which is of higher quality and not easily available. In such a situation,
the person can exercise the power of knowledge to influence people
5. Referent Power- This is a power wielded by celebrities and film stars as they have a huge
following amongst masses who like them, identify with them and follow them.

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Situational Questions:

1. Describe a difficult work situation/project and how you overcame it: When answering these
questions, give one or two concrete examples of difficult situations you have actually faced at
work. Then discuss what decisions you had to make to remedy the situations.

2. Describe a challenge or problem you faced. How did you handle it?
1. Recall a challenge that was significant, but one that you consider a success.
2. Don’t just say what you did — explain how you did it.
3. Emphasize the outcome and what you learned from it

3. Give an example of a goal you reached and tell me how you achieved it: Listen closely to the
question. This is not asking about your future goals. The question is asking about recent goals
you have completed and how you achieved them. It is a behavioral question that you should
answer using the STAR (situation or task, action, results) approach. Keep it professional, not
personal.

4. What would you do if you were working on an important project and all of the sudden the
priorities were changed: When faced with this question, interviewees often assume the
interviewer is trying to gauge how flexible they can be. In some instances, this may be true.
However, the interviewer may just easily be trying to determine if you're the type of person who
will put their foot down about it. Like all situational interview questions, the interviewer is trying
to determine if you can think under pressure, how you analyze a situation, and how you're likely
to interact with others.

5. Share with me a time you went the extra mile to resolve a problem or accomplish
something: Employers want employees who contribute to the success of the company and don't
just show up to collect a paycheck. This question is designed to see if you'll be a contributing
team member, can adapt to changing situations and to ensure that you're flexible. You don't
need to share something overly spectacular, but you do want to show that you're the type of
person who will go above and beyond the call of duty.

Few other questions:

1. Describe a situation that required a number of things to be done at the same time. How did you
handle it? What was the result?
2. What Can Our College Offer You that Another College Cannot?
3. If you know your boss is 100% wrong about something, how would you handle it?

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Finance
Finance describes the management, creation, and study of money, banking, credit, investments, assets
and liabilities that make up financial systems, as well as the study of those financial instruments.
Financial accounting

Financial accounting is the process of recording, summarizing and reporting the myriad of transactions
resulting from business operations over a period of time. These transactions are summarized in the
preparation of financial statements, including the balance sheet, income statement and cash flow
statement, that encapsulate the company's operating performance over a specified period.
Balance Sheet

A balance sheet is a financial statement that summarizes a company's assets, liabilities and shareholders'
equity at a specific point in time. These three balance sheet segments give investors an idea as to what
the company owns and owes, as well as the amount invested by shareholders.
The balance sheet adheres to the following formula:
Assets = Liabilities + Shareholders' Equity
Income Statement

An income statement is a financial statement that reports a company's financial performance over a
specific accounting period. Financial performance is assessed by giving a summary of how the business

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incurs its revenues and expenses through both operating and non-operating activities. It also shows the
net profit or loss incurred over a specific accounting period.
Cash Flow Statement
Cash flow Statement is a financial statement that shows how changes in balance sheet accounts and
income affect cash and cash equivalents, and breaks the analysis down to operating, investing and
financing activities.

Fixed Asset
A fixed asset is a long-term tangible piece of property that a firm owns and uses in the production of its
income and is not expected to be consumed or converted into cash any sooner than at least one year's
time. Fixed assets are sometimes collectively referred to as "plant."

Net Present Value

Net Present Value (NPV) is the difference between the present value of cash inflows and the present
value of cash outflows. NPV is used in capital budgeting to analyze the profitability of a projected
investment or project.
Bond
A bond is a fixed income investment in which an investor loans money to an entity (typically corporate
or governmental) which borrows the funds for a defined period of time at a variable or fixed interest
rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money
and finance a variety of projects and activities. Owners of bonds are debtholders, or creditors, of the
issuer.
Internal rate of return (IRR)
Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability of potential
investments. Internal rate of return is a discount rate that makes the net present value (NPV) of all cash
flows from a particular project equal to zero.
Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term
obligations. To gauge this ability, the current ratio considers the current total assets of a company (both
liquid and illiquid) relative to that company’s current total liabilities.

22
Futures Contract

A futures contract is a legal agreement, generally made on the trading floor of a futures exchange, to
buy or sell a particular commodity or financial instrument at a predetermined price at a specified time
in the future. Futures contracts are standardized to facilitate trading on a futures exchange and,
depending on the underlying asset being traded, detail the quality and quantity of the commodity.

Market Index

A market index is an aggregate value produced by combining several stocks or other investment vehicles
together and expressing their total values against a base value from a specific date. Market indexes are
intended to represent an entire stock market and thus track the market's changes over time.

Risk Premium

A risk premium is the return in excess of the risk-free rate of return on investment is expected to yield;
an asset's risk premium is a form of compensation for investors who tolerate the extra risk, compared
to that of a risk-free asset, in a given investment. For example, high-quality corporate bonds issued by
established corporations earning large profits have very little risk of default. Therefore, such bonds pay
a lower interest rate, or yield, than bonds issued by less-established companies with uncertain
profitability and relatively higher default risk.

Dividend signalling

Dividend signalling is a theory suggesting that when a company announces an increase in dividend
payouts, it is an indication it possesses positive future prospects. The thought behind this theory is
directly tied to game theory; managers with good investment potential are more likely to signal. While
the concept of dividend signaling has been widely contested, the theory is still a key concept utilized by
proponents of inefficient markets.

Asset allocation

Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a
portfolio's assets according to an individual's goals, risk tolerance, and investment horizon. The three
main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk and
return, so each will behave differently over time.

Passive investing

Passive investing is an investment strategy that aims to maximize returns over the long run by keeping
the amount of buying and selling to a minimum. The idea is to avoid the fees and the drag on

23
performance that potentially occur from frequent trading. Passive investing is not aimed at making quick
gains or at getting rich with one great bet, but rather on building slow, steady wealth over time.

Agency Problem

The agency problem is a conflict of interest inherent in any relationship where one party is expected to
act in another's best interests. In corporate finance, the agency problem usually refers to a conflict of
interest between a company's management and the company's stockholders. The manager, acting as
the agent for the shareholders, or principals, is supposed to make decisions that will maximize
shareholder wealth even though it is in the manager’s best interest to maximize his own wealth.

Audit

An audit is an objective examination and evaluation of the financial statements of an organization to

make sure that the records are a fair and accurate representation of the transactions they claim to
represent. It can be done internally by employees of the organization, or externally by an outside firm.
The IRS can perform audits to verify the accuracy of a taxpayer’s returns or other transactions. When an
audit is being performed by the IRS, it usually carries a negative connotation and is seen as evidence of
some type of wrongdoing by the taxpayer.

Socially Responsible Investment - SRI

An investment that is considered socially responsible because of the nature of the business the company
conducts. Common themes for socially responsible investments include avoiding investment in
companies that produce or sell addictive substances (like alcohol, gambling, and tobacco) and seeking
out companies engaged in social justice, environmental sustainability and alternative energy/clean
technology efforts. Socially responsible investments can be made in individual companies or through a
socially conscious mutual fund or exchange-traded fund (ETF).

Multiplier Effect

The multiplier effect is the expansion of a country's money supply that results from banks being able to
lend. The size of the multiplier effect depends on the percentage of deposits that banks are required to
hold as reserves. In other words, it is the money used to create more money and is calculated by dividing
total bank deposits by the reserve requirement.

Liquidation

In finance and economics, liquidation is an event that usually occurs when a company is insolvent,
meaning it cannot pay its obligations as and when they come due. The company’s operations are brought
to an end, and its assets are divvied up among creditors and shareholders, according to the priority of

24
their claims. Chapter 7 of the U.S. Bankruptcy Code governs liquidation proceedings; solvent companies
can also file for Chapter 7, but this is uncommon. Not all bankruptcies involve liquidation; Chapter 11,
for example, involves rehabilitating the bankrupt entity and restructuring its debts.
Green Field Investment

A green field investment is a form of foreign direct investment where a parent company builds its
operations in a foreign country from the ground up. In addition to the construction of new production
facilities, these projects can also include the building of new distribution hubs, offices and living quarters.
Value Proposition

A value proposition is a business or marketing statement that a company uses to summarize why a
consumer should buy a product or use a service. This statement convinces a potential consumer that
one particular product or service will add more value or better solve a problem than other similar
offerings. Companies use this statement to target customers who will benefit most from using the
company's products, and this helps maintain an economic moat.
Interest Expense

The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown
on the income statement. It represents interest payable on any borrowings – bonds, loans, convertible
debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal
amount of the debt. Interest expense on the income statement represents interest accrued during the
period covered by the financial statements, and not the amount of interest paid over that period. While
interest expense is tax-deductible for companies, in an individual's case, it depends on his or her
jurisdiction and also on the loan's purpose.
Backward Integration

Backward integration is a form of vertical integration that involves the purchase of, or merger with,
suppliers up the supply chain. Companies pursue backward integration when it is expected to result in
improved efficiency and cost savings. For example, this type of integration might cut transportation
costs, improve profit margins and make the firm more competitive.

25
Economics

Economics: Economics is the study of how individuals, businesses, governments, and nations make
decisions on efficiently allocating resources (keeping in mind the scarcity of resources) to satisfy their
needs and wants. There are two branches of economics: Microeconomics and macroeconomics.
Microeconomics: Microeconomics is the branch of economics that studies how people make decisions
and how these decisions interact.

Macroeconomics: This branch of economics deals with decision making the aggregate level of an
economy. It studies the behavior of the economy. It is concerned with the overall ups and downs in the
economy and focuses on the unemployment rate, GDP, inflation etc.
Monetary policy: It is a macroeconomic policy instrument used by RBI to achieve objectives like inflation,
unemployment, and economic growth by managing the money supply and interest rates. There be can
either an expansionary monetary policy or contractionary monetary policy, wherein an expansionary
monetary policy refers to when RBI makes efforts to increase the total supply of money in the economy
and contractionary monetary policy refers to when RBI makes efforts to decrease money supply in the
economy. A contractionary monetary policy is generally used to control inflation.
Fiscal Policy: Fiscal policy is the means by which government influences a nation’s economy by adjusting
its spending levels (government expenditure) and the tax rates (revenues). It can also be either
expansionary or contractionary. Expansionary is when the government tries to increase economic
activity by increasing the spending and lowering taxes such that the aggregate demand, savings,
investments changes (increases).

GDP: The market value of all final goods and services produced in an economy within a particular time
period. There are 3 ways of calculating GDP: Expenditure method, Income method, and Output method.
By Expenditure Method:
GDP= C + I + G + X – M
Where C refers to private consumption spending by households, I refers to investment spending by
businesses, G refers to government spending, X refers to exports and I refers to imports.
GDP per capita: It is the level of GDP divided by the country’s population and is a widely used indicator
of the material standard of living in a country.
Economic Growth: Economic growth is the change in GDP and is the main concern for governments and
policymakers.

Nominal V/s Real GDP: The difference between nominal and real GDP is that the real GDP is adjusted
for inflation while the nominal is not. So, the real GDP is the value of final goods and services evaluated
at base year prices and Nominal GDP is the value of final goods and services evaluated at current year
prices.

26
GDP Deflator: GDP Deflator measures the average price level. It is a comprehensive inflation measure
of all goods and services included in the GDP.

Inflation: Inflation is the sustained increase in the price level of goods and services in an economy over
a period of time. It is calculated as the percentage change in price index from year to year. A rise in
inflation erodes the purchasing power of money. It can be measured by two indices:
1. Wholesale Price Index: It represents the price of a representative basket of wholesale goods.
2. Consumer Price Index: It measures the price changes in consumer goods and services purchased
by households.

Deflation: It refers to the decrease in general price level of goods and services.

Disinflation: It refers to a decrease in the rate of inflation- i.e. a slowdown in the rate of increase in the
general price level of goods and services.
Stagflation: It is the situation of slow economic growth and high unemployment combined with high
inflation.
Hyperinflation: It refers to very high and accelerating rates of inflation.

Balance of payments (BOP): It is simply one nation’s accounts with the rest of the world including
imports and exports of goods and services, but also in capital goods and increasingly so in financial
assets. There are 4 parts to the BOP:

 Current Account- Trade in g&s (trade gap or BOT)

 Capital Account- Records Inter. purchases & sales of Financial assets)

 Balancing Item- statistical adjustments.

 Official Financing: Adding the previous three items gives the balance of payments position. The
balance of payments must be in overall balance; this remaining balance is therefore countered
by official financing. Therefore, the balance of payments will always equate to zero.

27
Capital Account: A capital account shows the net change in physical or financial asset ownership for a
nation and, together with the current account, constitutes a nation's balance of payments. The capital
account includes foreign direct investment (FDI), portfolio and other investments, plus changes in the
reserve account.

 A country’s balance of payments on financial account, or simply its financial account, is the
difference between its sales of assets to foreigners and its purchases of assets from foreigners
during a given period.

Current Account: The current account records a nation's transactions with the rest of the world –
specifically its net trade in goods and services, its net earnings on cross-border investments, and its net
transfer payments – over a defined period of time, such as a year or a quarter.
 The balance of payments on current account, or current account, includes balance of payments
on goods and services together with balances on factor income and transfers.

Fiscal Deficit: A fiscal deficit occurs when government’s total expenditures exceed the revenue it
generates (excluding the borrowings). It is different from debt, which is basically an accumulation of
yearly deficit.
Revenue Deficit: A revenue deficit occurs when the net income generated (revenue less expenditures)
falls short of the projected net income. This happens when the actual amount of revenue received or
the actual expenditure do not correspond with budgeted revenue and expenditure figures.
Exchange Rate: The prices at which currencies trade are known as exchange rates. When a currency
becomes more valuable in terms of other currencies, it appreciates. When a currency becomes less
valuable in terms of other currencies, it depreciates.

Purchasing Power Parity: The purchasing power parity between two countries’ currencies is the nominal
exchange rate at which a given basket of goods and services would cost the same amount in each
country.

GST: It is a destination-based tax on consumption of goods and services. It is proposed to be levied at all
stages right from manufacture up to final consumption with credit of taxes paid at previous stages
available as setoff. In a nutshell, only value addition will be taxed and burden of the tax is to be borne
by the final consumer.

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 Budget Highlights
Finance Minister Mr. Arun Jaitley delivered BJP government’s last and full budget on Feb 1, 2018. The
agriculture sector, basically farmers, health and education sectors will most benefit from the budget.
Agriculture
o Government tried doubling farmers incomes by setting the MSP for Kharif crops at 1.5
times the produce price.
o Agricultural market and infra fund of Rs 2000 crore fund will be set up to strengthen the
market connectivity.
o A sum of Rs 500 cr will be allocated for Operation Green to be launched. It will promote
agricultural products.
o Extend the facility of Kisan credit card to fisheries and for animal husbandry
o Rs. 10,000 crore set aside for Fisheries and Aquaculture Development Fund
o Rs. 10,000 crore set aside for animal husbandry infra fund
o Propose to launch a restructured bamboo mission with a fund of Rs 1200 crore. "Bamboo
is green gold," Jaitley said.
o Agricultural credit target increased from Rs 8.5 lakh crore to Rs 11 lakh crore

Rural Economy
o 8 crore poor women will get new LPG connections.
o PM Saubhagya Yojana: 4 crore poor people will get power connection.
o Govt plans to construct 2 crore toilets in next fiscal year under Swachh Bharat Mission
o Government target house for all by 2022. 51 lakh houses have been constructed
affordable houses in rural and further 50 lakh houses in urban areas.
o Govt gives Rs 9,975 crore for social security schemes for the next fiscal year.

Education
o In the education sector, government plans to increase the digital intensity and use
technology to improve the quality of education. It has allocated Rs 1 Lakh crore for
revitalization and upgradation.
o By 2022, every block with more than 50 percent ST population will have Ekalvya schools
at par with Navodaya Vidyalayas
o PM research fellows: Govt will identify 1000 B-tech students each year and provide them
to do PhDs in IIT and IISc, while also teaching undergraduate students once a week at that
time.

