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Precis Writing-Paper 2-CA Foundation notes

Precis Writing – CA Foundation, CPT notes, PDF

This article is about Precis Writing- BUSINESS CORRESPONDENCE AND REPORTING for CA foundation CPT students. we also provide PDF file at the end.

Precis Writing

Precis Writing

What we will study in this chapter:

(i) What is Précis writing? (ii) Features of good Précis writing (iii) How to write a Précis (iv) Do’s and Don’ts of Précis writing (v) Examples(Passages with Précis) (vi) Exercises

Descriptive Questions

Past Year Questions and Answers

1994 – June [6] Write a precis of the following passage in about one-third of its length and suggest a suitable title,

Development, to be sustainable, must include not merely material growth, but also, and perhaps more importantly, the blossoming of cultural, intellectual, spiritual and other non-material aspects of human existence. Unfortunately, the Western notion of development has sidelined all these aspects and brought materialism to the centre stage. Even all intellectual and cultural growth seems to be geared towards the aim of making money and accumulating goods. This has led to the fast deletion of renewable recourses and outflow of industrial affluents and wastes adversely affecting the environment. Consequently, it is now recognised that development to be real for all must be sustainable development’.

Sustainable development seems to have different meaning for different people. The World Commission of Environment and Development defines it as development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs”. As such sustainable development is the process in which the exploitation of resources, the direction of investments, the orientation of technological development, and the institutional changes are all made consistent with the future as well as present needs. Centre to the concept of sustainability is the carrying capacity approach which can be defined as maximum rate of resource consumption and waste disposal that can be sustained indefinitely in a given region without progressively impairing diversity and ecological integrity.

Meeting the needs of the poor in this generation is an essential aspect of sustainably meeting the needs of the subsequent generations. Thus, sustainable development is a process in which economic, fiscal, trade,

energy, agriculture and industrial policies are designed to bring about a development that improves health care, education and social well-being and reduces absolute poverty through lasting and secure livelihood that minimises resources depletion, environmental degradation, cultural disruption and social instability. Sustainable development demands a reduction in fertility rates by increasing literacy and education of women and girls. It demands drastic reduction in the inefficiency and wastage in our schooling system expressed in the massive drop out rates and educated unemployment. It demands such a policy which is based on a dispersed pattern of human settlements, low-cost water supply and housing and the recycling of wastes. It demands optima use of the medical infrastructure that we have built and will further build particularly in rural areas. Above all, it demands a positive, as against the present normative, approach to the major socio-economic problems of unemployment, poverty and inequality, which can never be addressed effectively without the involvement of people. After all, development is for people as such an essential element in the development process is people’s participation. It may be emphasised that even with the best of intentions planning for sustainable development can never be effective without participation of people (15 marks)

Answer:

Sustainable Development

Sustainable development, in the words of the Commission on Environment and Development means development that meets the needs of the present generation without compromising the ability of future generations to meet their needs”. As such sustainable development is the process in which exploitation of resources are made consistent with the future as well as present needs.

Sustainable development must include material as well as cultural, intellectual, spiritual aspects of human existence. Unfortunately the Western notion of development has brought materialism to the centre stage. This has led to the depletion of renewable resources and outflow of industrial effluents affecting the environment.

Sustainable development is a process in which economic, fiscal, trade, energy agricultural and industrial policies are designed to bring about a development that improves health care, education, and social well-being and reduces poverty and secure livelihood that mininmises resources depletion, environmental degradation, cultural disruption and social instability.

As development is for people, peoples’ participation is essential in the development processes.

1994 – Dec [6] Write a precis of the following passage in about one-third of its length and suggest a suitable title.

The most powerful force of the industrial age is the transnational or, more commonly, the multinational corporation. What we have seen in the past forty years is an extraordinary globalisation of production, based not merely on the export of raw materials or finished manufactured goods from one country to another, but on the organisation of production across national lines. The transnational corporation may do research in one country, manufacture components in another, assemble them in a third, sell the manufactured goods in a fourth, deposit its surplus funds in a fifth, and so on. It may have operating affiliates in dozens of countries. The size, importance, and political power of this new player in the global game has skyrocketed since the mid-1950’s. Today at least 10,000 companies based in the high-technology nations have affiliates outside their own countries. Over 2,000 have affiliates in six or more host countries. Of 382 major industrial firms with sales over $ 1 billion, fully 242 and 25 per cent or more ‘foreign content’ measured in terms of sales, assets, exports, earnings, or employment. And while economists disagree wildly on how to define and evaluate these corporations, it is clear that they represent a crucial new factor in the world-system — and a challenge to the Nation-State.

To glimpse their scale, it helps to know that on a given day in 1971 they held $ 268 billion in short-term liquid assets. This, according to the International Trade Sub-Committee of the United States Senate, was “more than twice the total of all international monetary institutions in the world on the same date”. The total annual U.N. budget, by comparison, represehted less than 1/268 or 0.0037 of that amount. By the early 1970’s, General

Motors’ annual sales revenue was larger than the Gross National Product of Belgium or Switzerland. Such comparisons led economists Lester Brown, President of the World Watch Institute, to note that “It was once said that the sun never sets on the British Empire. Today, the sun does set on the British Empire, but not on the scores of global corporate empires including those of IBM, Unilever, Volkswagen and Hitachi”.

Nor are the Multinational Corporations only based in the rich nations. The 25 countries in the Latin American Economic System recently moved to create transnationals of their own in the field of agri-business, low-cost housing, and capital goods. Philippine-based companies are developing deep water ports in the Persian Gulf and Indian transnationals, are building electronics plants in Yugoslavia, steel mills in Libya, and a machine tool industry in Algeria. The rise of the transnational corporation alters the position of the Nation-State on the planet. (15 marks)

Answer:

Multinationals a challenge to Nation-States, Multinationals and the Nation-States.

Multinational Corporations have become powerful entitles of industrial age through their worldwide operations. They even enjoy influence in the corridors of political power. Their presence is significantly felt since mid- 1950s. Atleast 10,000 corporations have affiliates outside their home countries and 2,000 have affiliates atleast in 6 countries. 382 have annual turnover of $ 1 billion and 342 have 25% of their income from foreign sources^ In 1971, multinationals held $ 268 million in liquid assets which was more than 2 times worth of all International Monetary Institutions. Sales of General Motors was’more than GNP of Belgium or Switzerland. ‘Sun does set on British empire but not on multinationals like IBM’.