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Health
o Flagship National Healthcare protection scheme, with approximately 50 crore
beneficiaries. Up to Rs 5 lakh per family per year for secondary and tertiary care
hospitalization. World's largest government-funded healthcare programme.
o Aayushman Bharat programme: 1.5 lakh centers will be set up to provide health facilities
closer to home. Rs 1,200 crore to be allocated for this programme
o Setting up of one medical college for every three parliamentary constituencies, with 24
New government medical colleges also being envisioned. Government also will work on
upgrading hospitals to medical colleges

Social Security
o Govt will expand PM Jan Dhan Yojana: Al 16 crore accounts will be included under micro
insurance and pension schemes
o Social inclusion schemes for Scheduled Castes - Rs 52,719 crore
o Social inclusion schemes for Scheduled Tribes Rs 39,139 crore

MSME
o Rs 3,794 crore allocated to the MSME sector in the form of capital support and interest
subsidy.
o Rs 3 lakh crore target has been set for the Mudra Yojana
o Rs 4.6 lakh cr sanctioned under MUDRA Scheme

Petroleum/Diesel Sector
o Excise on unbranded diesel cut by 2 rupees to 6.33 rupee/ltr
o Excise on unbranded petrol cut by 2 rupees to 4.48 rupee/ltr

Employee-centric schemes
o Govt will contribute 12% of the wages of new employees in EPF in all sectors for next 3
years
o Women contribution to EPF reduced to 8% for first 3 years
Infrastructure
o Bharatmala project: To develop 35,000 KM under phase 1 with an outlay of Rs 5.35 lakh
crore
o India needs investment of Rs 50 lakh crore in the infrastructure sector
o Construction of new tunnel in Sera Pass to promote tourism
o Out of 100 smart cities 99 cities have been selected, with an outlay of Rs 2.04 lakh crore

30
Railways
o Railway capex has been pegged at Rs 1.48 lakh crore, up from Rs 1.31 lakh crore last year
o More stations and trains will progressively be built with WiFi and CCTV camera
o Allocates Rs 11,000 crore Mumbai rail network and Rs 17,000 crore for the Bengaluru
metro
o 150 km of additional suburban railway networks to be set up in Bengaluru at the cost of
Rs 17,000 Cr.

Markets
o Govt to take additional measures to strengthen the environment for venture capitalists
and angel investors.
o SEBI to consider mandating large corporations to meet 1/4th of their debt needs
o SEBI to mull asking large cos to meet 25% debt from bond market
o RBI norms to nudge companies to access bond market for funds

Technology
o Allocation to Digital India scheme doubled to Rs 3073 cr
o 5 lakh WiFi HotSpots to provide Broadband access to 5 crore rural citizens, at the cost of
Rs 10,000 Cr.

Companies
o Govt will evolve a scheme to assign a Unique ID for cos
o Disinvestment target revised to Rs. 1 Lakh crore for FY18 and Rs. 80000 crore for FY19.
o National Insurance Co, Oriental Insurance Co, and United Assurance Co to be merged into
one entity and subsequently listed

Banking
o Recapitalisation will pave the way for public banks to lend an additional Rs 5 lakh crore

Others
o Defence outlay raised to Rs 2.82 lakh crore in 2018-19 from Rs 2.67 lakh crore in current
year
o Food subsidy to rise to Rs 1.69 lakh crore in 2018-19 from Rs 1.4 lakh crore in current
year.
o Emoluments for President set at Rs 5 lakh, Rs 4 lakh for Vice President, Rs 3.5 lakh for
governors
o Emoluments for Parliamentarians: Law for increase in pay based on index to inflation

31
Fiscal Deficit
o Fiscal deficit is 3.5% of GDP at Rs 5.95 lakh crore in 2017-18. Projecting fiscal deficit to be
3.3% of GDP in the next fiscal
o Rs 21.57 lakh crores transferred as net GST to states against a projection of Rs 21.47 lakh
crores

Tax
o 100% tax deduction is allowed to co-operative societies
o Corporate Tax of 25% extended to companies with turnover up to Rs 250 cr in financial
year 2016-17
o Incentives for Senior citizens: Exemptions in income of Rs 10,000 from Banks FD and post
offices
o Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for
salaried taxpayers
o Government introduced Long Term capital gains tax on gains exceeding Rs 1 Lakh
(without indexing) at 10%
o No change was made to short-term capital gains tax

Custom Duties
o Customs Duty on certain products, such as mobile phones and televisions has been
increased, to provide a fillip to 'Make in India'
o Import of solar tempered glass for the manufacture of solar cells exempted from customs
duty.

Implications: While the budget this year saw heavy investments in the rural sector, infrastructure
sector and some much-needed investment in education and health sectors, there was some
equally unfavorable news for investors. The LTCG tax was a big disappointment for the investors.
The budget this time is perceived to be an election budget considering the heavy focus on
farming community and rural India and nothing much was there for the middle class or the
investing class or the corporates. LTCG has brought a major sell-off in the markets and could very
well result in FIIs pulling their money out of the Indian markets and investing elsewhere as this
will definitely erode the exceptional returns that they were able to get earlier considering that
India is an emerging economy. Is India ready to lose FII’s investments?

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 Why Marketing is important
Getting Word Out
For a business to succeed, the product or service it provides must be known to potential buyers. Unless
your business is known in the community and has communication with your customers readily available,
you have to use marketing strategies to create product or service awareness. Without marketing, your
potential customers may never be aware of your business offerings and your business may not be given
the opportunity to progress and succeed. Using marketing to promote your product, service and
company provides your business with a chance of being discovered by prospective customers.

Higher Sales
Once your product, service or company gets on the radar screen of your prospects, it increases your
chances that consumers will make a purchase. As awareness becomes a reality, it is also the point where
new customers start to spread the word, telling friends and family about this amazing new product they
discovered. Your sales will steadily increase as the word spreads. Without employing marketing
strategies, these sales may not have ever happened; without sales, a company cannot succeed.

Company Reputation
The success of a company often rests on a solid reputation. Marketing builds brand name recognition or
product recall with a company. When a company reaches the high expectations of the public, its
reputation stands on firmer ground. As your reputation grows, the business expands and sales increase.
The reputation of your company is built through active participation in community programs, effective
communication--externally and externally--and quality products or services, which are created or
supported by marketing efforts.

Healthy Competition
Marketing also fosters an environment in the marketplace for healthy completion. Marketing efforts get
the word out on pricing of products and services, which not only reaches the intended consumers but
also reaches other companies competing for the consumers’ business. As opposed to companies that
have a monopoly on products and services that can charge almost any price, marketing helps keep
pricing competitive for a business to try to win over consumers before its competition does. Without
competition, well-known companies would continue to sell while lesser known companies or new
companies would stand little chance of ever becoming successful. Marketing facilitates the healthy
competition that allows small businesses and new businesses to be successful enter and grow in the
marketplace.

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Considerations
Although marketing is hugely important for a business to succeed, it can also be very expensive. In its
first year, a company might spend as much as half of its sales on marketing programs. After the first year,
a marketing budget can reach as much as 30 percent--sometimes more--of the annual sales. A marketing
program that gives your company the best chance is a healthy mix of different forms of marketing, such
as website development, public relations, print and broadcast advertising, design and printing for all
print materials, trade shows and other special events.

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. Without marketing, your business may offer the best products or services in your industry,
but none of your potential customers would know about it. Without marketing, sales may crash and
companies may have to close.

Basic Marketing Concepts

These are the basic words every marketer should feel comfortable defining and using. Regardless of the
type of marketing strategy, these concepts are always relevant to any marketer.

Marketing Mix: or the famous 4 Ps: Price, Place, Product, and Promotion.
Market: a group of potential buyers. (very narrow Marketing -specific definition).
Consumer: the person who consumes the product or service.
Target Market: the group of consumers a business desires to have as customers.
Goods: products which are tangible items that satisfy the customer’s needs and wants.
Services: products which are intangible items that satisfy a customer’s needs and wants.
Competitive Advantage: the advantage a particular business has over its competitors.

Online Marketing Concepts

In the last decade Marketing has greatly benefited from new internet technologies; paving the way for
what we now know as “online marketing”. To remain relevant, modern marketers must have a firm
grasp of the basic concepts relating to online marketing. Below are a few basic online marketing terms
every marketer should be familiar with.

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CRM: the acronym for Customer Relationship Management. CRM refers to the processes and
technologies which businesses use to manage their contact and relationships with their client base. To
learn more about CRM click here.
Keywords: these are the main words a searcher would use when conducting an online query. Keywords
are a basic method for flagging a website’s relevance to the search engines. Marketers can strategically
insert keywords on specific pages on the website to increase search engine listing success.
Landing Page: a page on a website, visitors reach after clicking on a link. Landing pages are often used
as registration pages for events, webinars, newsletters etc.
Metrics: measurements used to review the performance of some aspect of the business. For example,
Return on Investment ROI (see below).
Pay Per Click (PPC): an online advertising payment model in which payment is based solely on qualifying
click-through. The size of the payment is usually determined by bidding on keywords. For example,
Google AdWords.
Return on Investment (ROI): a financial performance measurement used to compare the money earned
in relation to an investment. Recently it has been widely used by marketers to measure and analyze
what promotional tactics are more effective.
Search Engine Optimization (SEO): the marketing technique of optimizing a website to increase its
chances of being ranked in the top results of a search engine. Many factors are important for SEO,
including content, structure, meta tags, keywords, etc.
Social Media: the online tools and platforms that allow users to interact and communicate on the
internet by sharing content on social networks. Popular social media platforms include Facebook,
Twitter, LinkedIn, etc.
Value Proposition Statement: a written statement conveying the essential features of the brand and
what it stands for. In other words, it provides a blueprint for the marketing and development of a brand.
Viral Marketing: A method of product promotion that relies on electronic Word- of- Mouth. Viral
marketing induces users to pass on a marketing message to other users.

MARKETING CONCEPT

The marketing concept is the belief that companies must assess the needs of their consumers first and
foremost. Based on those needs, companies can make decisions in order to satisfy their consumers’
needs, better than their competition. Companies that hold this philosophy believe that their consumers
are the driving forces of their business. Nowadays, most companies have incorporated the marketing
concept. So if you were a new company, how would you know what a customer would need and want?

First of all, let us define needs and wants. Needs are basic requirements for an individual to survive.
Some examples are water, food, shelter, etc. Obviously, the needs of consumers are wide-
ranging. Wants are the desire for something that an individual cannot live without. Some examples are
a bigger home, a brand new car, an iPad, and the like. Even though consumers’ needs are broad, wants
can be very particular.
35
Consumers decide to buy based on both their needs and wants. Case in point, if they were hungry, they
would need food. If you base it simply on that, then any kind of food will do. Yet, the consumer would
have particular food in mind. Even though they can get a burger from Burger King, what they might truly
want is a half-pound grilled burger from a bar in their local neighborhood. It is at this point that
marketers would come in. Marketers acknowledge the needs of consumers and use the consumers’
desire for what they want to steer them towards specific products and services.

The marketing concept underscores:

 identifying the market or targeting consumers;

 understanding the needs and wants of the consumers in the target market;
 creating products or services based on the consumers’ needs and wants;
 satisfying the needs of consumers better than competitors; and
 accomplishing all of these while earning a profit.

The Difference between Marketing and Marketing Concepts.

Sometimes people blur the lines between marketing and marketing concepts. Marketing is promoting
the products and services of a company for a particular target market. As a whole, marketing brings
attention the offerings of a company. These may be goods for sale or services on offer. Typical examples
of marketing on the ground are billboards on the road, television commercials, and magazine
advertisements.

However, not all companies have the same approach towards marketing their goods and services.
Actually, there are a couple of strategies for making marketing successful for any company. The
approaches talked about are these marketing concepts. These approaches of a company peg what kind
of marketing tools they can and will use in a business.

As previously described, the marketing concept is a business philosophy that keeps in mind that long-
run profitability is best accomplished through concentrating company activities towards satisfying the
needs of a specific target market.

The market concept, on the other hand, creates suitable market intelligence as connected to present
and future consumer needs, as well as the relative capabilities of the competition to satisfy those needs.
This concept is the incorporation and distribution of market intelligence throughout departments and
coordinated creation and implementation of a company’s response to opportunities in the market.

This article will highlight the types of marketing concepts, specifically the production concept, the
product concept, the selling concept, the marketing concept, and the societal marketing concept. The
discussion will show how concepts of marketing have evolved, leading to the marketing concept that is
mostly used by all companies to date – at least those companies that want to survive and thrive in their
industries.

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Marketing mix
The marketing mix is a crucial tool to help understand what the product or service can offer and how to
plan for a successful product offering. The marketing mix is most commonly executed through the 4 P’s
of marketing: Product, price, place, promotion.

Product – The first of the Four Ps of marketing is product. A product can be either a tangible good or an
intangible service that fulfills a need or want of consumers.

Price – Once a concrete understanding of the product offering is established we can start making some
pricing decisions. Price determinations will impact profit margins, supply, demand, and marketing
strategy.

Place - Often you will hear marketers saying that marketing is about putting the right product, at the
right price, at the right place, at the right time. It’s critical then, to evaluate what the ideal locations are
to convert potential clients into actual clients. Today, even in situations where the actual transaction
doesn’t happen on the web, the initial place potential clients are engaged and converted is online.

Promotion – We’ve got a product and a price now it’s time to promote it. Promotion looks at the many
ways marketing agencies disseminate relevant product information to consumers and differentiate a
particular product or service. Promotion includes elements like advertising, public relations, social media
marketing, email marketing, search engine marketing, video marketing and more. Each touch point must
be supported by a well-positioned brand to truly maximize return on investment.

Differences between sales and marketing

Marketing is: -

1) Marketing is one to many.

2) Marketing tells the stories (company, product, etc.) to many people.

3) Marketing looks after the brand’s reputation

4) Marketing needs to keep the stories circulating and resonating with the target markets using the
company’s plumb line (the business of the business) as its central reference.

5) Marketing analyses the big data. Marketing brings you the average result, not the specifics.

6) Marketing studies what experience customers expect when they buy or try a product, service or
solution. That means reading their digital footprint and understanding their online chatter as much as it
does focus group discussions. Marketing looks for new metrics about consumer clusters and grouping.
Online groups are markets of the near future as more and more people cocoon themselves and shop
less.

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7) Marketing should not promote special prices and discounts, instead replace these with special offers,
focusing on delivering greater value – more bang for the buck is the new mantra and greater value with
fair exchange is the principle of pricing today – not cost plus as it has been in the past.

Sales is: -

1) Sales is about one to one.

2) Sales is where our business becomes real for the client. It is where the stories and brand come to life.

3) Sales develops relationships. It’s relationship-driven.

4) Sales looks after individuals.

5) Sales deals with the ambiguities and the details of each person. It cannot be averaged.

6) Sales analyses the behavior of the prospects and customers whom they deal with on an individual
basis. Sales professionals talk to their customers about the joys of risk-free offerings that help them
realize their goals and objectives. They tap into their buyers’ Facebook, LinkedIn and other digital pages
to gain a deeper understanding of what experiences each individual customers want.

7) Sales moves away from discussing price and discount, instead of replacing these with discussions
about the total cost of ownership which includes price but extends to include deliveries, warranties,
support, training and the other contributing things that are delivered as part of the purchase. Sales
engages with customers to understand what risks they face when making a purchase and then learns
how to position their companies as risk-free alternatives.

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 Sales Marketing

Sales is a narrower concept & Marketing is a wider concept &

Concept and Scope
Short Term Long Term

Usually one to one - direct

Process One to many - indirect activity
activity

To listen and accommodate

target market and determine
future needs – i.e. maintain the
To make customer demand
company in the market; to
Function match the company’s product –
create products to meet
i.e. sell the product
customer needs. Also to
promote and advertise the said
products.

Generate purchases or orders, Generate leads and internet in

Focus
meet sale volume objectives the company

Marketing shows how to reach

Ranking Sales is a step or marketing
the Customers

Identifying customers,
Directly selling the product to producing innovative products,
Incorporates
the customer. branding, advertising, public
relations, sales, etc.

Fulfilling the demands of a The process of creating demand

Correlation
product. for a product in the market.

Selling the product on basis of Creating and maintaining a

Purpose
the brand image. brand image.