Multinationals operate both from rich and developing countries. 25 countries of Latin America have joined together to form multinational corporations. Philippine corporations are building ports in Gulf and their Indian counterparts operate in Yugoslavia, Libya and Algeria. Thus multinationals have become a crucial factor altering the present position of Nation-States in the World System.

1995 – June [6] Write a precis of the following passage in about one-third of its length and suggest a suitable title.

There is often an inadequate understanding or erroneous impression of the role of government in the management of the public sector. It is to be clarified that it is not that of a fifth wheel in the whole set-up. It is complementary to the functions of the management of the public sector corporations and, at the same time, effective and consonance with discharging its obligation of accountability of the puplic sector.

It is also the government’s primary responsibility to ensure that the public sector units are run in accordance with the overall government policies, objectives and goals set for the undertakings and that they continue to improve on their performance. It must, therefore, prescribe the yardsticks for judging their performance and must have the necessary inflow of information to monitor and evaluate their progress to predetermined indices.

In order to do so, government has rightly retained the right to appoint the chief executives, on the Board of directors of public sector companies. Furthermore, it has its nominee director on the Board to ensure that important policy decisions conform to government policies.

Likewise, it is for government to formulate policies of a national character and it has to have an effective say in the overall policies of labour relations, in the matter of wages and incentives and in the system and modalities of recruitments, research and development, import and transfer of technology, import of equipment and so on. But all this is not to usurp the role of management in these companies but to help and supplement their efforts within the overall national policies.

It is in this context, drawing on my own experience in government in so far. as the Department of Heavy Industry is concerned, that we took a decision in the very beginning to professionalise the management of public sector undertakings within our purview, at the same time giving them a reasonably long period to prove their performance, and thus, giving them a sense of stability and involvement.

We also set-up a management information system in our department’to accord with our functions and responsibilities so that problems and difficulties could be anticipated or detected in time for remedial measures rather than be confined to post-mortem.

I am glad to say that the present working relationship between the public sector undertakings and the government is such that each one understands, appreciates and respects the other’s role and responsibilities and it has given rise to a mutual feeling of trust and inter-dependence.

The public sector units can have no occasion to say that directives are issued by government sitting in an ivory tower. They have the confidence that their difficulties and problems are appreciated and that they can always look to government for such legitimate assistance as they may require.

(15 marks)

Answer:

Government Role in Public Sector Management

The Government’s role in the management of public sector undertakings is not obstructive but complementary. It is consistent with the accountability of the public sector. The. Government must ensure that the public sector operates according to Government policies and objectives and that its performance improves. It must have norms to judge performance and, information feed-back to evaluate it. It has, therefore, the right to appoint Chief Executives and nominees on the Board of public sector undertakings. The Government makes policies and exercises an effective say in matters like wages, recruitment, Research and Development, transfer of technology without usurping the role and functions of management. In this background, management was professionalised in the public sector undertakings under the Department of Heavy Industry. To anticipate and solve problems, a management information service was set up. The present relationship between Government and public sector undertakings is one of the mutual understanding and respect for each other. The latter are assured of Government’s understanding and legitimate help.

■ 1995 – Dec [6] Write a precis of the following passage in about one-third of its length and suggest a suitable title.

> Competition among domestic producers alone is not enough. There is so much of new investment proposals forthcoming in all sectors of the economy, including modernisation and technological upgradation of existing plants. This is not just due to the abolition of industrial licensing. It mainly stems from relaxing restrictions on foreign investment and technology, which

is obtainable only from foreign partners. If an Indian company is not willing to do that, it will lose out in the competition with others working out joint ventures with foreign companies.

It is a misconception that India needs imported technology in only high- tech areas. What is forgotten is that’ most high-tech industries will not generate much employment. The chances of creating significant additional employment are much greater with low-tech, labour intensive industries such as watches, toys, auto components, food-processing and horticulture, which also have a high export potential. But even in these low-tech areas, the need for technological upgradation and quality improvement is enormous, especially if these products are to be exported in highly competitive international markets. Hence, infusion of foreign investment and foreign technology needs to be encouraged in these low-tech areas also. One must also remember that unless protection to the sheltered Indian market is substantially brought down by further lowering tariffs and permitting foreign investment in consumer products, foreign capital will come to India primarily to ‘exploit’ the protected Indian market and not for using India as a base for exports to other countries. Even when a firm is internationally cost- competitive, the decision to export depends crucially on whether export sales are more profitable than sales in the home market. Permitting direct foreign investment in only infrastructure industries may create jobs but will not generate exports, atleast directly. China’s export boom in many cases has been brought about by foreign investment in low-tech consumer industries.

The perceived role that foreign capital can play in economic development has undergone changes over time. Now-a-days the emphasis is more on the modern technology and international marketing channels provided by foreign companies rather than supplementing domestic savings or providing scarce foreign exchange. Hence, direct foreign investment is considered more valuable than portfolio capital which does not supply technology or markets. So foreign investment is no longer a one-way traffic. Faced with stronger competition at home, many Indian companies are going global through joint ventures abroad. Globalisation means buying best quality inputs at the lowest price, setting up factories at the least-cost location and selling products at the highest price globally. India, for its economic salvation, needs to move in this direction more vigorously. (15 marks)

Answer:

Globalisation of India Economy:

Liberalisation of restrictions on foreign investment and technology has encouraged foreign participation in modernisation and technological improvement of the industry in the country. An Indian concern not opting for foreign technical know-how may lose in the industrial rat race. Imported technology is also required even in low-tech areas such as watches, toys, etc. Which has got high export potential in international markets, besides scope for significant employment generation. Unless foreign investment and foreign technology in consumer products are encouraged, export markets cannot be captured successfully. China’s export boom is an example in this regard.

The role of foreign capital has changed over the years. Companies prefer foreign direct investment which affords modern technology and international markets for their products. Taking advantage of globalisation, some Indian companies have turned global through joint ventures abroad and this has to be pursued vigorously for country’s economic salvation.

1996 – June [6] Write a precis of the following passage in about one-third of its length and suggest a suitable title.

Mutual fund, a financial innovation of this century, provides for a novel way of mobilising savings from small investors and allowing them to participate in the equity and other securities of the industrial organisation with less risk. Mutual funds are sine qua non for the development of the capital markets and the creation of the equity cult in an economy.

In fact, there are three different forms of the organisation called investment trusts, with a singular objective of mobilising savings from all investors. There are “pure” investment trusts, whose investment is spread over a large number of securities with the return maximisation objective; holding companies which confine their investment to a few companies with ah objective to control them; and finance companies which are involved in trading in shares as well as financing and lending.