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Basics of Marketing Research

According to American Marketing Association “marketing research is the systematic gathering, recording
and analyzing of data about problems relating to the marketing of goods and services.” The features of
marketing research are:

1. Search for data:

It is a search for data which are relevant to marketing problems – problems in different functional areas
of marketing consumer behavior, product, sales, distribution channel, pricing, ad and physical
distribution.

2. It is systematic:

It has to be carried out in a systematic manner rather than haphazard way. The whole process should be
planned with a clear objective.

3. It should be objective:

Objectivity is more important in any result. It means that the research is neither carried on to establish
an opinion nor is intentionally slanted towards pre-determined results.

4. It is a process:

It involves various steps for gathering, recording and analyzing data.

Objectives of Marketing Research:

Marketing research may be conducted for different purposes. The main objectives or purposes of
marketing research are:

i) To estimate the potential market for a new product to be introduced in the market.

ii) To know the reactions of the consumers to a product already existing in the market.

iii) To find out the general market conditions and tendencies.

iv) To know the reasons for the failure of a product already in the market.

v) To find out the better methods of distributing the products to consumers.

vi) To know the types of consumers buying a product and their buying motives to know their opinions
about the product and to get their suggestion improvement of a product.

vii) To assess the strength and weakness of the competitors.

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viii) To know the dimensions of the marketing problems.

ix) To ascertain the distribution methods suited to the product and the

x) To estimate the market share of a firm.

xi) To assess the probable sales volume of a firm.

Word of Mouth Marketing

Word-of-mouth Marketing is the passing of information from person to person by oral communication.
Customers are very excited to share with the world the brands they love. Many consumers find meaning
in sharing stories of their favorite products and services. Word of Mouth is one of the ancient ways
people learned about what to purchase. Modern marketers have learned how to create authentic word
of mouth for their companies and the products they represent.

Social Media Marketing

Social media sites like Facebook and Twitter offer a unique opportunity for savvy businesses willing to
invest in customer engagement. Social media marketing is still in its infancy but is growing up rather
quickly. Companies like Southwest Airlines have departments of over 30 people whose primary
responsibility is to actively engage with customers on social media.

Ambush Marketing

Ambush marketing or ambush advertising is a marketing strategy in which an advertiser "ambushes" an

event to compete for exposure against competing advertisers. It is the practice by which a rival company
attempts to associate its products with an event that already has official sponsors.

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Guerrilla marketing

Guerrilla Marketing is an advertising strategy that focuses on low-cost unconventional marketing tactics
that yield maximum results. This alternative advertising style relies heavily on unconventional marketing
strategy, high energy and imagination. Guerrilla Marketing is about taking the consumer by surprise,
make an indelible impression and create copious amounts of social buzz. Guerrilla marketing is said to
make a far more valuable impression on consumers in comparison to more traditional forms of
advertising and marketing.

Surrogate Marketing

Surrogate advertising is a form of advertising which is used to promote banned products,

like cigarettes and alcohol, in the disguise of another product. This type of advertising uses a product of
a fairly close category such as club soda, mineral water in case of alcohol, or products of a completely
different category (for example, music CD's or playing cards) to hammer the brand name into the heads
of consumers. The banned product (alcohol or cigarettes) may not be projected directly to consumers
but rather masked under another product under the same brand name, so that whenever there is
mention of that brand, people start associating it with its main product (the alcohol or cigarette).
In India, there is a large number of companies doing surrogate advertising, from Bacardi Blast music
CD's, Bagpiper Club Soda to Officers Choice playing cards.

Marketing myopia

A short-sighted and inward-looking approach to marketing that focuses on the needs of the company
instead of defining the company and its products in terms of the customers' needs and wants. It results
in the failure to see and adjust to the rapid changes in their markets.

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 Management information system (MIS)
Management information system, or MIS, broadly refers to a computer-based system that provides
managers with the tools to organize evaluate and efficiently manage departments within an
organization.
Business managers at all levels of an organization, from assistant managers to executives, rely on reports
generated from these systems to help them evaluate their business' daily activities or problems that
arise, make decisions, and track progress. The MIS reports are handy for taking a critical business
decision in an organization.
Technology management is an integrated planning; design, optimization, operation, and control of
technological products, processes, and services, a better definition would be the management of the
use of technology for human advantage.

The primary purpose of a management information system, or MIS, is to assist managers in making
strategic, tactical and operational decisions in an efficient and productive manner.
MIS reporting tools: UBIQ seamlessly reports data from various Management Information Systems. It
merges reports from various subunit of businesses into a single MIS report directly in your web browser.
It enables middle and high-level managers to monitor departments and processes directly from one
place, instantly get actionable information and take decisions.

MIS principal concerns: Facilitate decision making by supplying the information needed in an up-to-date
and accurate form

 To the people who need it.

 On time.
 In a usable form.
TYPES OF MIS:

 Databank information system.

 Predictive information system.
 Decision making information system.
 Decision taking information system.
Information
Information can be recorded as signs, or transmitted as signals. Information is any kind of event that
affects the state of a dynamic system that can interpret the information. Data can be defined as
unprocessed facts or figures that do not give meaningful information. Plain data that is gathered as raw
facts does not help in decision-making. Therefore, to make the raw data meaningful it is to be processed,
organized, structured and interpreted to create useful information systems.

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According to Davis and Olson: "Information is a data that has been processed into a form that is
meaningful to the recipient and is of real or perceived value in the current or the prospective action or
decision of recipient."
Professor Ray R. Larson of the School of Information at the University of California, Berkeley, provides
an Information Hierarchy, which is:

 Data - The raw material of information.

 Information - Data organized and presented by someone.
 Knowledge - Information read, heard, or seen, and understood.
 Wisdom - Distilled and integrated knowledge and understanding.
 Scott Andrews' explains Information Continuum as follows:
 Data - A Fact or a sequence of information, or a series thereof.
 Information - Knowledge discerned from data.
 Business Intelligence - Information Management pertaining to an organization's policy or
decision-making, particularly when tied to strategic or operational objectives.
Managers make decisions. Decision-making generally takes a four-fold path:

 Understanding the causes for decision or the opportunity,

 Alternative course of actions is prepared.
 Evaluating all alternative course of actions,
 At last, decide the right path for implementation.
MIS is an information system that gives information in the form of standardized reports and displays for
the managers. MIS is a broad class sector of information systems specially designed to provide
information, which is needed for effective decision making in an organizational sector.
Multitude of applications comes under the definition of Enterprise Applications:

 Management information system (MIS)

 Enterprise Resource Planning (ERP)
 Customer Relationship Management (CRM)
 Decision Support System (DSS)
 Knowledge Management Systems (KMS)
 Content Management System (CMS)
 Executive Support System (ESS)
 Business Intelligence System (BIS)
 Enterprise Application Integration (EAI)
 Business Continuity Planning (BCP)
 Supply Chain Management (SCM)

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Difference between OLAP and OLTP
A large number of short on-line transactions (INSERT, UPDATE, and DELETE) characterizes OLTP (On-line
Transaction Processing). The main emphasis for OLTP systems is on very fast query processing,
maintaining data integrity in multi-access environments and an effectiveness measured by a number of
transactions per second.
OLAP (On-line Analytical Processing) is characterized by a relatively low volume of transactions. Queries
are often very complex and involve aggregations. For OLAP systems, a response time is an effectiveness
measure. OLAP applications are widely used by Data Mining techniques. In OLAP database there is
aggregated, historical data, stored in multi-dimensional schemas (usually star schema).

What do you consider documentation and why is it important?

Documents can be exciting, inspiring, and creative forms of expression. Documents can be "living" data,
intended to be evolving roadmaps that can empower a client team long after the vendor has left and
the project deliverables have been handed over. Documents are often the foundations that survive the
longest and inform the next iteration of thinking. We know that writing is a helpful tool for memory, we
have learned that lists help keep us organized, we have even seen studies that suggest the act of writing
something down ensures it has a higher likelihood of succeeding.

Clustering
Clustering is the grouping of a particular set of objects based on their characteristics, aggregating them
according to their similarities. Regarding to data mining, this methodology partitions the data
implementing a specific join algorithm, most suitable for the desired information analysis.

SQL/NoSQL
What is NoSQL? How is it different from SQL?

 SQL databases are Relational Databases (RDBMS); whereas NoSQL database is primarily called as
non-relational or distributed database.
 SQL databases are table based databases whereas NoSQL databases are document based, key-
value pairs, graph databases or wide-column stores. This means that SQL databases represent
data in form of tables which consists of n number of rows of data whereas NoSQL databases are
the collection of key-value pair, documents, graph databases or wide-column stores which do
not have standard schema definitions which it needs to adhere to.
 SQL databases have predefined schema whereas NoSQL databases have dynamic schema for
unstructured data.
 SQL database examples: MySql, Oracle, SQLite, Postgres, and MS-SQL. NoSQL database
examples: MongoDB, BigTable, Redis, RavenDb, Cassandra, Hbase, Neo4j and CouchDB
 For complex queries: SQL databases are good fit for the complex query intensive environment
whereas NoSQL databases are not good fit for complex queries. On a high-level, NoSQL doesn’t
have standard interfaces to perform complex queries, and the queries themselves in NoSQL are
not as powerful as SQL query language.

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  For the type of data to be stored: SQL databases are unfit for hierarchical data storage. However,
NoSQL database fits better for the hierarchical data storage as it follows the key-value pair way
of storing data similar to JSON data. NoSQL database are highly preferred for large data set (i.e
for big data). Hbase is an example for this purpose.
 For scalability: In most typical situations, SQL databases are vertically scalable. You can manage
increasing load by increasing the CPU, RAM, SSD, etc, on a single server. On the other hand,
NoSQL databases are horizontally scalable. You can just add few more servers easily in your
NoSQL database infrastructure to handle the large traffic.
 For high transactional based application: SQL databases are best fit for heavy-duty transactional
type applications, as it is more stable and promises the atomicity as well as the integrity of the
data. While you can use NoSQL for transactions purpose, it is still not comparable and stable
enough in high load and for complex transactional applications.
 For support: Excellent support is available for all SQL database from their vendors. There are also
lot of independent consultations who can help you with SQL database for large-scale
deployments. For some NoSQL database, you still have to rely on community support, and only
limited outside experts are available for you to setup and deploy your large-scale NoSQL
deployments.
 For properties: SQL databases emphasizes on ACID properties ( Atomicity, Consistency, Isolation,
and Durability) whereas the NoSQL database follows the Brewers CAP theorem ( Consistency,
Availability and Partition tolerance )
 For DB types: On a high-level, we can classify SQL databases as either open-source or close-
sourced from commercial vendors. NoSQL databases can be classified based on the way of
storing data as graph databases, key-value store databases, document store databases, column
store database and XML databases.

SMAC
SMAC (social, mobile, analytics and cloud) is the concept that the convergence of four technologies is
currently driving business innovation.
SMAC is the basis for an ecosystem that enables a business to transition from e-business to digital
business. The four technologies improve business operations and help companies get closer to the
customer with minimal overhead and maximum reach. The proliferation of structured and unstructured
data created by mobile devices, wearable technology, connected devices, sensors, social media, loyalty
card programs and website browsing is creating new business models built on customer-generated data.
None of the four technologies can be an afterthought because it is the integration of social, mobile,
analytics and cloud together that creates a competitive advantage and new business opportunities.

The term SMAC was coined in 2011 or 2012 to describe the impact of the consumerization of IT.
Enterprise computing consisted of one-to-one communication and of software and hardware that lived
on premises. The introduction of mobile devices and the increased reliance on cloud computing upended
the traditional computing model.

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The technologies under the SMAC umbrella are as follows:

 Social: Social media platforms such as Twitter, Facebook, Instagram, and Snapchat have provided
businesses with new ways to reach, interact with, target and acquire customers. It has given rise
to new job titles such as social media influencer or digital influencer, new marketing tactics such
as viral marketing campaigns, and new data sources such as likes, reposts, hashtags and network
connections.
 Mobile: Mobile technologies and platforms such as the iPhone and the iPad, have changed the
way people communicate, shop and work. The introduction of connected devices and wearable
devices, both of which rely on cheap sensors to generate and transmit data, are the basis for new
business models and new services offered to customers.
 Analytics: Data analytics allows businesses to understand how, when and where people consume
certain goods and services. It is also used as a predictive indicator of future customer behavior
as well as when physical assets, such as parts of jet engines, will experience degradation. As the
cost of processing power and storage decreased, analytics became a top priority for companies.
The open source project Apache Hadoop ushered in a new era of analytics called big data.
 Cloud: Cloud computing provides a new way to access technology and the data a business needs
to quickly respond to changing markets and solve business problems. It ushered in a new way to
build infrastructure, platforms, and services. Amazon Web Services was one of the big disruptors
in this space.
While each of the four technologies can affect a business individually, their convergence is proving to be
a disruptive force that is transforming businesses and creating entirely new business models for service
providers.

Different aspects of Industry 4.0

Blockchain is a type of distributed ledger in which value exchange transactions (in bitcoin or other token)
are sequentially grouped into blocks. Blockchain and distributed-ledger concepts are gaining traction
because they hold the promise of transforming industry operating models in industries such as music
distribution, identify verification and title registry. They promise a model to add trust to untrusted
environments and reduce business friction by providing transparent access to the information in the
chain. While there is a great deal of interest, the majority of Blockchain initiatives are in alpha or beta
phases and significant technology challenges exist.
The Blockchain is an incorruptible digital ledger of economic transactions that can be
programmed to record not just financial transactions but virtually everything of value.”
Don & Alex Tapscott, authors Blockchain Revolution (2016)

Picture a spreadsheet that is duplicated thousands of times across a network of computers. Then
imagine that this network is designed to regularly update this spreadsheet and you have a basic
understanding of the Blockchain.

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Information held on a Blockchain exists as a shared — and continually reconciled — database. This is a
way of using the network that has obvious benefits. The Blockchain database isn’t stored in any single
location, meaning the records it keeps are truly public and easily verifiable. No centralized version of this
information exists for a hacker to corrupt. Hosted by millions of computers simultaneously, its data is
accessible to anyone on the internet.

Blockchain technology is like the internet in that it has a built-in robustness. By storing blocks of
information that are identical across its network, the Blockchain cannot:

 Be controlled by any single entity.

 Has no single point of failure.
Bitcoin was invented in 2008. Since that time, the Bitcoin Blockchain has operated without significant
disruption. (To date, any of problems associated with Bitcoin have been due to hacking or
mismanagement. In other words, these problems come from bad intention and human error, not flaws
in the underlying concepts.)
The Blockchain network lives in a state of consensus, one that automatically checks in with itself every
ten minutes. A kind of self-auditing ecosystem of a digital value, the network reconciles every
transaction that happens in ten-minute intervals. Each group of these transactions is referred to as a
“block”. Two important properties result from this:

1. Transparency data is embedded within the network as a whole, by definition it is public.

2. It cannot be corrupted altering any unit of information on the Blockchain would mean using a
huge amount of computing power to override the entire network.
Big Data and Analytics
Big data analytics is the process of examining large and varied data sets -- i.e., big data -- to uncover
hidden patterns, unknown correlations, market trends, customer preferences and other useful
information that can help organizations make more-informed business decisions. Big data analytics
applications enable data scientists, predictive modelers, statisticians and other analytics professionals
to analyze growing volumes of structured transaction data, plus other forms of data that are often left
untapped by conventional business intelligence (BI) and analytics programs. That encompasses a mix of
semi-structured and unstructured data -- for example, internet clickstream data, web server logs, social
media content, text from customer emails and survey responses, mobile-phone call-detail records and
machine data captured by sensors connected to the internet of things.
On a broad scale, data analytics technologies and techniques provide a means of analyzing data sets and
drawing conclusions about them to help organizations make informed business decisions. BI queries
answer basic questions about business operations and performance. Big data analytics is a form of
advanced analytics, which involves complex applications with elements such as predictive models,
statistical algorithms and what-if analyses powered by high-performance analytics systems.

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Unstructured and semi-structured data types typically don't fit well in traditional data warehouses that
are based on relational databases oriented to structured data sets. Furthermore, data warehouses may
not be able to handle the processing demands posed by sets of big data that need to be updated
frequently -- or even continually, as in the case of real-time data on stock trading, the online activities
of website visitors or the performance of mobile applications.

Autonomous Robots
An automatic robot is a type of manipulated robotic system considered to be as one of the earliest
robotic systems on the basis of the control system it possesses. Automatic robots are divided into four
main categories based on their characteristics and applications.
Manipulation robotic system is classified into three types:

 Autonomous controlled robots  Manually controlled robots

 Remote controlled robots
An autonomous robot is mainly used in industrial areas; whereas the remote-controlled robots are used
in environments that are restricted to human beings. The manually controlled robots are widely used
for handling goods and also for transportation.
Types of Autonomous Robotic System

Out of three types of manipulation robotic system, the autonomous system is further classified into four
types:

1. Programmable: A programmable robot is a first generation robot with an actuator facility on

each joint. The robots can be reprogrammable based on the kind of application they are
commissioned to. The function and application of the robots can be changed by reprogramming
after the robot is programmed once to perform a function in the given pattern and fixed
sequence.
2. Non-programmable: This robot is one of the basic types of robot, in fact, a non-programmable
robot. This robot is not even considered as a robot but is an exploiter lacking reprogrammable
controlling device. The mechanical arms used in industries are some of the examples of these
types of robots wherein the robots are generally attached to the programmable devices used in
industries for mass production
3. Adaptive: Adaptive robots are also industrial robots that can be adapted independently to
various ranges in the process. However, these robots are more sophisticated than programmable
robots. These can be adapted up to a certain extent, and after evaluation, they can perform the
action required in that adapted area.
4. Intelligent: Intelligent robots, as the name suggests, are the most intelligent of all the other types
of robots with sensors and microprocessors for storing and processing the data. These robots
performance is highly efficient due to their situation-based analyzing and task performing
abilities. Intelligent robots can sense the senses like pain, smell, and taste and are also capable
of vision and hearing, and – in accordance, perform the actions and expressions of emotions,
thinking and learning.
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Simulation: The terms “modeling” and “simulation” are sometimes used interchangeably. In reality, they
are distinct, though related, terms.
Modelling is the representation of an object or phenomena, which is used by simulation. Models may
be mathematical, physical, or logical representations of a system, entity, phenomenon, or process.
Models are, in turn, used by simulation to predict a future state.
Examples of models:

 Mathematical model of sensor response

 Computer-aided design model of an armored vehicle or a helicopter or a human being
Modelling refers to the process of creating models.

Simulation is a representation of the functioning of a system or process. Through simulation, a model

may be implanted with unlimited variations, producing complex scenarios. These capabilities allow
analysis and understanding of how individual elements interact and affect the simulated environment.

Example of a simulation: Three-dimensional model of an armored vehicle which moves across a model
of terrain over time
The tool that executes the simulation is a "simulator".
1. Live Simulations - Real people operate in the real world.
2. Virtual Simulations - Real people operate in synthetic worlds.
3. Constructive Simulations - Simulated entities operate in synthetic worlds.
4. Undefined Simulations - Simulated entities are subjected to real-world environments.

Applications of Simulation: Experimentation, Operational Planning, Training, Missions Rehearsal,

Support to the Conduct of Operations, Life Cycle Management.
Horizontal and Vertical System Integration: System integration (SI) is an IT or engineering process or
phase concerned with joining different subsystems or components as one large system. It ensures that
each integrated subsystem functions as required. SI is also used to add value to a system through new
functionalities provided by connecting functions of different systems.

For the last decade, the aggregation of different component systems or subsystems that cooperate to
deliver a whole functionality has been the focus of industries that use technology. This is known as the
modular approach to systems building, and the SI process has always been at the near-end of the
development cycle. Because systems or subsystems to be integrated may span different fields in
software and hardware engineering, an SI engineer must have a broad range of skills and breadth of
knowledge.

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SI methods are as follows:

 Horizontal Integration: Involves the creation of a unique subsystem that is meant to be the single
interface between all other subsystems, ensuring that there is only one interface between any
subsystem and any may be replaced with another without affecting the others by using totally
different data and interfaces. This is also known as an Enterprise Service Bus (ESB).
 Vertical Integration: Subsystems are integrated according to functionality by creating "silos" of
functional entities, beginning with the bottom basic function upward (vertical). This very quick
method only involves a few vendors and developers but becomes more expensive over time
because to implement new functionalities, new silos must be created.
The Industrial Internet of Things
The Industrial Internet of Things (IIoT) is the use of Internet of Things (IoT) technologies in
manufacturing.

Also known as the Industrial Internet, IIoT incorporates machine learning and big data technology,
harnessing the sensor data, machine-to-machine (M2M) communication and automation technologies
that have existed in industrial settings for years. The driving philosophy behind the IIoT is that smart
machines are better than humans at accurately, consistently capturing and communicating data. This
data can enable companies to pick up on inefficiencies and problems sooner, saving time and money
and supporting business intelligence efforts. In manufacturing specifically, IIoT holds great potential for
quality control, sustainable and green practices, supply chain traceability and overall supply chain
efficiency.
A major concern surrounding the Industrial IoT is interoperability between devices and machines that
use different protocols and have different architectures. The non-profit Industrial Internet Consortium,
founded in 2014, focuses on creating standards that promote open interoperability and the
development of common architectures.

Cyber Security
Cybersecurity is the body of technologies, processes, and practices designed to protect networks,
computers, programs and data from attack, damage or unauthorized access. In a computing context,
security includes both cybersecurity and physical security.
Ensuring cybersecurity requires coordinated efforts throughout an information system. Elements of
cybersecurity include:

 Application security
 Information security
 Network security
 Disaster recovery/business continuity planning
 Operational security
 End-user education

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One of the most problematic elements of cybersecurity is the quickly and constantly evolving nature of
security risks. The traditional approach has been to focus most resources on the most crucial system
components and protect against the biggest known threats, which necessitated leaving some less
important system components undefended and some less dangerous risks not protected against.
The Cloud: When tech companies say your data is in the cloud, or that you can work in the cloud, it has
nothing to do with white fluffy things in the sky. Your data isn’t actually in heaven or in the wind. It has
a terrestrial home. It’s stored somewhere — lots of somewhere — and the network of servers find what
you need and deliver it.

The cloud refers to software and services that run on the Internet, instead of locally on your computer.
Most cloud services can be accessed through a Web browser like Firefox or Google Chrome, and some
companies offer dedicated mobile apps.
Some examples of cloud services include Google Drive, Apple iCloud, Netflix, Yahoo Mail, Dropbox and
Microsoft OneDrive. (There are also many, many business applications for cloud computing, but for the
purpose of this post, I’ll deal with consumer solutions.)
The advantage of the cloud is that you can access your information on any device with an Internet
connection. It’s what allows you to make edits to a file in Google Docs on your home computer, and then
pick up where you left off when you get to the office. Colleagues can even collaborate on the same
document.
Meanwhile, a service like Amazon Cloud Drive lets you store and view your entire photo collection,
without fear of maxing out your laptop or smartphone’s internal storage.
Another benefit of the cloud is that, because the remote servers handle much of the computing and
storage, you don’t necessarily need an expensive, high-end machine to get your work done. In fact, some
companies are making cloud-based computers as a low-cost option for consumers and the education
market, the most notable example of this being Google’s Chromebooks.

But the cloud has its downfalls, too. Without an Internet connection — or with a crappy one — you’re
basically locked out of accessing your data and cloud-based programs. The same applies if there are any
technical issues or outages on the server side.

Also, because your information lives online, there’s always the risk of it getting into the wrong hands. All
cloud companies have security measures in place to protect your data from hackers, but they’re not
foolproof, so it’s always a good idea to be judicious about what you want stored in the cloud versus
locally on your computer.
The forecast for cloud solutions is that we’ll be seeing a lot more of them in the future. To get better
familiarized with your options, here’s a handy guide to watching TV from the cloud, backing up and
storing photos online and online storage services.

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Additive Manufacturing

Additive Manufacturing (AM) is an appropriate name to describe the technologies that build 3D objects
by adding layer-upon-layer of material, whether the material is plastic, metal, concrete or one
day…..human tissue.
Common to AM technologies is the use of a computer, 3D modeling software (Computer Aided Design
or CAD), machine equipment and layering material. Once a CAD sketch is produced, the AM equipment
reads in data from the CAD file and lays downs or adds successive layers of liquid, powder, sheet material
or other, in a layer-upon-layer fashion to fabricate a 3D object.
The term AM encompasses many technologies including subsets like 3D Printing, Rapid Prototyping (RP),
Direct Digital Manufacturing (DDM), layered manufacturing and additive fabrication.
AM application is limitless. Early use of AM in the form of Rapid Prototyping focused on preproduction
visualization models. More recently, AM is being used to fabricate end-use products in aircraft, dental
restorations, medical implants, automobiles, and even fashion products.
While the adding of layer-upon-layer approach is simple, there are many applications of AM technology
with degrees of sophistication to meet diverse needs including:
+ a visualization tool in design
+ a means to create highly customized products for consumers and professionals alike
+ as industrial tooling
+ to produce small lots of production parts
+ one day…. production of human organs
At MIT, where the technology was invented, projects abound supporting a range of forward-thinking
applications from multi-structure concrete to machines that can build machines; while work at Contour
Crafting supports structures for people to live and work in.
Some envision AM as a complement to foundational subtractive manufacturing (removing material like
drilling out material) and to lesser degree forming (like forging). Regardless, AM may offer consumers
and professionals alike, the accessibility to create, customize and/or repair product, and in the process,
redefine current production technology.

Whether simple or sophisticated, AM is indeed AMazing and best described in the adding of layer-upon-
layer, whether in plastic, metal, concrete or one day…human tissue”.

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Augmented Reality
Augmented Reality (AR) may not be as exciting as a virtual reality roller coaster ride, but the technology
is proving itself as a very useful tool in our everyday lives.
From social media filters to surgical procedures, AR is rapidly growing in popularity because it brings
elements of the virtual world, into our real world, thus enhancing the things we see, hear, and feel.
When compared to other reality technologies, augmented reality lies in the middle of the mixed reality
spectrum; between the real world and the virtual world. An enhanced version of reality where live direct
or indirect views of physical real-world environments are augmented with superimposed computer-
generated images over a user's view of the real-world, thus enhancing one’s current perception of
reality.
Unlike virtual reality, which requires you to inhabit an entirely virtual environment, augmented reality
uses your existing natural environment and simply overlays virtual information on top of it. As both
virtual and real worlds harmoniously coexist, users of augmented reality experience a new and improved
natural world where virtual information is used as a tool to provide assistance in everyday activities.

Applications of augmented reality can be as simple as a text-notification or as complicated as an

instruction on how to perform a life-threatening surgical procedure. They can highlight certain features,
enhance understandings, and provide accessible and timely data. Cell phones apps and business
applications by companies using augmented reality are a few of the many applications driving
augmented reality application development. The key point is that the information provided is highly
topical and relevant to what you want you are doing.

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 Stocks and Trading

1. What are circuit breakers in Stock market?

Circuit breakers are measures approved by the SEBI to curb panic-selling on stock exchanges and
excessive volatility – large price swings in either direction – in individual securities. Also known as
"collars," circuit breakers temporarily halt trading on an exchange or in individual securities when
prices hit pre-defined tripwires.
The Exchange has implemented index-based market-wide circuit breakers with effect from July 02, 2001
based on SEBI Circular No. SMDRPD/Policy/Cir-37/2001 dated June 28, 2001. SEBI vide its Circular no.
CIR/MRD/DP/ 25 /2013 dated September 03, 2013 has partially modified the earlier circular. The revised
guidelines are as below.

The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either
way viz. at 10%, 15%, and 20%. These circuit breakers when triggered bring about a coordinated trading
halt in all equity and equity derivative markets nationwide. The market-wide circuit breakers are
triggered by movement of either the BSE Sensex or the Nifty 50, whichever is breached earlier. In this
regard, the Exchange has issued a circular no 85/2013 (Download No-24709) dated October 11, 2013.

The market shall re-open, after index based market-wide circuit filter breach, with a pre-open call
auction session. The extent of duration of the market halt and pre-open session is as given below:

Trigger Market halt Pre-open call auction

limit Trigger time duration session post-market halt
Before 1:00 pm. 45 Minutes 15 Minutes
At or after 1:00 pm
to 2.30 pm 15 Minutes 15 Minutes
10% At or after 2.30 pm No halt Not applicable
1 hour 45
Before 1 pm minutes 15 Minutes
At or after 1:00 pm
before 2:00 pm 45 Minutes 15 Minutes
Remainder of
15% On or after 2:00 pm the day Not applicable
Anytime during Remainder of
20% market hours the day Not applicable

55
Exchange shall compute the Index circuit breaker limits for 10%, 15%, and 20% levels on a daily basis
based on the previous day's closing level of the index rounded off to the nearest tick size.

2. How has SEBIs P Notes ban impacted the stock market?

Capital markets regulator the Securities and Exchange Board of India’s (Sebi’s) ban on holders of
participatory notes (p-notes), also called offshore derivatives instruments (ODIs), from taking
unhedged derivatives has come into effect. This means p-note holders won’t be able to take naked
exposure to the derivatives market anymore. All their existing positions will have to be squared off by
the end of 2020 or by the date of maturity of the instrument, whichever is earlier. The market
regulator has said ODI-issuing foreign portfolio investors (FPIs) will have to provide a certificate that
fresh derivatives positions are “only for hedging the equity shares on a one-to-one basis.” “The ODI-
issuing foreign portfolio investors (FPIs) shall not be allowed to issue ODIs with derivative as
underlying, with the exception of those… taken by the ODI-issuing FPI for hedging the equity
shares held by it, on a one-to-one basis,” Sebi said in a circular late Friday. “It is clarified that the term
‘hedging of equity shares’ means taking a one-to-one position in only those derivatives which have the
same underlying as the equity share,” it further said. In other words, an investor through p-notes will
be able to deal in Infosys’ derivatives contracts only if the investor holds the underlying shares of
Infosys. Last month, the Sebi board had approved the decision to bar p-notes from the derivatives
market to curb speculative trading and also to encourage overseas investors to access the
Indian markets through onshore registration. According to Sebi data, the notional value of p-note
exposure to derivatives was about Rs40,000 crore in April, down from Rs54,000 crore in March.

The share of p-notes in the overall FPI investment pie has come down from around 10 percent a year
ago to just six percent. This is following continuous tightening of the p-note framework by Sebi.“The
ODI issuance has reduced significantly in the recent years. The additional restriction will further impact
ODI issuance and thereby market liquidity.

This could also possibly lead to export of Indian capital market to other countries. Industry players who
were accessing Indian market through ODI route for a variety of reasons may now be forced to come
to India directly and the number of FPI registration is also likely to go up,” said Suresh Swamy, partner,
PwC. While Sebi on one had has been tightening p-note regulations, it has also been easing
the FPI registration norms to facilitate easier entry. Sebi had recently floated a discussion paper to
further ease of FPI entry norms. Meanwhile, some experts said there is a small window for p-notes to
take unhedged positions. “A p-note holder will be able to take unhedged derivative position if the
issuing FPI has exposure to the stock. This is because the calculation is being done at FPI level and not
at individual p-note holder level,” said an industry expert.For instance, the same FPI has issued p-notes
to subscriber A and B. A owns shares of Infosys and B doesn’t. This could potentially enable B to take
derivative exposure to Infosys based on A’s underlying holdings.

3. What impact would the implementation of long-term capital gains tax have on the market?

Talks of long-term capital gains tax (LTCG) has equity markets worried, but sentiments may not be
impacted purely due to its imposition. A key reason for LTCG not adversely affecting markets is that it
56
may not be a retrospective tax. More, there is a sense that government has been taking extra care not
to spoil equity market sentiment and hence, it may not impose LTCG in a manner that could hit market
sentiments, experts said.

Imposition of LTCG is being actively discussed by the government and an announcement could be likely
in the Budget on February 1. There are several options that are being discussed by officials working on
preparing the Budget.

A key option is to keep the LTCG tax rate low between 5-10 percent and raise it later post-2019
national elections. It is the same way the then Finance Minister P Chidambaram introduced short-term
capital gains tax at 10 percent and later raised it to 15 percent. There is a belief that if LTCG is not
retrospective and introduced at a lower rate, it may not hurt investor sentiment. The idea is to protect
past investments and save the markets from negative cues, the source said.