Investment trusts, essentially British institution, were set up in the 19th century for specially facilitating small investors to collectively invest in the equity shares of industrial organisation. It is a unique device of collecting

industrial capital from a wide spectrum of investors, particularly small investors, by converting risky individual securiti ?s into relatively safe “bundle” of “indirect” securities (sometimes called “units’). Investment trusts provide the most suitable vehicle for equity investment by the common man, since they enable a small investor to acquire by a single purchase a stake, not in one enterprise, but in a group of enterprises. Investment trusts issue shares like any other company. Therefore, their shares cannot be redeemed. An investor can trade them in a stock exchange to liquidate his investment. Thus, they are closed-end organisations.

The most popular form of investment trusts is the unit trust. Unit trusts in the U.S.A. are called mutual funds or ‘open-end’ investment company. Generally speaking, unit trust and mutual funds are open-ended funds because investors can continually buy and sell their shares, and they can issue unlimited number of shares. In a mutual fund, a group of investors pools their money, which is invested in various financial securities. The return obtained from the investment is shared among the investors in proportion to their investment. The mutual fund also employs a professional team to carry out the investment. The main feature of a mutual fund is that it makes diversification of portfolio a possibility for the small investors who otherwise may not be able to do so. They are also able to get professional investment management services and are relieved of the attendant worries that are normally involved in investment like book-keeping and transaction.

(15 marks)

Answer:

investment Trusts and Mutual Funds

Mutual Funds mobilises funds from large number of investors and provide the same to industries by participating in their equity.

There are three forms of investment trusts: pure investment trusts; holding companies and finance companies.

In Britain, Investment Trusts facilitate people to invest in equities collectively through “Indirect Securities” or “Units”. By a single purchase one can have a stake in a group of enterprises. They issue shares making them close ended organisations.

In USA, Mutual Funds known as Unit Trusts are open ended funds as they can issue unlimited number of shares and the investors can buy or sell the shares freely. Thus they receive money from investors which are reinvested in various securities. The income from such reinvestment is apportioned as per the shareholding. With professional management they maintain a diversified portfolio of investments.

1996 – Dec [6] Write a precis of the following passage in about one-third of its length and suggest a suitable title.

India is making tremendous progress in every field. Educational, social and economic level of the people is going up. The buying power of the middle class is attracting the big multinational corporations, and the consumer goods are being offered to them on instalment basis or through bank finances. At least ten new models of the best cars in the world would be available in India very soon. People are almost in a frenzy and are on a buying spree. Our own business houses have found an easy way out; they are collaborating with the foreign companies or are offering them 51 % equity in the joint ventures. In many ways it is a good thing happening to India as people can expect at least good quality products or imported consumer goods. But does it augur well for the nation? Since independence, the malady of the Indian economic system has been that it has never cared for the R&D and has never attended to the quality aspect. Despite the best trained technical and managerial personnel, we have only produced second- rate goods to make fast buck. Our best brains got frustrated in the process and emigrated to the developed nations. Our emphasis was never on quality, whether goods or manpower. We patronised /nediocrity as that was an easier option.

Once again we are resorting to the easier option: importing technology and all sorts of things. May be, after our first blunder, we do not have any way out except to import modern technology in order to come up to the requisite level and earn a reasonable share of exports. But that can only be a temporary measure. We must lay emphasis on the development of our own technologies suiting to the Indian conditions, at the same time matching the international standards, rather excelling them, in many areas. For th^t every industrial house, in collaboration with the best universities and technical institutions, must be obliged to contribute a part of its profits to the development of the new technologies. R & D must be an integral part of every business house; it should not merely be a formality like it has been, but it must engage the best brains in the area and contribute to the development and improvement of the indigenous technologies. Borrowed technology can never turn India into an Asian giant; for that it has to adopt the tougher option and show a new path to the world. Japan has done it; why can’t we? Otherwise, our country and people once again would be exploited by the foreign giants and it might become the dumping ground of the outdated foreign technologies. India may be a tiger, but in the absence of the proper growth of R & D units in industries, it would continue to sleep. In case we want this tiger wake up and roar, we must provide adequate funds to our research institutes and give enough incentives to the personnel there so that instead of fleeing this country, they put in their best. At the same time we must learn to respect their silent but nation-building work. (15 marks)

Answer:

India has achieved much progress educationally, socially and economically. In recent times the purchasing power of middle class has increased, consequently the demand for consumer durables has also increased considerably. Many Indian companies are now willing to collaborate with foreign companies and are even ready to offer majority stake. This may bring foreign technology to the country and improve quality of goods. However, we should be cautious that in the long run indigenous R & D should not get neglected. The import of foreign technology should be made on selective basis, such as for further boosting exports etc. foreign technology can not always sustain industrial growth. We should be self dependent and should not allow our country to become, a dumping ground, for outdated foreign technology. We should learn from Japan, and develop our own technology at international levels. Our business houses should allocate enough funds for in-house R & D activities. Our Universities and Technical Institutions should be given enough financial support in their-research activities. People engaged in R & D should be motivated by offering good incentives-which will also help to contain the brain drain from our country.

1997 – June [6] Write a precis of the following oassage in about one-third of its length and suggest a suitable title.

We know for certain that it is the ‘human capital1 that ultimately makes the difference, both in the case of an enterprise and a nation. The new economic superpowers of today, Japan, Germany, South Korea and Taiwan, amply testify the thesis that it is not the machine or technology that takes you to the heights, but it is primarily the manpower that decides the fate of a nation. Most of these nations are not rich in natural resources and have faced political turmoil. But inspite fo these problems they have achieved economic affluence in a relatively short period. There are chiefly two reasons for this miracle. Firstly, these countries have focused on the development of their human resources as a matter of national priority, and secondly they have kept their economic processes free from political pressures or influences. These countries present an ideal before the developing world of today. Human resources with high levels of education and skills constitute their major distinguishing asset. They have largely.succeeded in overcoming the intractable problems of poverty, illiteracy, hunger, unemployment, inflation and population growth, the problems that afflict not only India but also Asian nations. We have groped in the dark during the last fifty years for finding some solution to these problems but have miserably failed.