Bringing FPIs under LTCG net

The sources further said the government was eager to bring the tax as it wanted to build a narrative
ahead of the elections that it was ready to tax wealthy traders and even foreign portfolio investors
(FPIs). How much revenue LTCG may generate in the initial years is still being debated within the
government and tax authority circles. Most FPIs pay very little or no tax as they are exempt from short-
term tax on derivatives if their funds come via treaty country.

Short-term capital gains from equity holding for less than a year are taxed at 15 percent. Gains
from shares sold after a year, known as LTCG, have been exempt from tax since 2005. The LTCG
exemption was intended to promote equity investments, but the Direct Taxes Code (DTC) framework,
re-drafted in 2009, proposed an elimination of this distinction.Another option being discussed by the
government this year is to raise the equity holding period for LTCG to three years.

4. Differentiate between fundamental and technical analysis.

Technical analysis and fundamental analysis are the two main schools of thought when it comes to
analyzing the financial markets. As we’ve mentioned, the technical analysis looks at the price
movement of a security and uses this data to predict future price movements. Fundamental analysis
instead looks at economic and financial factors that influence a business. Let’s dive deeper into the
details of how these two approaches differ, the criticism against technical analysis, and how technical
and fundamental analysis can be used together.

The Differences

Technical analysts typically begin their analysis with charts, while fundamental analysts start with a
company’s financial statements.

Fundamental analysts try to determine a company’s value by looking at its income statement, balance
sheet, and cash flow statement. In financial terms, the analyst tries to measure a company’s intrinsic
value by discounting the value of future projected cash flows to a net present value. A stock price that
trades below a company’s intrinsic value is considered a good investment opportunity and vice versa.
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Technical analysts believe that there’s no reason to analyze a company’s financial statements since the
stock price already includes all relevant information. Instead, the analyst focuses on analyzing the
stock chart itself for hints into where the price may be headed.

Time Horizon

Fundamental analysis takes a long-term approach to investing compared to the short-term approach
taken by technical analysis. While stock charts can be delimited in weeks, days, or even minutes,
fundamental analysis often looks at data over multiple quarters or years.

Fundamentally-focused investors often wait a long time before a company’s intrinsic value is reflected
in the market. For example, value investors assume that the market is mispricing a security over the
short-term, but that the price of the stock will correct itself over the long run. This “long run” can
represent a timeframe as long as several years, in some cases.

Fundamentally-focused investors also rely on financial statements that are filed quarterly, as well as
changes in earnings per share that don’t emerge on a daily basis like price and volume information.
After all, a company can’t implement sweeping changes overnight and it takes time to create new
products, marketing campaigns, and other strategies to turn around or improve a business. Part of the
reason that fundamental analysts use a long-term timeframe, therefore, is because the data they use
to analyze a stock is generated much more slowly than the price and volume data used by technical
analysts.

Trading v. Investing

Technical analysis and fundamental analysis have different goals in mind. Technical analysts try to
identify many short- to medium-term trades where they can flip a stock, while fundamental analysts
try to make long-term investments in a stock’s underlying business. A good way to conceptualize the
difference is to compare it to someone buying a home to flip versus someone that’s buying a home to
live in for years to come.

The Critics

Many critics view technical analysis as unproven at best or wishful thinking at worst. Don’t be
surprised to hear these critics question the validity of the discipline to the point where they mock
supporters. While most Wall Street analysts focus on the fundamentals, just about any major
brokerage employs technical analysts. There are also professional certifications for technical analysts
and some techniques are included in the CFA exam, among others.

Much of the criticism of technical analysis is focused on the Efficient Market Hypothesis, which states
that any past trading information is already reflected in the price of the stock. Taken to the extreme,
the ‘strong form efficiency’ hypothesis states that both technical and fundamental analysis are useless
because all information in the market is accounted for in a stock’s price. This thinking is explained in
detail in books like a Random Walk Down Wall Street, which states that an investor is better off
guessing than stock picking.
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Can They Co-Exist?

Technical analysis and fundamental analysis are often seen as opposing approaches to analyzing
securities, but many investors have experienced success by combining the two techniques. For
example, an investor may use fundamental analysis to identify an undervalued stock and use technical
analysis to find a specific entry and exit point for the position. Often times, this combination works
best when a security is severely oversold and entering the position too early could prove costly.

Alternatively, some primarily technical traders will look at fundamentals to support their trade. For
example, a trader may be eyeing a breakout near an earnings report and look at the fundamentals to
get an idea of whether the stock is likely to beat earnings.

The idea of mixing technical and fundamental analysis isn’t always well-received by the most devoted
groups in each school, but there are certainly benefits to at least understanding both schools of
thought.

5. What are the two major stock exchanges in India and differentiate between the two?

In India, there are two major stock exchanges, Bombay Stock Exchange, and National stock
exchange. Bombay Stock Exchange is shortly known as BSE; it is the first stock exchange of the
continent.On the contrary, National Stock Exchange, abbreviated as NSE is the first stock exchange
which introduced an advanced electronic trading system in the country.

Comparison Chart
BASIS FOR
BSE NSE
COMPARISON

Introduction Bombay Stock Exchange is National Stock Exchange is the biggest

the oldest financial market in
the country, which offers
high-speed trading to its
customers.
capital market of the country. The
exchange is a front-runner in the
introduction of the fully automated,
electronic trading system across the
nation.

Founded in 1875 1992

Benchmark index Sensex Nifty

59
 BASIS FOR
BSE NSE
COMPARISON

Total listed 5650 1740

companies (April
2015)

Market Around 1.68 trillion Around 1.5 trillion

Capitalization

Global Rank 10th 11th

Network Over 400 cities Over 2000 cities

About Bombay Stock Exchange (BSE)

Bombay Stock Exchange is the ancient securities exchange of the continent, formerly known by the
name of ‘The Native Share & Stock Brokers Association’ in the year 1875.

In 1957, BSE was recognized by the Central Government of India as the premier Stock Exchange of the
country, under the Securities Contract Regulation Act, 1956. SENSEX is introduced, as a first equity
index in 1986 to provide a base for identifying the top 30 trading companies of the exchange, in more
than 10 sectors. In the year 1995, BSE Online Trading System (BOLT) was started. The Association of
person is converted into a Separate Legal Entity with the name of Bombay Stock Exchange Limited, in
2005.

On the basis of registered members, it stood first in the list of top stock exchanges across the world. It
offers a diversified range of services in various areas like depository services through CDSL (Central
Depository Services Limited), risk management, market data services, etc. BSE Institute Limited is one
of the renowned capital market educational institute of Bombay Stock Exchange.

About National Stock Exchange (NSE)

National Stock Exchange is the youngest stock exchange of the country which came into force in the
year 1992. At the time of its establishment, it introduced the advanced electronic trading system for
the very first time in the country which removed the paper-based settlement system.

The promotion of NSE is done by top financial institutions of the country and the world as well, on the
recommendation of Indian Government in order to bring transparency and integrity in the securities
exchange system on the Stock Market. In 1992, NSE was set up as a tax paying company which later on
registered as a Stock Exchange under the Securities Contract Regulation Act, 1956, in the year 1993. In

60
1995, National Securities Depository Limited (NSDL) was formed to provide depository services to the
investors.

Nifty is the popular index, which was introduced by National Stock Exchange in 1995, to act as a basis
for measuring the performance of the exchange. It lists out top 50 companies which traded on the
exchange.

6. Define derivatives. What are the types of derivatives traded in Indian markets?

A derivative is a security with a price that is dependent upon or derived from one or more underlying
assets. The derivative itself is a contract between two or more parties based on the asset or assets. Its
value is determined by fluctuations in the underlying asset. The most common underlying assets
include stocks, bonds, commodities, currencies, interest rates and market indexes.

Derivatives can either be traded over-the-counter (OTC) or on an exchange. OTC derivatives constitute
the greater proportion of derivatives in existence and are unregulated, whereas derivatives traded on
exchanges are standardized. OTC derivatives generally have a greater risk for the counterparty than do
standardized derivatives.

Futures
A futures contract is an agreement between two parties in which the buyer agrees to buy an
underlying asset from the seller, at a future date at a price that is agreed upon today. However, unlike
a forward contract, a futures contract is not a private transaction but gets traded on a recognized stock
exchange. In addition, a futures contract is standardized by the exchange. All the terms, other than the
price, are set by the stock exchange (rather than by individual parties as in the case of a forward
contract). Also, both buyer and seller of the futures contracts are protected against the counterparty
risk by an entity called the Clearing Corporation. The Clearing Corporation provides this guarantee to
ensure that the buyer or the seller of a futures contract does not suffer as a result of the counterparty
defaulting on its obligation. In case one of the parties defaults, the Clearing Corporation steps in to
fulfill the obligation of this party, so that the other party does not suffer due to non-fulfillment of the
contract. To be able to guarantee the fulfillment of the obligations under the contract, the Clearing
Corporation holds an amount as a security from both the parties. This amount is called the Margin
money and can be in the form of cash or other financial assets. Also, since the futures contracts are
traded on the stock exchanges, the parties have the flexibility of closing out the contract prior to the
maturity by squaring off the transactions in the market.

Options
Like futures, options are derivative instruments that provide the opportunity to buy or sell an
underlying asset on a future date.
An option is a derivative contract between a buyer and a seller, where one party (say
First Party) gives to the other (say Second Party) the right, but not the obligation, to buy from (or sell
to) the First Party the underlying asset on or before a specific day at an agreed-upon price. In return
for granting the option, the party granting the option collects a payment from the other party. This
payment collected is called the ―premium or price of the option. The right to buy or sell is held by the
―option buyer (also called the option holder); the party granting the right is the ―option seller or
61
―option writer. Unlike forwards and futures contracts, options require a cash payment (called the
premium) upfront from the option buyer to the option seller. This payment is called option premium
or option price. Options can be traded either on the stock exchange or in over the counter (OTC)
markets. Options traded on the exchanges are backed by the Clearing Corporation thereby minimizing
the risk arising due to default by the counterparties involved. Options traded in the OTC market,
however, are not backed by the Clearing Corporation.
There are two types of options—call options and put options—which are explained below.

Call option
A call option is an option granting the right to the buyer of the option to buy the underlying asset on a
specific day at an agreed upon price, but not the obligation to do so. It is the seller who grants this
right to the buyer of the option. It may be noted that the person who has the right to buy the
underlying asset is known as the ―buyer of the call option.
The price at which the buyer has the right to buy the asset is agreed upon at the time of entering the
contract. This price is known as the strike price of the contract (call option strike price in this case).

Since the buyer of the call option has the right (but no obligation) to buy the underlying asset, he will
exercise his right to buy the underlying asset if and only if the price of the underlying asset in the
market is more than the strike price on or before the expiry date of the contract. The buyer of the call
option does not have an obligation to buy if he does not want to.

Put option
A put option is a contract granting the right to the buyer of the option to sell the underlying asset on or
before a specific day at an agreed upon price, but not the obligation to do so. It is the seller who grants
this right to the buyer of the option.
The person who has the right to sell the underlying asset is known as the ―buyer of the put option.
The price at which the buyer has the right to sell the asset is agreed upon at the time of entering the
contract. This price is known as the strike price of the contract (put option strike price in this case).

Since the buyer of the put option has the right (but not the obligation) to sell the underlying asset, he
will exercise his right to sell the underlying asset if and only if the price of the underlying asset in the
market is less than the strike price on or before the expiry date of the contract. The buyer of the put
option does not have the obligation to sell if he does not want to.

7. Explain split and bonus issue with respect to shares with the help of examples.

A stock split is a corporate action in which a company divides its existing shares into multiple shares to
boost the liquidity of the shares. Although the number of shares outstanding increases by a specific
multiple, the total dollar value of the shares remains the same compared to pre-split amounts,
because the split does not add any real value. The most common split ratios are 2-for-1 or 3-for-1,
which means that the stockholder will have two or three shares, respectively, for every share held
earlier.

A stock split is also known as a forward stock split. In the UK, a stock split is referred to as a scrip issue,
bonus issue, capitalization issue, or free issue.
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 When a stock split is implemented, the price of shares adjusts automatically in the markets. A
company's board of directors makes the decision to split the stock into any number of ways. For
example, a stock split may be 2-for-1, 3-for-1, 5-for-1, 10-for-1, 100-for-1, etc. A 3-for-1 stock split
means that for every one share held by an investor, there will now be three. In other words, the
number of outstanding shares in the market will triple. On the other hand, the price per share after the
3-for-1 stock split will be reduced by dividing the price by 3. This way, the company's overall value,
measured by the market capitalization, would remain the same.

Market capitalization is calculated by multiplying the total number of shares outstanding by the
price per share. For example, assume that XYZ Corp. has 20 million shares outstanding and the shares
are trading at $100. Its market cap will be 20 million shares x $100 = $2 billion. Let's say the company’s
board of directors decides to split the stock 2-for-1. Right after the split takes effect, the number of
shares outstanding would double to 40 million, while the share price would be halved to $50, leaving
the market cap unchanged at 40 million shares x $50 = $2 billion.

Reasons for a Forward Stock Split

Why do companies go through the hassle and expense of a stock split? For a couple of very
good reasons. First, a split is usually undertaken when the stock price is quite high, making it pricey for
investors to acquire a standard board lot of 100 shares. For example, Apple Inc. issued a 7-for-1 stock
split in 2014 after its share price had climbed to almost $700 per share. The board of directors figured
that the price was too high for the average retail investor and implemented the stock split to make the
shares more accessible to a wider set of potential shareholders. The stock price closed at $645 the day
before the split was activated. At market open, Apple's shares were trading at approximately $92, the
adjusted price after the 7-for-1 stock split.

Second, the higher number of shares outstanding can result in greater liquidity for the stock, which
facilitates trading and may narrow the bid-ask spread. Increasing the liquidity of a stock makes trading
in the stock easier for buyers and sellers. Liquidity provides a high degree of flexibility in which
investors can buy and sell shares in the company without making too great an impact on the share
price.

While a split, in theory, should have no effect on a stock's price, it often results in renewed investor
interest, which can have a positive impact on the stock price. While this effect can be temporary, the
fact remains that stock splits by blue-chip companies are a great way for the average investor to
accumulate an increasing number of shares in these companies. Many of the best companies routinely
exceed the price level at which they had previously split their stock, causing them to undergo a stock
split yet again.

What is a 'Bonus Issue'

A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free
additional shares to existing shareholders. A company may decide to distribute further shares as an
alternative to increasing the dividend payout. For example, a company may give one bonus share for
every five shares held.

63
BREAKING DOWN 'Bonus Issue'
Bonus issues are given to shareholders when companies are short of cash and shareholders
expect a regular income. Shareholders may sell the bonus shares and meet their liquidity needs. Bonus
shares may also be issued to restructure company reserves. Issuing bonus shares does not involve cash
flow. It increases the company’s share capital but not its net assets.

Bonus shares are issued according to each shareholder’s stake in the company. For example, a three-
for-two bonus issue entitles each shareholder three shares for every two they hold before the issue. A
shareholder with 1,000 shares receives 1,500 bonus shares (1000 x 3 / 2 = 1500).

Advantages and Disadvantages of Issuing Bonus Shares

Companies low on cash may issue bonus shares rather than cash dividends as a method of
providing income to shareholders. Because issuing bonus shares increases the issued share capital of
the company, the company is perceived as being bigger than it really is, making it more attractive to
investors. In addition, increasing the number of outstanding shares decreases the stock price, making
the stock more affordable for retail investors.

However, issuing bonus shares takes more money from the cash reserve than issuing dividends
does. Also, because issuing bonus shares does not generate cash for the company, it could result in a
decline in the dividends per share in the future, which shareholders may not view favorably. In
addition, shareholders selling bonus shares to meet liquidity needs lowers shareholders' percentage
stake in the company, giving them less control over how the company is managed.

Stock Splits and Bonus Shares

Stock splits and bonus shares have many similarities and differences. When a company declares
a stock split, the number of shares increases, but the investment value remains the same. Companies
typically declare a stock split as a method of infusing additional liquidity into shares, increasing the
number of shares trading and making shares more affordable to retail investors.

When a stock is split, there is no increase or decrease in the company's cash reserves. In contrast,
when a company issues bonus shares, the shares are paid for out of the cash reserves, and the
reserves deplete.

8. What is an IPO? Evaluate the pros and cons of a company going public.

An initial public offering (IPO) is the first time that the stock of a private company is offered to the
public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can
also be done by large privately owned companies looking to become publicly traded. In an IPO,
the issuer obtains the assistance of an underwriting firm, which helps determine what type of security
to issue, the best offering price, the amount of shares to be issued and the time to bring it to market.

An IPO is also referred to as a public offering. When a company initiates the IPO process, a very specific
set of events occurs. The chosen underwriters facilitate all of these steps.
• An external IPO team is formed, consisting of an underwriter, lawyers, certified public accountants
(CPAs) and Securities and Exchange Commission (SEC) experts.
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• Information regarding the company is compiled, including financial performance and expected future
operations. This becomes part of the company prospectus, which is circulated for review.
• The financial statements are submitted for official audit.
• The company files its prospectus with the SEC and sets a date for the offering.

The Risk of Investing in an IPO

IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do
on its initial day of trading and in the near future because there is often little historical data to use to
analyze the company. Also, most IPOs are for companies that are going through a transitory growth
period, which means that they are subject to additional uncertainty regarding their future values.

Example of an IPO
The rate of company IPOs often depends on macroeconomic factors as well as internal needs to raise
capital.

The company is issuing roughly 11 million shares of its own common stock, and current shareholders
are selling just over 7.5 million shares of common stock. Public offering price per share is expected to
be around $20, raising total funds of around $400 million.

The biggest benefit of an IPO is the capital raised. It can fund research and development, or pay
expenses and debt. IPOs often generate publicity, introducing products to consumers who may not
otherwise have heard of them. Eventually, that leads to increases in market share. IPOs can also
provide company founders with an exit strategy, letting them cash in on their hard work and success.

But when going public, companies must make extensive disclosures and submit to stringent
regulations. The costs of complying with SEBI rules and regulations are high and getting higher. New
fees for things like financial reporting documents and investor relations departments are increasing
the price tag.

Market pressures often compel public companies to focus on short-term results instead of long-term
growth. Investors that want to see rising profits often scrutinize management’s actions. And
sometimes, management behaves questionably in order to boost those earnings.Before going public, a
company should weigh the advantages and disadvantages to determine if it’s the right move to make.

9. Explain the role of SEBI in the functioning of exchanges in India

The Securities and Exchange Board of India (SEBI) is the designated regulatory body for the finance
and investment markets in India. The board plays a vital role in maintaining stable and efficient
financial and investment markets by creating and enforcing effective regulation in India's financial
marketplace.

The SEBI was established in 1988 but was only given regulatory powers on April 12, 1992, through the
Securities and Exchange Board of India Act, 1992. It plays a key role in ensuring the stability of
the financial markets in India, by attracting foreign investors and protecting Indian investors. SEBI was

65
built by the government of India. Its headquarters is located at the Bandra Kurla Complex Business
District found in Mumbai. It also has northern, eastern, southern and western regional offices.

SEBI's management is composed of its own members. Its management team consists of a chairman
nominated by the Union Government of India, two members who are officers from the Union Finance
Ministry, one member from the Reserve Bank of India and five other members who are also nominated
by the Union Government of India.

Functions and Responsibilities

SEBI's Preamble describes in detail the functions and powers of the board. Its Preamble states that
SEBI must "protect the interests of investors in securities and to promote the development of, and to
regulate the securities market and for matters connected therewith or incidental thereto." In this light,
as a board, SEBI must be responsive and proactive to the needs and interest of the groups that
constitute India's financial and investment markets: the investors, the market intermediaries and the
issuers of securities.

SEBI is allowed to approve by-laws of stock exchanges. It is its job to require the stock exchange to
follow its by-laws. SEBI also inspects the books of accounts of financial intermediaries and asks for
regular returns from recognized stock exchanges. SEBI's role covers compelling particular companies to
list their shares in stock exchanges. Aside from these, SEBI is tasked to manage the registration
of brokers.

Ultimately, the board has three powers: quasi-judicial, quasi-legislative and quasi-executive. SEBI has
the right to draft regulations under its legislative capacity, conduct investigations and impose action
under its executive function, and pass new rules and orders under its judicial capacity. Despite these
powers, the results of SEBI's functions still have to go through the Securities Appellate Tribunal and the
Supreme Court of India.

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 General Knowledge
1. Which smartphone company overtook Samsung to become the largest selling smartphone by
volume in Q4 2017 in India?

A. Oppo
b. Xiaomi
c. Vivo
d. Lenovo

2. Which cryptocurrency exchange based out of Japan was hacked and has now decided to make
good the loss to the investors from its own equity?

3. What app did Google develop when it found out that many smartphones are getting frozen in
India because of too many ‘Good morning’ messages?

4. What promise has Starbucks CEO Schulz made as a mark of protest against the immigration ban
order of Trump admin?

5. Trump admin has issued an executive order. Immigration from 7 countries has been stopped.
Steve Jobs’ father was an immigrant from which one?

6. The Hollywood movie The Founder is a biopic of which entrepreneur and his company?

7. What is Bharat QR?

Ans:

BharatQR, developed by NPCI, Mastercard, and Visa, is an integrated payment system in India.
The system, which was launched in September 2016, facilitates users to transfer their money
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 from one source to another. The money transferred through BharatQR is received directly in
the user's linked bank account. It provides a common interface for American Express, Visa,
Mastercard, and RuPay cards.

8. Which company sued the makers of Jolly LLB 2 because it shows their brand of footwear as a
downmarket brand?

9. Why has Hindustan Unilever filed a case against Amul for misleading advertisements?

Ans:

Amul advertisements say that their ice-creams are made of real milk, whereas frozen desserts
(such as Kwality walls of HUL) are made of vanaspati. HUL says that this was misleading and
hence objectionable.

10. What is unique about the payment wallet Hipbar that has got an RBI license recently?
Ans:
It is the wallet which allows paying for liquor only

11. Steve Jobs visited Kainchi Dham in India searching for meaning and peace before he started
Apple. Many years later, he advised another start-up founder to go and visit the place. Who
was that CEO?

12. He was an American inventor best known for his works on AC currents. He was also a
contemporary of Thomas Edison. Currently one of the most famous automobile companies in
the US bears his name. Who was he?

13. Identify this retail pioneer in India. He set up Foodworld, MusicWorld, Health and Glow as CEO
Spencer. He passed away this year. RIP

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14. This is only the second occasion that Bank of England has issued a currency note with a
woman’s photo on it. Who is the person honored?

15. Indian Hotels has a new CEO Puneet Chhatwal. He has been given the task of making Taj Group
a leader in India once again. Which chain is # 1 in India now?

16. Which chain has started a cryptocurrency called Whoppercoin in Russia?

17. To whom has the founders of the startup Springpath sold their firm for nearly 2000 crore
Rupees?

18. In the season of SUV launches, Tatas have launched Nexon, Renault – Captur, who launched
Kodiaq?

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19. What new service has Amazon announced in the US which allows delivery of packages inside
the house when no one is there to receive?

20. Explain the composition of the Lok Sabha, in terms of a number of members and how there are
elected.

Ans:

Lok Sabha is composed of representatives of the people chosen by direct election on the basis
of the adult suffrage. The maximum strength of the House envisaged by the Constitution is 552,
which is made up by election of up to 530 members to represent the States, up to 20 members
to represent the Union Territories and not more than two members of the Anglo-Indian
Community to be nominated by the Hon'ble President, if, in his/her opinion, that community is
not adequately represented in the House. The total elective membership is distributed among
the States in such a way that the ratio between the number of seats allotted to each State and
the population of the State is, so far as practicable, the same for all States.

21. Explain the composition of the Rajya Sabha, in terms of a number of members and how there
are elected.
Ans:
Article 80 of the Constitution lays down the maximum strength of Rajya Sabha as 250, out of
which 12 members are nominated by the President and 238 are representatives of the States
and of the two Union Territories.

22. Recently Saudi Arabia gave citizenship to Sophia. What is special or unique about this?
Ans:
Sophia is a robot and this is the first occasion a robot has been given citizenship by any country
23. In what product category has Timex launched Timex Blink in India recently?

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 24. What do you mean by GDP?

Ans:

Gross domestic product (GDP) is a monetary measure of the market value of all final goods and
services produced in a period (quarterly or yearly) of time

ANSWER KEY
1. Xiaomi
2. Coincheck
3. Files Go
4. Hiring 10,000 refugees in the next 5 years
5. Syria
6. Ray Kroc, McDonald's
9. Bata
12. Mark Zuckerberg
13. Nikolas Tesla. Tesla Motors is named after him.
14. P.K.Mohapatra
15. Jane Austen
16. Starwood-Marriott
17. Burger King
18. CISCO
19. Skoda
20. Amazon Key
25. Wearable Fitness tracker

Management reading suggestions

1. Freakonomics, by Steven D. Levitt and Stephen J. Dubner
2. The Tipping Point, by Malcolm Gladwell
3. The Black Swan, by Nassim Nicholas Taleb
4. The World Is Flat, by Thomas Friedman
5. Thinking, Fast and Slow, by Daniel Kahneman
6. Odyssey: Pepsi to Apple, an autobiography by John Sculley
7. Behind the Arches, by John F. Love
8. Seven Habits of Highly Effective People, by Steven Covey
9. Maximum Achievement, by Brain Tracy
10. Who Moved My Cheese? by Spencer Johnson

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Few important abbreviations
1. UTI Unit Trust of India
2. STCI Securities Trading Corporation of India Ltd.
3. IDBI Industrial Development Bank of India
4. IRBI Industrial Reconstruction Bank of India
5. EXIM Bank Export – Import Bank of India
6. SIDBI Small Industries Development Bank of India
7. NABARD National Bank for Agriculture and Rural Development
8. LIC Life Insurance Corporation of India
9. SCICI Shipping Credit and Investment Company of India Ltd.
10. HUDCO Housing and Urban Development Corporation Ltd.
11. NHB National Housing Bank
12. IFCI Industrial Finance Corporation of India
13. GIC General Insurance Corporation of India
14. RCTC Risk Capital and Technology Finance Corporation Ltd
15. TDICI Technology Development and Information Company of India Ltd.
16. TFCI Tourism Finance Corporation of India Ltd.
17. DFHI Discount and Finance House of India Ltd.
18. IREDA Indian Renewable Energy Development Agency Ltd.
19. PFC Power Finance Corporation Ltd.
20. REC Rural Electrification Corporation Ltd.
21. IRFC Indian Railways Finance Corporation Ltd.
22. IDFC Infrastructure Development Finance Co. Ltd.

1. NITI National Institution for Transforming India

2. PRAGATI Pro-Active Governance and Timely Implementation
3. PahaL Pratyaksha Hastaantarit Laabh
4. HRIDAY Heritage Development and Augmentation Yojana
5. EEU Eurasian Economic Union
6. NSM National Supercomputing Mission
7. AMRUT Atal Mission for Rejuvenation and Urban Transformation
8. MRT Mitochondrial Replacement Therapy
9. BOSS Bharat Operating System Solutions
10. NMET National Mineral Exploration Trust
11. UPI Unified Payment Interface
12. TLCs Tech Learning Centres
13. JAM Jan Dhan, Aadhar and Mobile
14. PSF Price Stabilization Fund
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 15. POTUS President of the United States
16. Ind AS Indian Accounting Standards
17. AVAM AAP Volunteer Action Manch
18. NERPAP National Electoral Roll Purification and Authentication Program
19. IRNSS Indian Regional Navigation Satellite System
20. DAY Deen Dayal Upadhyay Antyodaya Yojana
21. MHFA Mission Housing for All Urban
22. DI Digital India
23. MII Make in India
24. SIMo Skill India Mission Operation
25. MUDRA MUDRA Bank Youjana
26. DDUGJY Deen Dayal Upadhyay Gram Jyoti Yojana
27. PMKSY Pradhan Mantri Krishi Sinchai Yojana
28. SHC Soil Health Card Scheme
29. BBBP Beti Bachao, Beti Padhao
30. DBTSK Direct Benefit Transfer Scheme for Kerosene
31. SBM Swacch Bharat Mission
32. PMSBY Pradhan Mantri Suraksha Bima Yojana
33. PMJJBY Pradhan Mantri Jeevan Jyoti Bima Yojana
34. APY Atal Pension Yojana
35. SCM Smart Cities Mission
36. NMCG National Mission for Clean Ganga
37. PMFBY Pradhan Mantri Fasal Bima Yojana
38. SPMRM Shyama Prasad Mukherji Rurban Mission
39. PMUY Pradhan Mantri Ujjawala Yojana

Awards and recognitions

1. David Grossman, A Horse Walks Into a Bar Man Booker International
Prize, 2017
2. Illaiyaraja, Ghulam Mustafa Khan, P. Parameswaran Padma Vibhushan (2018)
3. Pankaj Advani, Philipose Mar Chrysostom, Padma Bhushan (2018)
Mahendra Singh Dhoni, Alexander Kadakin
(Foreigner/Posthumous), R. Nagaswamy, Ved
Prakash Nanda (Overseas Citizen of India), Laxman
Pai, Arvind Parikh, Sharda Sinha
4. Abhay and Rani Bang, Damodar Ganesh Bapat, Padma Shri (2018)
Prafulla Govinda Baruah, Mohan Swaroop Bhatia,
Sudhanshu Biswas, Saikhom Mirabai Chanu, Pandit
Shyamlal Chaturvedi, Jose Ma Joey Concepcion III

73
 (Foreigner), Langpoklakpam Subadani Devi, Somdev
Devvarman
5. Kazuo Ishiguro Nobel prize in literature
(2017)
6. International Campaign to Abolish Nuclear Nobel Peace Prize (2017)
Weapons (ICAN)
7. "24K Magic" – Bruno Mars Record of the year, Grammy
awards (2018)
8. "24K Magic" – Bruno Mars Album of the year, Grammy
awards (2018)
9. Moonlight Best Picture, Academy
awards (2017)
10. Emma Stone Best Actress for La La Land,
Academy awards (2017)

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 Current Affairs
Ease of doing business
The ease of doing business index is an index created by Simeon Djankov at the World Bank Group. It is
an aggregate figure that includes different parameters which define the ease of doing business in a
country.
The various parameters on which the index is calculated are:
 Starting a business  Protecting investors
 Dealing with construction permits  Paying taxes
 Getting electricity  Trading across borders
 Registering property  Enforcing contracts
 Getting credit  Resolving insolvency

Top 10 as of 2018 :
1. New Zealand 2. Singapore
3. Denmark 4. Korea, Rep.
5. Hong Kong SAR, China 6. United States
7. United Kingdom 8. Norway
9. Georgia 10. Sweden

India’s position:
Topics 2018
Rank
Overall 100
Starting a Business 156
Dealing with Construction 181
Permits
Getting Electricity 29
Registering Property 154
Getting Credit 29
Protecting Minority Investors 4
Paying Taxes 119
Trading across Borders 146
Enforcing Contracts 164
Resolving Insolvency 103

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More reading: http://www.thehindubusinessline.com/economy/policy/india-makes-it-to-top-100in-
ease-of-doing-business/article9935450.ece

Paris Climate Accord

2015 Paris Climate Accord is a voluntary, non-binding agreement and allows participant countries to
set their own carbon emission goals, deadlines and carbon reduction strategies and was signed by 195
countries to reduce greenhouse gas emissions.
The Paris Climate Accord was designed to prevent the average global surface temperature from
warming beyond 1.5॰ Celsius beyond preindustrial levels. Warming beyond that “danger point” has
been predicted to bring about a significant rise in sea level, longer droughts, and greater severe
weather.
On June 1, 2017, United States President Donald Trump announced that the U.S. would cease all
participation in the 2015 Paris Agreement on climate change mitigation stating "The Paris accord will
undermine (the U.S.) economy," and "puts (the U.S.) at a permanent disadvantage."
The earliest possible effective withdrawal date by the United States cannot be before November 4,
2020
French President Emmanuel Macron, German Chancellor Angela Merkel, and Italian President Sergio
Mattarella issued a joint statement indicating that they did not intend to renegotiate. The U.S. will join
Nicaragua and Syria as the only countries that are not signatories of the agreement.
Two business leaders resigned from Trump advisory boards in protest to his decision to withdraw. Elon
Musk, CEO of Tesla, Inc., and SpaceX, resigned from the two presidential advisory councils on which he
had sat. Musk stated: "Climate change is real. Leaving Paris is not good for America or the world."
Robert Iger, CEO of The Walt Disney Company, also resigned, saying "As a matter of principle, I've
resigned from the President's Council over the Paris Agreement withdrawal."
Additional readings :
http://www.pbs.org/newshour/extra/2017/06/10-facts-about-the-u-s-exit-from-the-paris-climate-
agreement/
http://www.ajc.com/news/world/what-the-paris-climate-agreement-things-you-should-
know/zG6aSruOocgyOvTd4VnPTM/

H1B Visa
The H-1B is a visa in the United States which allows U.S. employers to employ foreign workers on a
temporary basis in jobs that require highly specialized knowledge and a bachelor’s degree or higher.
Almost 1.8 million H-1B visas have been distributed in fiscal years 2001 through 2015, according to a
Pew Research Center analysis of government data.