Japan and Germany, after their destruction in the second world war, reconstructed their national economies within two decades and moved forward achieving the highest level of per capita income in the world. But the examples of South Korea and Taiwan are more relevant in our context. In the early sixties, they too were bracketed with India and belonged to the same league of poor nations of the third world. Yet today, their per capita income range somewhere between 6,000 and 8,000 US dollars, from a mere 80 US dollars two or three decades back, while India still hovers around 350 US dollars. What are the reasons for their phenomenal rise or conversely, ours such a pitiable performance? India is rich in natural resources. We cannot complain on that count. And Indians! they are talented and have achieved a lot, working in different parts of the world. However, despite these positive factors, we have failed to tackle our chronic problems of population growth, poverty, unemployment, inflation, illiteracy and corruption. Our cities are the most polluted in the world today and we are not able to do much. A country of 950 million people cannot produce one golc, medal at the Olympics. What ails this ‘great’ nation? There may be many causes for our gigantic failure, as the studies of our economists and social scientists would reveal. But our failure can primarily be attributed to our failure in developing and exploiting our most plentiful and valuable resource — human capital. (15 marks)

Answer:

The Significance of Human Resources

It is the human resources, not the technology which takes a nation on the road to economic prosperity. After the war, Germany and Japan, though not very rich in natural resources, could achieve a high rate of economic growth due to proper development and use of their human resources besides keeping away political influences from economic processes. These countries could largely solve the problems such as poverty, unemployment, inflation etc. and attain highest per capita income.

Similarly, South Korea and Taiwan, who were in the same economic position as that of India in Sixtees, are now far ahead of us in economic development. Their per capita income is between 6000-8000 US Dollars against India’s 350 US Dollars.

Even after 50 years of independence, India with its abundant natural resources, has miserably failed to tackle any of its problems such as poverty, illiteracy, corruption, unemployment, etc. Our failure is mainly due to inadequate attention given to Human Resources Development.

1997 – Dec [6] Make a Precis of the following passage in about one-third of its length and suggest a suitable title.

One of the salient features, by far the most significant, of this year’s national budget has come to be known as ‘Voluntary Disclosure Scheme’. It. has at once attracted the maximum number of both admirers and critics for the Finance Minister. While some welcomed it, others have condemned it. And both for their own logical reasons. Here is a chance for those who have stashed away ‘black money1 in their lockers or trunks or in foreign banks, lying useless, unproductive for the owners as well as the nation. ‘Voluntary Disclosure Scheme’ assures them that by just paying tax @ 30% in the present budget — the owners can, at one go, convert their black money into white at no extra cost. No enquiries. No penalties. And the tax too not at the level at which it was earned but as per the present budget level — 30%. What an offer! Could any body have asked for better terms? Those who have applauded the Finance Minister think that it is indeed a wonderful idea as it would bring in millions and millions into the mainstream of economy and put them to productive and nation-building activities. While the national exchequer gets richer by a huge amount, at the 30% collection level, the rich people too get a chance to henceforth live a ‘clean’ life — not the tainted one full of fears of raids, etc. On the other hand, the critics of the scheme condemn it as an outright sell-out to the black marketeers, racketeers, tax- evaders and corrupt elements. They feel it puts a premium on dishonesty and leaves them off the hook easily. It is a mockery of the whole system — first you allow people to cheat the nation and then put a seal of honesty on them. This will cut the very root of the moral-system, they argue. Besides the merits of these arguments, the main question that bothers every right- thinking person is: Will the Indians respond to the scheme, by far the most generous one? Why not? But why should they? There is hardly any reason to suggest that the Indians, long-accustomed to amassing ‘black-money’ would suddenly turn pious and give over 30% to the Government. They have scant respect for law as it has never been able to book them, what with bribes and corruption in the Government Departments. In fact, they have always revelled in mocking at the helpless, tax-paying honest citizens. They can continue enjoying the ‘fruits’ of their ‘black money’ without paying even a penny as they have always done without any remorse. If that happens, this scheme too would go down the same drain through which the earlier ones, similar in nature though not as generous as this one, went. But that would be disastrous for the nation. All the calculations of tax collection would be belied and there would be inflationary pressures, beyond repair. (15 marks)

Answer:

The propriety of Voluntary Disclosure Scheme

Voluntary Disclosure Scheme attracted admirers as well as critics. The schemes provided a chance for those people having black-money to come clean by just paying 30% per cent of their undisclosed income as taxes to the

Government. No questions were asked or no penalties were levied on such disclosures. The scheme offered yet another opportunity to the Government to bring crores of rupees into the nation’s economy for productive use.

On the other hand, some critics condemned the move as the Government’s submission to tax-dodgers. They called it a mockery of the law-abiding citizens of the country and as a retrograde action labelling it as unethical and immoral. They claimed that Indians, accustomed to the role of black-money, would try their best to hide it from the Government and would use it for such purposes where it cannot be detected. The scheme would be a failure as the ones in the past, disproving the calculations of the Finance Minister.

1998 – June [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Even in the 50th year of our independence, we are still stuck in the year 1947: we are still to grapple with the problem of poverty that was regarded as Enemy Number one in 1947. Gandhiji’s dream of wiping off tears from the eyes of every poor villager is still repeated as a ritual on his birthdays. Our villages are as shabby today as they were at the dawn of independence. On the other hand, Nehru’s vision of a modern, technologically advanced and industrial nation has turned sour—our cities have turned into slums, and thanks to the pollution level, are unlivable. What has gone wrong? Haven’t we made any progress in these fifty years? Yes, certainly, a tremendous progress, even a blind man would answer. Isn’t it rather strange? We have opened a large number of schools, and yet we have the largest number of illiterates in the world. We have set up industries, both big and small, and yet we have maximum number of the unemployed in the world. And we have provided all sorts of subsidies to the weaker sections of the society, and yet we are the seventh poorest nation of the world. What ails our nation? There are many causes for this sad state of affairs, and these have been highlighted and analysed by different sociologists and economists from time to time. But if we have to pinpoint just one factor— the most crucial and vital — that has afflicted our nation and negated all our attempts at improving the lot of our people, we can safely and surely say, it is the population explosion. No right thinking person can deny that increase in numbers has simply played havoc with all our calculations — our planning process, our economic progress, our industrial growth, our social welfare institutions, everything has gone haywire, everything, in itself a great leap since independence, has failed to alleviate poverty, hunger and suffering. The ever-increasing population has swallowed all our attempts at giving our citizens a minimum subsistence level—we still have the largest number living below the poverty line. In fact our growth in any field, be it agriculture or industry, health or education, housing or sanitation, has never matched and will never match the requirements of the ever-growing numbers.