76
More than half of all H-1B visas have been awarded to Indian nationals. From fiscal years 2001 to 2015,
workers from India received the largest share (50.5%) of all H-1B visas for first-time employment, while
the second-largest share went to workers from China (9.7%).
Benefits the tech industry enormously, and other sectors, including healthcare, science, and finance,
have also used it to fill gaps in their workforces.
In 2017, the U.S. Congress considered more-than-doubling the "minimum wage"
In April 2017, President Trump signed an executive order that will put H-1B and similar programs under
new scrutiny. Titled “Buy American and Hire American,” it directs federal agencies to review whether
existing policies adequately prioritize American products and protect American workers.
On January 9, 2018, United States Citizenship and Immigration Services said that it is not considering
any proposal that would force H-1B visa holders to leave the United States during the green-card
process. United States Citizenship and Immigration Services said an employer could request extensions
in one-year increments under section 106(a)-(b) of the American Competitiveness in the 21st Century
Act instead.
Additional Reading :
https://hbr.org/2017/05/the-h-1b-visa-debate-explained
http://www.pewresearch.org/fact-tank/2017/04/27/key-facts-about-the-u-s-h-1b-visa-program/

Air India Sale

The Union Cabinet on June 28 gave its ‘in-principle’ nod to divest stakes in Air India — a wholly owned
government airline. Air India’s privatization was first proposed in 2000 when the previous National
Democratic Alliance (NDA) government decided to sell 51% of equity of the erstwhile domestic airline
Indian Airlines, with 26% stake to a strategic partner. The move was dropped after opposition from the
then Civil Aviation Minister Sharad Yadav.
Primary causes for the steps are the eroding market share, continuous losses and a mountain of debts.
Air India has not registered profit since over a decade after the merger of the erstwhile Indian Airlines
(domestic operations) with Air India (international operations) in 2007. The primary reason was the
government’s inability to cope with its debt of ₹52,000 crore. Around ₹22,000 crore of the total debt
accounts for aircraft acquisition loan and the rest is related to debt for meeting its daily and
operational expenses.
India’s largest low-cost airline IndiGo has expressed formal interest to the Civil Aviation Ministry in
taking over the international operations of Air India. Companies like Bird Group and Celebi — both of
which are involved in ground handling — have shown interest in that part of Air India's business.
Air India has a total debt of about Rs 48,877 crore at the end of March 2017, of which about Rs 17,360
crore were aircraft loans and Rs 31,517 crores were working capital loans. The airline is expected to
report a net loss of Rs 3,579 crore for 2017-18, as per budget estimates projected for 2017 -18 from a
provisional net loss of Rs 3,643 crore for 2016-17. The airline is projected to increase its operating

77
profit to Rs 531 crore (BE projected) for 2017-18 from a provisional operating profit of Rs 215 crore for
2016-17, as per latest figures tabled in Parliament.

Additional Reading :
https://www.bloombergquint.com/business/2018/01/07/dont-privatise-air-india-give-it-five-years-to-
revive-parliamentary-panel
http://www.thehindu.com/business/what-is-the-divestment-of-air-india-all-
about/article19285355.ece
https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/air-india-stake-sale-
debt-laden-flag-carrier-to-open-books-to-likely-bidders/articleshow/62331601.cms

Syria refugee crisis

Pro-democracy protests erupted in March 2011 in the southern city of Deraa after the arrest and
torture of some teenagers who painted revolutionary slogans on a school wall.
The unrest triggered nationwide protests demanding President Assad's resignation.
Violence escalated and the country descended into civil war as rebel brigades were formed to battle
government forces for control of cities, towns and the countryside. Fighting reached the capital
Damascus and second city of Aleppo in 2012.
By June 2013, the UN said 90,000 people had been killed in the conflict. By August 2015, that figure
had climbed to 250,000, according to activists and the UN.
The conflict is now more than just a battle between those for or against Mr. Assad. It has acquired
sectarian overtones, pitching the country's Sunni majority against the president's Shia Alawite sect,
and drawn in regional and world powers. The rise of the jihadist group Islamic State (IS) has added a
further dimension.
More than 4.5 million people have fled Syria since the start of the conflict, most of them women and
children. Neighbouring Lebanon, Jordan, and Turkey have struggled to cope with one of the largest
refugee exoduses in recent history. About 10% of Syrian refugees have sought safety in Europe, sowing
political divisions as countries argue over sharing the burden. A further 6.5 million people are internally
displaced inside Syria, 1.2 million were driven from their homes in 2015 alone.
Islamic State has capitalized on the chaos and taken control of large swathes of Syria and Iraq.
http://www.bbc.com/news/world-middle-east-26116868
https://www.mercycorps.org/articles/iraq-jordan-lebanon-syria-turkey/quick-facts-what-you-need-
know-about-syria-crisis
https://www.youtube.com/watch?v=JFpanWNgfQY

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Industry 4.0
Industry 4.0 is a name for the current trend of automation and data exchange in manufacturing
technologies. It is another name for the fourth industrial revolution. Industry 4.0 focuses on the end-
to-end digitization of all physical assets and integration into digital ecosystems with value chain
partners. These are the following industry disruptors which are a part of Industry 4.0:
BIG DATA AND ANALYTICS
AUTONOMOUS ROBOTS
SIMULATION
HORIZONTAL AND VERTICAL SYSTEM INTEGRATION
THE INDUSTRIAL INTERNET OF THINGS
CYBERSECURITY
THE CLOUD
ADDITIVE MANUFACTURING
AUGMENTED REALITY
We define Industry 4.0 as the next phase in the digitization of the manufacturing sector, driven by four
disruptions: the astonishing rise in data volumes, computational power, and connectivity, especially
new low-power wide-area networks; the emergence of analytics and business-intelligence capabilities;
new forms of human-machine interaction such as touch interfaces and augmented-reality systems;
and improvements in transferring digital instructions to the physical world, such as advanced robotics
and 3-D printing. (The four trends are not the reason for the “4.0,” however. Rather, this is the fourth
major upheaval in modern manufacturing, following the lean revolution of the 1970s, the outsourcing
phenomenon of the 1990s, and the automation that took off in the 2000s.)
Most of these digital technologies have been brewing for some time. Some are not yet ready for
application at scale. But many are now at a point where their greater reliability and lower cost are
starting to make sense for industrial applications. However, companies are not consistently aware of
the emerging technologies. We surveyed 300 manufacturing leaders in January 2015; only 48 percent
of manufacturers consider themselves ready for Industry 4.0. Seventy-eight percent of suppliers say
they are prepared.
The pace of change, however, will likely be slower than what we’ve seen in the consumer sector,
where equipment is changed frequently. The coming of steam power and the rise of robotics resulted
in the outright replacement of 80 to 90 percent of industrial equipment. In coming years, we don’t
expect anything like that kind of capital investment. Still, the executives surveyed estimate that 40 to
50 percent of today’s machines will need upgrading or replacement.
Strategists should also take Industry 4.0 into account as they contemplate the company’s future
directions—the second way to capture the potential. The traditional manufacturing business model is
changing, and new models are emerging; incumbents must be quick to recognize and react to these
new competitive challenges. More specifically, executives must consider the following options—and

79
watch for others that may be deploying them. Eighty-four percent of the manufacturing suppliers we
surveyed expect new competitors to enter the market soon.
https://www.forbes.com/sites/bernardmarr/2016/06/20/what-everyone-must-know-about-industry-
4-0/

Data privacy – Adhar

The Supreme Court is preparing to deal with the issue of making Aadhaar Card mandatory for citizens
and privacy has become central to the legal challenge facing Aadhaar, the 12-digit biometric unique
identity number, raising data breach and privacy concerns.
One of the first petition, by retired high Court judge KS Puttaswamy, challenging the government’s
ambitious and controversial Aadhaar project was on the grounds that the project violated privacy
rights of the citizens.
Although the government is making every effort towards the safety and security of biometric data, the
recent incidents of leakage of people’s Aadhaar details have raised questions on data safety. Private
details of citizens have been leaked on government websites and from private bodies like banks,
telecom operators, insurance providers and financial organizations. According to a government reply in
Parliament in June 2017, more than 200 government websites published names of beneficiaries of
welfare schemes with their addresses and Aadhaar numbers. More recently, a hacker published data,
including Aadhaar details of citizens, that affected over 6000 Indian organizations including Unique
Identification Authority of India (UIDAI), Reserve Bank of India, Bombay Stock Exchange, etc.
UIDAI had dismissed the reports saying that the data allegedly leaked was already in the public domain
and the information doesn’t provide any sensitive or confidential information about citizens. However,
critics are not accepting the assurance from the UIDAI and have the opinion that the problem with
Aadhaar data is that of accountability. In absence of a law that prescribes punishment in case of a data
leak, private and public agencies in India will not show diligence in the handling of data.
India doesn’t have a separate law for protecting personal data, which at present is covered under the
information technology act. But the government recognized the need for law and recently constituted
a committee under the Chairmanship of retired Supreme Court judge BN Srikrishna. The Committee
has been tasked with making suggestions that will protect personal information.
Armed with all this, the recent Supreme Court ruling making the right to privacy a fundamental right
and the absence of data protection law will make the going difficult for the government in the court.
http://indianexpress.com/article/explained/fundamental-right-to-privacy-what-the-judgment-means-
for-aadhaar-its-constitutionality-4812231/

Bullet trains in India: pros and cons

Though the country has been excited about the announcement from Prime Minister Narendra Modi
about a diamond quadrilateral of bullet trains to connect the four major cities of Mumbai, Delhi,
Kolkata and Chennai in his venture called “Smart cities” project, critics have not supported the move.
There are reasons to be happy about this project and there are reasons that drive us to ponder if this is
the first priority of a nation with a majority of its population below poverty line. Let us look at it from
all point of views and generate our own opinion on this.

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Pros of Bullet trains:
1. Speed: High speed is one of the biggest reasons for the proposal of this idea when it was first
initiated in India. Major cities connecting with towns of economic growth face the problem of fast
transportation. This would save time and boost businesses amongst the connected cities. Reduction in
commuting time is greatly required in Mumbai and other metro cities where a lot of time is consumed
in the process.
2. Comfort: These trains would utilize high-grade technology to provide a comfortable journey of long
hours within just a few hours. Improvising on the comfort level of train journeys have been a missing
factor in Indian railways and the introduction of bullet trains would be a great development in this
factor.
3. Safety: Earlier there were questions raised on the safety issues of these high-speed trains but the
Shinkansen network of Japan shows excellent records of safety. Ever since the bullet trains started in
1964, the Shinkansen has reported zero fatalities.
4. Avoid overcrowding: Making commuting easier from small town to major cities would lessen the
crowd of settlement and migration in major cities which would reduce pressure on growing urban
areas. Chief Minister has rightly mentioned decongestion of Bangalore as one of the reasons for the
bullet train.
5. Stronger and eco-friendly: Not only these High-speed trains are stronger enough to carry heavier
weight but are also eco-friendly as they do not require deforestations to set tracks. It is a modern and
technologically advanced means of transportation which can be a step towards growth and
development in India.
Cons of bullet trains:
1. Cost of construction: The cost of laying a bullet-train corridor is estimated to cost up to Rs 100 crore
a kilometer. After summing up the costs of signals, rolling stock, etc, the cost can rise up to Rs 115
crore a km. Operation and maintenance costs would also be high.
2. High fares: Fares of these trains would be high too in order to compensate the expenses and
maintenance. One way fare on Mumbai-Ahmadabad route is projected to be around Rs 5,000. Quite a
few Indians would be able to afford traveling with these expenses. And even those who would be
willing to pay such a high price might prefer traveling planes instead. If this factor is not considered,
then the project might prove to be a loss for the government.
3. Time-consuming project: The project is at its initial level of planning and it is predicted that the
implementation of the plan would take years. In between if there is a change in government, and then
the project could face the consequences.
4. Land acquisition: For laying tracks, there would be issues of land acquisition which might trigger
anger amongst commoners whose everyday living might come under menace. For instance, laying
these tracks in Mumbai would require the acquisition of land which has the largest slums in the city.
5. Other issues: This project might have other issues under India’s present condition including plaguing
of the power sector, choice of speed and gauge, the minimum length of the route for the viability of
the project, etc. It is important to understand whether or not India is ready for this change.
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Conclusion:
Bullet train has sets of pros and cons under India’s present situations and they need to be properly
handled so that it brings prosperity and development in the country and not debacles. Every factor
must be considered wisely and safeguarding of people’s living should not be compromised. There are
risks in this project but without risks, nothing big can be acquired.
https://www.ndtv.com/india-news/10-things-to-know-about-indias-first-bullet-train-1750274

Dokalam
The recent standoff between India and China at the Doklam plateau which lies at a tri-junction
between India, China, and Bhutan has gained much attention. It has turned into the biggest military
stand-off between the two armies in years and resulted in a fear of war as well. Following are the key
points on the issue:
• It started when India (Indian Army) objected a road construction by the People’s Liberation Army
(PLA) of China in the Doklam plateau which China claims to be a part of its Donglang region. However,
India and Bhutan recognize it as Doklam, a Bhutan territory.
• Later, China accused Indian troops of entering in its territory and India accused the Chinese of
destroying its bunkers (People’s Liberation Army bulldozed an old bunker of the Indian army stationed
in Doklam).
• Thereafter China stopped the passage pilgrims heading toward Kailash-Mansarovar through the
Nathu La pass, Sikkim. The route is a better alternative to Lepu Lekh route via Uttarakhand and had
been opened for pilgrims in 2015.
• Doklam (Zhoglam or Droklam or Donglang) is a narrow plateau lying in the tri-junction of India, China,
and Bhutan.
• China believes Doklam to be a disputed territory between Bhutan and China.
• It, therefore, contests the presence of Indian army in the region as a transgression.
• The disputed region is very close to India’s Siliguri Corridor which connects the seven northeastern
states to the Indian mainland.
Why is India supporting Bhutan in the Doklam issue?
• Bhutan and India have a very cordial relationship were as Bhutan and China do not have formal
relations.
• Bhutan has a very strategic position considering India’s geography.
• To foster the relationship, India and Bhutan signed a ‘Friendship Treaty’ in 2007 that commits India
to protect Bhutan’s interests and the close coordination between the two militaries.
• Also, India is worried that if the road is completed, it will give China greater access to India’s
strategically vulnerable “chicken’s neck” (Siliguri Corridor) that links the seven northeastern states to
the Indian mainland.

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https://thediplomat.com/2017/08/the-hidden-history-behind-the-doklam-standoff-superhighways-of-
tibetan-trade/

Catalonia
Spain is currently in a political crisis after Oct. 1, when the Catalonia region voted to secede. Spanish
courts ruled the outcome illegal. After this the Spanish Senate took the unprecedented and
extraordinary step of announcing that Madrid would move to seize control of the region. As a reaction
the Catalan Parliament declared its independence from Spain.
It was an exceptional end to a month-long political struggle. Spain had never before invoked Article 155
of its constitution, allowing it to suspend Catalonia's political autonomy.
Spanish Prime Minister Mariano Rajoy had said in the past that he would remove Catalonia's regional
president, Carles Puigdemont, from office, along with his separatist administration and that he would
take control of the region's autonomous police force. He declared that he would push for new elections
within six months.
How did Catalonia’s independence movement get started?
Catalonia is in northeastern Spain. Barcelona is the region’s capital.
For “independistas,” the fight for freedom had been a three-century project, one that could be traced
back to 1714, when Philip V of Spain captured Barcelona. (Even today, pro-independence Catalonians
insult Spanish loyalists by calling them “botiflers,” or allies of Philip V.)
Since then, Catalan nationalists had consistently pursued some degree of autonomy from Spain. By 1932,
the region's leaders had declared the Catalan Republic, and the Spanish government agreed on a state
of autonomy.
But when Gen. Francisco Franco came to power in 1939, those gains were lost. Franco systematically
repressed all efforts toward Catalan nationalism. Under his dictatorship, the New York Times wrote, “the
government tried to stamp out all Catalan institutions and the language, and thousands of people were
executed in purges. Virtually no Catalan family emerged from that period unscarred.”
After Franco died in 1975, the drive for independence started again in earnest. In 2006, Spain granted
Catalonia “nation” status and taxation power. But Spain’s Constitutional Court struck down that move
in 2010, arguing that while Catalans were a “nationality,” Catalonia was not a “nation.” More than 1
million Catalans protested the finding without any success.
Catalonia enjoyed more control over its regional finances than most other parts of Spain. But that wasn’t
enough for many residents. As a Times article explained, “Many Catalans have grown to adulthood
believing that they were, simply, not Spanish.”
There’s another issue: Catalonia is the richest region in Spain and the most highly industrialized. It houses
many of Spain’s metalworking, food-processing, pharmaceutical and chemical facilities. It also boasts a
booming tourism industry, thanks to popular spots such as Barcelona. The region has about 16 percent
of Spain’s population and accounts for 20 percent of the national economy.

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Catalans often complain that they contribute more in taxes to the Spanish government than they get
back. In 2014, Catalonia paid about $11.8 billion more to Spain’s tax authorities than it received. But the
complexity of budget transfers made it hard to judge exactly how much more Catalans contribute in
taxes than they get back from investment in services such as schools and hospitals.

What happened on October 1,2017?

Catalans went to the polls to vote on independence but for weeks, Rajoy condemned the vote as illegal.
He and others argued that the vote would undermine the rule of law and set a dangerous precedent. In
the lead-up to the vote, Rajoy sent in thousands of troops to seize ballot forms and arrest pro-
independence officials. Websites informing Catalans about the election were shut down.
Catalonia’s own police force was ordered to follow the lead of Spain’s paramilitary Civil Guard and to
help stop the vote and were told to clear out all polling stations by 6 a.m. on Oct. 1 and to confiscate
ballot boxes.
The election day was spoiled by clashes, with police using rubber bullets and truncheons to control the
crowds and keep people out of the streets. Hundreds were injured in what the Times described as “one
of the gravest tests of Spain’s democracy since the end of the Franco dictatorship.”
Even so, the Catalan government said some 2.3 million people voted, out of about 6 million eligible
voters. Of those who turned out, 90 percent voted for independence.
Separatists claimed victory. But Spanish loyalists pointed out that at least 6 in 10 voters stayed home. A
protest in favor of Spanish unity brought hundreds of thousands of people onto Barcelona’s streets with
many of those in attendance describing themselves as the “silent majority.”
Shortly after the Catalan vote, Puigdemont, the Catalan president, declared his region’s right to
independence from the rest of the country. But in a speech to the regional Parliament, Puigdemont
offered, as analysts had predicted, a “toned-down declaration that would leave the door open for
negotiations with the national government in Madrid.”
It seemed like a crisis might be averted. But Spain’s prime minister had taken a hard line against the
region and his cabinet agreed to implement Article 155, which allows the national government to take
over a regional government, including its finances and police.
The full Spanish Senate approved the move. This was an unprecedented incident as according to
Junqueras, the Catalan vice president, nobody knew what Article 155 meant, because no one had ever
invoked it before.
Catalonia’s leaders meanwhile, decided to declare their independence officially. In an emotional vote
Friday, 70 members of Catalonia's Parliament voted in favor of independence. Ten voted no, and 55
declined to participate, showing the deep divisions that exist on the issue.
https://www.youtube.com/watch?v=WpoA23fn71o&t=3s

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Idea Vodafone Merger
The National Company Law Tribunal (NCLT) approved Idea CellularBSE 1.39 %'s proposal to merge with
Vodafone Mobile Services and Vodafone India on January 13,2018 to complete the $23 billion deal.
Both telcos received nods from capital markets regulator Securities Exchange Board of India (Sebi).
Idea said cost reduction due to the merger will help in strengthening customer base and providing high
quality service to clients. "Higher spectrum availability and larger single-radio access network along
with re-deployment of overlapping equipment from rationalized sites will also lead to lower capital
expenditure," the telco said.
The Birla-owned company unveiled plans to raise Rs 6,750 crores ahead of its merger with Vodafone
India to pare debt and free up cash for expansion. Of this, Idea would raise Rs 3,250 crore in its first
tranche by issuing preferential shares at Rs 99.50 a unit to four entities of the promoter group.
After the preferential allotment, the Aditya Birla Group's stake in Idea would rise to nearly 47% from
42%. This stake increase will also lead to a change in the contours of the merger agreement between
Idea and Vodafone, with the Indian carrier needing to buy the lesser amount of shares from Vodafone
Group to reach an initial stake of 26% in the combined entity. Vodafone, which plans to infuse Rs 7,390
crores into India operations, would, along with Idea's fund raise, go towards paring debt of the merged
entity.
http://www.moneycontrol.com/news/business/cnbc-tv18-comments/idea-vodafone-merger-
announcement-of-management-board-likely-by-end-of-jan-2483817.html

Tata vs Mistry
Below is a timeline of the events post TATA – Mistry split:
24 October 2016: Tata Sons removes Cyrus Mistry as executive chairman of the group holding
company, appoints Ratan Tata as interim chairman, and disbands the group executive council.
25 October 2016: Mistry, in a letter to the Tata Sons board, warns of an $18 billion write-down and
alleges ‘shadow control’ by Tata trustees.
5 November 2016: Tata group’s listed companies start announcing extraordinary general meetings
(EGMs) to remove Mistry as chairman.
10 November 2016: Tata Sons replaces Mistry as chairman of Tata Consultancy Services with Ishaat
Hussain as interim chairman.
14 November 2016: Independent directors at Tata Motors refuse to take sides, saying the automaker’s
board was collectively responsible for all decisions relating to strategy and operations.
16 December 2016: Nusli Wadia, Wadia group chairman who was removed as an independent director
from the boards of Tata Motors and Tata Steel, files a defamation suit against Tata Sons and Ratan
Tata, calling the allegations leveled against him libelous and defamatory.
19 December 2016: Mistry resigns as director from all Tata group companies.

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20 December 2016: Mistry family firms file a case against Tata Sons at the National Company Law
Tribunal (NCLT), alleging oppression of minority shareholders and mismanagement.
27 December 2016: Wadia writes to the Securities and Exchange Board of India (Sebi) alleging a
violation of insider trading norms at Tata Sons.
11 January 2017: Mistry firms file contempt plea in NCLT, stating that Mistry’s removal from the board
violates a 22 December 2016 order by the tribunal which said that no party would initiate any action or
proceedings over the subject matter pending disposal of the company petition.
12 January 2017: Tata Sons names N. Chandrasekaran, CEO of Tata Consultancy Services Ltd, as its
chairman.
18 January 2017: NCLT dismisses Mistry firms’ contempt plea.
23 January 2017: Sebi’s board rules that operating group companies sharing information with
chairman emeritus (Ratan Tata) does not amount to insider trading.
24 January 2017: Mistry firms seek a waiver from NCLT on 10% shareholding threshold for filing the
case alleging oppression and mismanagement.
6 February 2017: Mistry removed as director of Tata Sons.
21 February 2017: Chandrasekaran takes charge as chairman of Tata Sons.
28 February 2017: Tata Sons settles a legal dispute with NTT DoCoMo Inc.
6 March 2017: NCLT rules Mistry firms’ plea is not maintainable under the Companies Act.
14 March 2017: Ankur Verma, managing director of Merrill Lynch, joins Chandrasekaran’s core team
for deals, the first of a series of investment banker hires.
17 April 2017: NCLT dismisses Mistry firms’ request for waiver of shareholding threshold requirement
and main petition alleging oppression and mismanagement against Tata Sons.
21 April 2017: Mistry firms move the National Company Law Appellate Tribunal (NCLAT) against NCLT
order on maintainability.
22 May 2017: Saurabh Agrawal, head of corporate strategy at the Aditya Birla Group, joins Tata Sons as
group chief financial officer.
5 July 2017: A Mumbai court admits Rs500 crore defamation suit by R. Venkataramanan, a trustee at
Tata Trusts, against Mistry.
4 August 2017: Sebi rules that there are no governance lapses at Tata group firms.
23 August 2017: Banmali Agrawala joins Tata Sons as president of aerospace, infrastructure and
defense sectors.
29 August 2017: Tata Sons sends out an EGM notice to pass resolutions enabling it to become a private
company and give voting rights to preferential shareholders.
20 September 2017: Tata Steel announces the merger of Tata Steel Europe with ThyssenKrupp AG.

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21 September 2017: Board of Tata Sons approves the proposal to turn the firm into a private company.
Mistry firms win waiver from shareholding threshold limit from NCLAT.
6 October 2017: NCLT refuses to transfer Mistry’s plea from the Mumbai bench to the Delhi bench of
the tribunal.
13 October 2017: Tata Teleservices announces the merger of consumer mobile business with Bharti
Airtel.
The Tata vs Mistry battle raises questions on succession in family businesses and the importance of a
shared vision between the incumbent and successor
http://www.forbesindia.com/article/battle-at-bombay-house/tata-vs-mistry-the-inside-story/44721/1

PWC Ban
PwC’s member firm Price Waterhouse was banned on January 10, 2018 from auditing listed companies
in India for two years and was ordered to pay a fine of 131m rupees (£1.5m)
The ban came after the firm was accused of negligence in its audit work at the now defunct Satyam
Computer Services and doesn't include 2017/18 audits for listed companies which are already in
progress.
The Securities and Exchange Board of India said Price Waterhouse chose to rely on “glaring anomalies”
and huge differences in the company’s balance confirmations during its audit work between 2001 and
2008.
Satyam was an IT services company which has ceased operations after an accountancy scandal in 2009.
At the time, chairman Byrraju Ramalinga Raju confessed he made up about $1bn of the company’s
cash on its books.
The Indian authorities said that, from 2003 onwards, Satyam’s sales revenues were inflated by
accounting for 7,561 fake invoices, and Price Waterhouse failed to check the veracity of the monthly
bank statements.
It accused Price Waterhouse of ignoring the balance confirmations received by banks, which were
showing true balances.
The authority warned the network structure of operations adopted by PwC, should “not be used as a
shield to avoid legal implications arising out of the certifications issued user the brand of the network”
in India.
Price Waterhouse said in a statement it was disappointed with the findings of the SEBI investigations
and the adjudication order."The SEBI order relates to a fraud that took place nearly a decade ago in
which we played no part and had no knowledge of. As we have said since 2009, there has been no
intentional wrongdoing by PW firms in the unprecedented management perpetrated fraud at Satyam,
nor have we seen any material evidence to the contrary. We believe that the order is also not in line
with the directions of the Hon’ble Bombay High Court order of 2010 and so we are confident of getting
a stay." However, it added it has learnt the lessons of Satyam and invested “heavily” over the last nine
years in “building a robust and high quality audit practice”.

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https://theprint.in/2018/01/12/is-sebis-ban-on-pwc-over-the-satyam-scandal-well-deserved-or-too-
little-too-late/

SC Issue
The recent controversy over allocation of cases and constitution of benches in the Supreme Court has
brought into focus the process by which cases are assigned to judges.
Justices J Chelameswar, Ranjan Gogoi, Kurian Joseph and MB Lokur claimed on January 12 2018 that
Chief Justice Dipak Misra has “selectively assigned cases” to preferred benches.
According to three retired Chief Justices of India (CJIs) and two former judges of the top court, there is
no written procedure in the top court that is followed to allocate cases. When a case is filed, its details
and subject matter are scrutinized by the SC registry, which receives and processes all documents. One
CJI said the cases are categorized on the basis of subject matter. There are 47 broad categories such as
letter petitions, public interest matters, taxation, service matters and criminal appeals. Each category
has multiple sub-categories.
In the current controversy, the four judges pointed out in their letter on Friday that the CJI had out of
turn marked the petition related to appointment of judges to a bench led by a judge who is at number
eleven in seniority. The plea, they claimed, should have been heard by a constitution bench since five
judges had decided the validity of the controversial NJAC law on the appointment of judges.
Similarly, the CJI broke convention when he hurriedly set-up a constitution bench in the medical
college case and did not include any of the top four judges in it, according to allegations made by one
of the four judges. As per convention, a constitution bench usually comprises one senior judge other
than the CJI.
The exclusion of Justice Chelameswar and Justice SA Bobde from the bench hearing petitions against
Aadhaar is also said to be a departure from practice. Though the two judges should have been part of
the constitution bench since they, along with Justice SA Nazeer, were the ones who referred petitions
against Aadhaar to a larger bench they were not and this led to the outcry.

Infosys
Vishal Sikka resigned as the CEO on August 18,2017. Sikka took the top job at Infosys in 2014 after
leaving SAP, becoming the first CEO of the company who was not also one of its founders.Sikka
claimed to have taken this step after months of personal attacks, which though not mentioned is said
to have come from N.R. Narayana Murthy. Infosys shares fell as much as 7.6 percent to a more than
one-month low of 943 rupees ($14.71).UB Pravin was appointed the Interim CEO on August 24 2017.
Infosys announced on December 2,2017 that its board of directors has appointed Salil S. Parekh as
Chief Executive Officer and Managing Director (CEO & MD) of the company effective January 2, 2018.
Parekh joins Infosys from Capgemini where he was a member of the Group Executive Board. He has
Master of Engineering degrees in Computer Science and Mechanical Engineering from Cornell
University, and a Bachelor of Technology degree in Aeronautical Engineering from the Indian Institute
of Technology, Bombay.
U B Pravin Rao stepped down effective January 2, 2018, and will continue as Chief Operating Officer
and a whole-time Director of the company.

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http://www.livemint.com/Companies/kh0jH09FsCQRoaYZmEnqyM/The-backstory-to-Infosys-CEO-
Vishal-Sikkas-resignation.html
US North Korea relationship
For more than a quarter-century, the United States has diplomatically engaged North Korea over its
nuclear ambitions in hopes of curbing them.
Throughout those 25 years, leaders from North Korea (formally known as the Democratic People's
Republic of Korea, or DPRK) proclaimed the country has a right to arm itself in defense of what it sees
as an existential threat across the Pacific.
Diplomacy's effectiveness was at its best in the early 1990s, when North Korea was finally convinced to
turn off their nuclear reactors.
The nation's defiant stance reached a new height in 2017, as North Korea conducted at least 25 missile
tests and one nuclear test in 2017, including an intercontinental ballistic missile that could reach the
U.S. mainland.
Under Trump, the relationship with North Korea hit a new low as the lack of diplomacy increased the
rise in North Korean missile tests and contentious rhetoric at the United Nations and other
international forums. All though 2017, there were multiple incidents of US citizens being detained in
North Korea.
In December 2017, Secretary of State Rex Tillerson said that North Korea must start working its way
back to the negotiating table by putting a plug on its missile test for a prolonged period.
The international community has requested the United States and North Korea to diplomatically
engage in 2018 in order to scale down the prospects of war.

https://www.nbcnews.com/news/world/north-korea-crisis-how-events-have-unfolded-under-trump-
n753996
https://www.weforum.org/agenda/2017/12/north-korea-united-states-a-history/
https://www.youtube.com/watch?v=D9Okmtzf_xo

Disclaimer

The clubs of Indian Institute of Management Sirmaur have collaborated to prepare and compile this
WAT-PI kit. All attempts have been made to provide the most up-to-date information on the topics
from trusted sources. This document has been drafted with an intention to provide concise and
accurate information on each topic, and give aspirants a bird's eye view of what lies ahead of them.

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