But isn’t it sad that we have miserably failed, both politically and socially, to tackle this Enemy Number One. Our political leaders, despite the lip- sympathy paid to the family planning programmes, have never really addressed the problem seriously or effectively. In fact, political compulsions of the electoral process have guided most of the political parties, instead of the national good. Our posterity will never forgive our leaders for their shortsighted and selfish considerations. It is the bounden duty of all our political leaders to rise above petty politics and take certain decisions which should check the future population growth and contain it at the present level. Enough is enough. Any further increase in the population will just be suicidal for this nation, let us understand it once and for all. (15 marks)

Answer:

Poverty in India

Even after fifty years of Independence, the country is still facing the problem of poverty. Gandhiji’s desire of eradication of poverty and Nehru’s vision of making a strong India – technologically advanced and industrialised nation- has remained a day dream.

Though, the country has got large number of educational institutions, it is burdened with the largest number of illiterates. Inspite of industrialisation, we are still groping with unemployment/underemployment. The sociologists and economists consider the population explosion as the main contributory factor for this malice. The growing population has eaten away the fruits of all our developmental efforts in every sector of economy – education and scientific research, agriculture, industry, health, employment, urban development and other welfare activities.

The fault lies with our power hungry politicians who are mostly concerned with their vote banks and who do not pay much attention to the problem of growing population. The future generation will not forgive them. It is high time that concrete steps are taken to control the population growth, or else, it will be disastrous for the country.

1998 – Dec [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

There is something terribly wrong with the development of human resources in India. While we go on talking endlessly of the economic development, we.hardly talk of the human resource development. Ironically, we don’t even perceive that it is the proper utilisation of the latter that would ultimately lead to the growth of the former. We are incurably blind to the fact that our best and most talented personnel emigrate to one or the other developed country. The employers or the nations which engage them are not fools — they must be contributing a lot to their growth and development. The most talented engineers from our I ITs, the best business oriented minds from our IIMs or the best doctors of our premier medical colleges including AIIMS avail themselves of the first opportunity to leave their own country and go abroad. Why? Are they simply crazy for dollars? Or are there some basic causes that force these youngsters to find some kind of satisfaction in an alien land and atmosphere? Nobody would leave his home if he got at home whatever was justly due to him. That is human nature. Money is a great allurement, no doubt. But you talk to these youngsters and you would find that there is some basic malady that runs through the entire Indian administrative system. They feel choked somehow. They cannot give expression to their ideas or talents here. Originality is looked down upon— you must be a cog in the machine, fixed by somebody at some point of time, remote and unchanging. There is no proper system of rewarding distinguished individuals. Ultimately they feel, they too are supposed to get down to doing routine things. ‘Initiative here is distrusted and valuable suggestions ignored’. There are no well-equipped laboratories where talented scientists or doctors could devote themselves to research and consequently serve the nation and humanity. Mediocrity is here glorified; excellence is frowned upon. The fire raging in the breasts of the new

generation is doused by the indifference of the authorities that be. Those who have a strong urge and are ready to carve out a niche for themselves in a new country emigrate and prosper. Others languish and get old in the rut and perish. It is a sad state of affairs. ‘If we really want India to prosper, we shall have to provide incentives to the talented people so that they could put their heart and soul into their respective areas and do for their own nation what now they are doing for their foreign employers. For this we shall have to create a new kind of respect for the human resources, and provide proper work-atmosphere. (15 marks)

Answer:

Brain Drain:

The human capital development in our country is marked with serious inefficiencies. There is a huge manpower loss of highly educated personnel when they move out of the country often described as brain drain. It involves wastage of nation’s resources in educating such people. Our best talents from NTs, IIMs, IIMS etc. emigrate to other countries because they can earn more and get more work satisfaction. Nobody would leave his own country if sufficient opportunities are available. Money is not the only reasons; the lack of proper system of reward and recognition is also responsible for this phenomenon. Poor research facilities is also a contributing factor. Our administrative and value systems are also to be blamed for this malaise.

If India is to progress, there is an urgent need for an effective human resources development planning with adequate provision for better work opportunities and for changing the existing work culture.

1999 – June [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

The urban chaos that characterises our metropolitan cities has raised many pertinent questions about the very concept of our development. Development for what? Development for whom? When after fifty years of consistent efforts at developing our nation, we find our cities virtually “unlivable1, we should pause and ask ourselves; What went wrong with our idea of development? Despite desperate pleas and warnings of the well- meaning thinkers and social agencies over the past decade or so, the administrators of our big cities and politicians alike never heeded, resulting

in the present mess we are in. The sprawling cities have virtually turned into slums with over-growing population devouring the meager available resources originally meant for nearly one-fourth of the numbers in almost every big city. If Delhi attracts five lakhs immigrants every year, Mumbai, Chennai, Bangalore, Kanpur, Calcutta, etc., should be no better. But why should so many lost souls leave their homes in villages and turn their faces towards the already overburdened, overpopulated cities? What do they get in these big cities which they never got or never hope to get in their native places? There could be varied reasons—they would differ with the psychological obsessions of each individual. But looking at the broader spectrum, you realise that two of these reasons have been chiefly responsible for disfiguring our cities. Whatever our politicians and administrators might profess for public consumption, they have never sincerely attempted to tackle it as a socio-economic problem which it chiefly is. They have only paid lip-sympathy to the problem which has now assumed gigantic proportions. Instead of making concerted efforts to stem the rot, the politicians have more than welcomed these poor, helpless, rootless migrants because they add up to their vote-banks. By offering small temptations to these people struggling for survival, they can easily bargain for their votes and ensure their victory at the polls. But the question still arises as to why these people leave their hearths and homes in the first instance. The answer is simple—for bread. Anybody who is born must feed himself and our planning process or the so-called development process has not ensured even bread to the rural masses. We have miserably failed in providing proper rural development so that bare minimum needs of the people could be fulfilled in their native villages. Education or employment, industry or agriculture, roads or housing, name any area, and we realise that the situation in most of the rural India is dismal. Unable to face starvation, villagers turn to the cities, their abodes of hope, and thus choke the arteries of the cities. (15 marks)

Answer:

Migration to Cities

Even after fifty years of economic planning and development, our metropolitan cities are virtual slums with even growing population and dwindling resources. Every year millions of people move to cities in search of livelihood. This is a socio-economic problem. Our administrators and

politicians have never paid any attention to solve this malady. Rather, our politicians are very cunning and shrewed. They want many poor people in our cities to serves as their vote banks to ensure their election to Parliament/State Legislature. Our planning process has failed miserably since it could not provide food, shelter, clothing and employment to rural population. It is a naked truth that industry, agriculture, roads, housing, employment, education etc. sectors have been largely neglected in most of our rural areas. This has led to an uncontrolled migration of rural population, especially the rural poor, to our already overpopulated cities and towns.

1999 – Dec [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title:

Ever since the liberalisation process was initiated by the government in 1991, Indian organisations are striving to put themselves on the world map of world class business. In the context of the revised economic policy, there is a great deal of realisation that even to exist in domestic business, an organisation should have a product or service comparable to the world class organisations or else they will have to leave the scene giving way to more competitive organisations. The liberalisation process which started with the private sector industries continues with the introduction of the Insurance Bill throwing open the insurance sector to MNCs and private sector investment. With the stand taken by a major political party on this issue, it is very obvious that it is going to be fait accompli that the fate of the insurance industry is like the fate of any other industry having to compete with efficient and effective organisations, both domestic and foreign. When one looks at the reality of the situation, one thing is very clear: whichever party is going to be in power, there is no other alternative for the Indian organisations but to prepare themselves to become globally competitive. In a nutshell, it is going to be an era of survival of the fittest. In the light of the above environment, organisations have realised the need for change and are initiating a lot of interventions to position themselves with products and services comparable to world class organisations.. With the entry of multinational organisations, a customer has a very wide range of choices to select from and he is going to choose a product or service which is cost effective without any compromise on quality.

In the era of monopoly and control, the following formula was valid for any organisation: Cost + Profit = Selling Price. In the light of protection enjoyed by many organisations, whenever there was a cost escalation or when the profit was inadequate, the organisations were in the envious position to increase the price without any resistance by the customers in the absence of any other competitive product. The customer paid for the inefficiency and ineffectiveness. It was a seller’s market. But with the entry of competition, the formula has changed to Selling Price – Cost = Profit. This formula assumes great significance and will change the fate of many organisations. The selling price is decided by the competition and the organisations will find themselves in a buyers’ market. With the availability of cost effective products with superior quality, organisations cannot increase the price at their own option. This means that there is no other alternative but to become effective by improving the productivity parameters of quality, cost, delivery and service. (15 marks)

Answer:

Benefits of Competition:

Liberalisation process had led Indian organisations to strive for world class business. Without world class products or services, organisations cannot exist even in domestic market. Recently, liberalisation has opened up the Insurance sector to MNCs and Private Sector Investment. The future points to an era of survival of the fittest and as such Indian organisations have to prepare themselves to become globally competitive. With the entry of multinationals, a customer is free to choose a product that is cost effective without having to compromise on quality. In the era of monopoly, when he formula cost + profit = selling price was in vogue, organisations were free to increase the price without any resistance from customers. It was sellers’ market then. But now it is buyers’ market. The concept of competition has now changed the formula. It is now selling price – cost = profit. This forces the organisations to become effective by improving the productivity parameters of quality, cost, delivery and service.

2000 – June [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title:

India is making tremendous progress in every field. Educational, social and economic levels of the people are going up. The buying power of the middle class is attracting the big multinational corporations, and the consumer goods are being offered to them on instalment basis or through bank finances. At least ten new models of the best cars in the world would be available in India very soon. People are almost in a frenzy and are on a buying spree. Our own business houses have found an easy way out; they are collaborating with the foreign companies or are offering them 51 % equity in the joint ventures. In many ways it is a good thing happening to India as people can expect at least good quality products or imported consumer goods. But does it augur well for the nation? Since independence, the malady of the Indian economic system has been that it has never cared for R & D and has never attended to the quality aspect. Despite the best trained technical and managerial personnel, we have only produced second- rate goods to make fast buck. Our best brains got frustrated in the process and emigrated to the developed nations. Our emphasis was never on quality, whether goods or manpower. We patronized mediocrity as that was an easier option.

Once again we are resorting to the easier option: importing technology and all sorts of things. May be, after our first blunder, we do not have any way out except to import modern technology in order to come up to the seguisite level and earn a reasonable share of exports. But that can only be a temporary measure. We must lay emphasis on the development of our own technologies suiting to the Indian conditions, at the same time matching the international standards, rather excelling them, in many areas. For that every industrial house, in collaboration with the best universities and technical institutions, must be obliged to contribute a part of its profits to the development of the new technologies. R & D must be an integral part of every business house; it should not merely be a formality like it has been, but it must engage the best brains in the area and contribute to the development and improvement of the indigenous technologies. Borrowed technology can never turn India into an Asian giant; for that it has to adopt the tougher option and show a new path to the world. Japan has done it; why can’t we? Otherwise, our country and people once again would be exploited by the foreign giants and it might become the dumping ground of the outdated foreign technologies. India may be a tiger, but in the absence of the proper growth of R & D units in industries, it would continue to sleep. In case we want this tiger to wake up and roar, we must provide adequate funds to our research institutes and give enough incentives to the personnel there so that instead of fleeing this country, they put in their best. At the same time we must learn to respect their silent but nation-building work. (15 marks)

Answer:

Development of Indigenious Technology

India has achieved much progress educationally, socially and economically. In recent times, the purchasing power of middle class has increased. Consequently, the demand for consumer durables has also increased considerably. Many Indian entities are now willing to collaborate with foreign companies and are even ready to offer majority stake. This may bring foreign technology to the country and improve quality of goods. But we should be cautious that in the long run indigenous R & D should not be neglected. The import of foreign technology should be made on selective basis, such as, for boosting exports. Foreign technology cannot always sustain industrial growth. We should be self-dependent and should not allow our country to become dumping ground for outdated foreign technology. We should learn from Japan, and develop our own technology to international levels. Our business houses should allocate enough funds for in-house R & D activities. Our universities and technical institutions should be given enough financial support in their research activities. People engaged in R & D should be motivated by offering good incentives, which will help to contain brain-drain.

2000 – Dec [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

The performance of a retailing institution is of critical importance to any economy, especially when the presence of the pressure of social environment is such that there is a constant Urge among the people within the community to raise their standard of living. The retailer adds a substantial element to the total cost of product and plays a pivotal role as the final link between the producer and the consumer.

As a social institution, the retailer makes available to the community at most convenient places products from far and near at considerable risk, provides an opportunity to the customer to check products before actual purchase and furnishes information regarding quality, utility and price. As an economic institution, the retailer acts as the final link with the consumer in the process of distribution of goods and services. Regardless of how much value the manufacturer has built into his product, how well he has communicated this value to the customer and how smoothly his production and physical distribution system may be functioning, it is a retailer who either consummates or obstructs the sale.

Recent shifts in the strategy of marketing of consumer goods and the term ‘marketing concept1 lay even more emphasis on the role of the retailer. The retailer has now come to be considered not as the final link in the distribution process with the consumer but as the initial link with him. Instead of being an agent of the market, he is sought to be made an agent of the consumer. This is just as well, because the mass production and mass consumption economy can hardly sustain itself if the retailer is not placed on a high pedestal and given his due place in the community and the market. That the Indian retailer continues to suffer in neglect and retailing in India remains a refuge of India’s countless unemployed in a desperate search of means of livelihood is too well known but what is not equally well known is the fact that by ignoring the retailer and his activities a bottleneck is created in the process of smooth flow of goods from farms and factories to the ultimate consumer, much to the detriment of all the community, the entrepreneur and the State.

Much progress, of late, has been made in improving retailing efficiency. At first progress concentrated upon what might be called the cost of revenue approach. Significant advances have been made in retail accounting systems and with the sophisticated inventory and control system, the efficiency of many retailing institutions has reached a high level.

(15 marks)

Answer:

The Importance of Retailing Institutions

The retailer, who determines the final cost of a product and provides the final link between the producer and the consumer, has a key rcle to play in an economy. Being both a social and economic institution, it is they who promote or impede the sale of a product irrespective of its quality or the efforts of its producer. Recent marketing strategies give the retailer greater prominence. In appreciation of their role in the smooth flow of goods from producers to the customer, they are now described as the initial link rather than the final one. As a result of the developments in retail accounting systems, sophisticated inventory and control system, and various aspects of retail management, the operational efficiency of retailing institutions has appreciably improved. Yet in India, because it provides sustenance to the unemployed, retailing continues to be exploited and undeveloped.

2001 – June [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

How are tax revenues to be shared between States in a federal system like ours? There have been long academic and policy debates on this for many decades. Yet, it is quite clear that nobody has a convincing answer, despite all those official committees, doctoral dissertations and university seminars. Just look at how the recent recommendations of the Eleventh Finance Commission have brought about a fiscal civil war.

One can cynically dismiss the joint protest by the Chief Ministers of the richer States as just another attempt by regional satraps to grab a bigger chunk of the tax loot. But it isn’t that at all. At stake is the long-term sustainability o.i both our fiscal and political federalism. The Centre is in a tight spot. If it sticks to the original tax-sharing plan, it risks alienating India’s richest and most dynamic States. If it tinkers with the existing formula, it will draw the ire of the poorer (and perhaps politically more important) States of the north and the east.

The current imbroglio may be sorted out, but such lights are going to get worse in the years ahead as different State economies grew at dramatically different rates. That’s cbvious by now. But there is another latent threat to fiscal peace that few seem to be aware of: how are taxes to be shared between States in case e-commerce really takes off in India? The complications which could arise will make the current mess seerp neat in comparison.

There are two types of commerce transacted over the Net. One, when orders are placed on websites and then physical goods are delivered by courier or logistics companies to the final consumer. Two, when digital products such as music or data are directly sent over the Net. It is still not clear how either is to be iaxed, but perhaps the more important issue for a country like India is how internet tax revenues are to be shared between various States.

If relatively simple tax-sharing agreements can lead to so much discord, we must then consider what the inherently more complex issue of raising and sharing e-commerce taxes can lead to. If the real world model is to be blindly followed, then the State where the consumer actually does the purchasing — Uttar Pradesh — should get the right to collect sales tax. How can this be enforced? The only possible way is to tax«goods bought over the Net at the time they enter a city, perhaps by insisting that the courier firms ensure that the tax is paid to the government. (15 marks)

Answer:

Fiscal Federalism

The issue of sharing tax revenues has been a bone of contention between the Union Government and the states for some time. The recommendations of the Eleventh. Finance Commission have only complicated the problem. The crisis lies between the durability of our fiscal and political federalism. If the Centre follows the original tax-sharing plan, it will displease the prosperous and progressive States that want a greater share of this revenue. But acting otherwise will mean losing the support of the poorer but politically important northern and eastern States. The problem will worsen, as’ the economy of different States will grow at different paces. Further complications will arise if e-commerce becomes popular in India, because how Internet commerce will be taxed or how this revenue will be shared is not clear. A possible solution could be imposing an entry tax for goods purchased over Internet.

2001 – Dec [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

The development of financial markets has been an interesting phenomenon. It was partly motivated by ideology and partly by the accidents of history. In eighteenth century, in England, the political philosophers, emphasized the rights of the individual to hold property, whereas the French highlighted the role of the State: the subordination of the individual to the common will. As a result, with industrial revolution, England allowed the private development of capital that spawned deep and efficient financial markets. This model was subsequently exported to the American continent and Australia who owed their intellectual debts to England.

As England led the world into the industrial age, the importance of London as an international centre increased. First, because of the preeminent position of England in the international trade, most short-term trade financing gravitated to London. Second, since England was the wealthiest country in the world, most countries went to London to raise long term capital for investment purposes. These trends tended to be reinforcing; as London developed a comparative advantage in the financial industry, foreign transactions would take place in London because of the more efficient location. . .

On the other hand, securities markets in many countries have b’een retarded for two reasons. First, on grounds of ideology, productive activity has been taken over by the State. In this case, there is an inevitable reduction in the number of securities, since once they become State-owned they are to traded. Second, after the two world wars, the upper and middle classes in many countries found their private wealth totally destroyed. As a result, industry was forced to raise money from financial intermediaries who in turn raised small amounts from small investors. Quite simply, the large pools of capital established through generations of inherited wealth were not available.

In the last fifty years or so, we have witnessed two major developments. First, the United States, as in aggregate the wealthiest country in the world has replaced the United Kingdom as the major capital exporter. Second, private capital in countries that do not have a sophisticated market system has gravitated to the international financial centres. The last development has been spurred by shortsighted regulations in many countries. For example, the Japanese interest rate control led to large-scale flood of capital to the United States to obtain a fair market return. Similar attitudes in third world countries have led many wealthy local investors to invest their capital in the secure anonymity of the international financial centres. To be an international financial centre requires a stable political system. Such a system should also encourage a live economic environment, a benign regulatory policy to encourage flow of foreign capital. Such a centre needs to be run by an efficient, experienced and vibrant financial community. A reliable infrastructure puts the seal on the development of a financial market.

(15 marks)

Answer:

Title Development of International Financial Markets

The emergence of financial markets was the cumulative result of ideology and history. England favoured individual’s enterprise while France invested the State with financial powers. The former emerged as a major financial center because of its favourable position and availability of wealth for investment both inland and overseas. London became the ideal place for efficient handling of foreign transactions. In contrast, the financial growth in many parts of the world suffered. Wherever the State usurped the dominant role, individual capital and enterprise vanished. The wealth inherited by upper section of societies was also destroyed during the world wars. The industry was forced to rely on funds of small investors. During the last fifty years, USA has emerged as the wealthiest nation. It has led to the movement of capital to more efficient financial centers. These centers require skilled financial community, excellent communication network and regulatory framework, which will help rather than hinder global investment.

2002 – June [6] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Competition among domestic producers alone is not enough. There is so much of new investment proposals forthcoming in all sectors of economy, including modernization and technological upgradation of existing plants. This is not just due to the abolition of industrial licensing. It mainly stems from relaxing restrictions on foreign investment and technology, which is obtainable only from foreign partners. If an Indian company is not willing to do that, it will lose out in the competition with others working out joint ventures with foreign companies.

It is a misconception that India needs imported technology in only high- tech areas. What is forgotten is that most high-tech industries will not generate much employment. The chances of creating significant additional employment are much greater with low-tech labour-intensive industries such as watches, toys, auto-components, food-processing and horticulture, which also have a high export potential. But even in these low-tech areas, the need for technological upgradation and quality improvement is enormous, especially if these products are to be exported in highly competitive international markets. Hence, infusion of foreign investment and foreign technology needs to be encouraged in these low-tech areas also. One must also remember that unless protection to the sheltered Indian market is substantially brought down by further lowering tariffs and permitting foreign investment in consumer products, foreign capital will come to India primarily to ‘exploit’ the protected Indian market and not for using India as a base for exports to other countries. Even when a firm is internationally cost- competitive, the decision to export depends crucially on whether export sales are more profitable than sales in the home market. Permitting direct foreign investment of only infrastructure industries may create jobs but will not generate exports, at least directly. China’s export boom in many cases has been brought about by foreign investment in low-tech consumer industries.

The perceived role that foreign capital can play in economic development has undergone changes overtime. Nowadays the emphasis is more on the modern technology and international marketing channel provided by foreign companies rather than supplementing domestic savings or providing scarce foreign exchange. Hence, direct foreign investment is considered more valuable than portfolio capital which does not supply technology or markets. So foreign investment is no longer a one-way traffic. Faced with stronger competition at home, many Indian companies are going global through joint ventures abroac. Globalization means buying best quality inputs at the lowest price, setting up factories at the least-cost locations and selling products at the highest price globally. India, for its economic salvation, needs to move in this direction more vigorously. (15 marks)

Answer:

Suggested titles: (1) Globalisation of Indian Economy

(2) Foreign Investment and Export Promotion

(3) Foreign Capital in Economic Development

Liberalisation of restrictions on foreign investment has encouraged

…odernisation and technological improvements because of foreign participation in Indian businesses. An Indian concern not opting for foreign know-how or foreign partners loses in the industrial race. Imported technology in areas such as watches, toys, etc. has high export potential in international markets and scope for significant employment generation as these areas are labour-intensive using low technology, which is unlike the high-technology oriented industries. Uniess foreign investment and foreign technology in consumer products is encouraged, the export market cannot be captured. China’s export boom is an example that the role of foreign capital has changed over the years. Companies prefer foreign investment, which provides affordable modern technology and international markets for their products. Taking advantage of globalisation, some companies have turned global through joint ventures and at present it appears that, this is the route Indian corporates should pursue in order to be globally competitive.

2002 – Dec [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

The assault of the developed economies of the world on the economies of the poor and developing countries goes on at an accelerated pace. Even countries like India which show some concern for self-reliant growth have to suffer a great degree of exposure to this assault from abroad in many ways. Foreign aid is, of course, the most potent means of this assault, in a tied-aid, the aid giver obliges the’ recipient country to accept technologies and equipments of the formers’ choice which may not necessarily be in keeping with the requirements of the recipient countries. Recently, the industrial countries have found an argument against even conditional assistance for industrial development being given to the poor nations, since even such aid with strings adds to the economic capability of the recipient country.

The strategy is now to sell equipments which do not strengthen any buying country’s economic capacity. This is done by promoting a theory of environmental protectionism and anti-pollution endeavour. There is no doubt that environment is very important and pollution is a great threat to human welfare, but for most people in the developing countries these are rather distant threats, the most pressing ones being to get two morsels of food to survive the day and to get a job even in the most hazardous occupation and to find a place to be able to pass the night even if that place be the most foul and polluted one. Those living in our cities see this truth in the countless footpath and slum dwellers. ‘Environmental protection’ and ‘pollution freedom’ while increasing the cash flow of the foreign sellers of equipments do not promise to make a difference to the positions of these hapless human beings even after a decade or a quarter of a century. Foreign cars built to international environmental specifications have undoubtedly added to the availability of cars only there is no road to use them even after the pedestrian footpaths have been encroached upon to make road wider, putting the man on foot at a greater jeopardy of his life and limbs.

The increasing dependence of the developing countries on the industrial countries seemingly gives rise to the need to be acquainted with the intellectual work done in the industrial countries relating to the economy and there is greater pressure on academicians and intellectuals to become members of international forums and organisations to counter the spread of such pernicious theories. When one considers the agricultural practices of the State of Maharashtra, the irrelevance of most so-called international ‘economic studies’ is seen in the true perspective. (15 marks)

Answer:

Suggested Titles

(a) The Economic dominance of Industrialised Countries

(b) The Economic assault on Developing Countries

Industrialised countries are economically assaulting the developing countries including ones like India, which seek self-reliance by forcing the recipient countries to buy obsolete technology and equipment from the former. Recently, industrialised countries are finding theories to deny and prevent developing countries from growing. Concerns like environmental protection and pollution control are being raised. Though such concerns are important, people in developing countries face worse threats such as finding food everyday, getting hazardous work and finding a shelter. Footpath and slum dewellers are such people. Meanwhile environmental concerns make industralised countries .richer through the equipment they sell to counter them. But their environment friendly cars, for example, have only made life harder for ordinary people as footpaths have been removed to widen the roads for cars. Such theories have little relevance to developing countries. Intellectuals in these countries must understand and counter such theories in international forums and organisations.

2003 – May [5] Write a precis of the following passage reducing it to about one-third of its length:

The rash of strikes, gheraos and alarming rates of absenteeism in our country is a symptom of despair of various classes of workers and employees in the face of extreme in sensitivity on the part of management and employers in both private and public sectors. Unfortunately, management, barring a few cases, has a peculiar tendency to sleepover even the genuine demands of workers. Only when the normal Ufa in the factories or in the organisations is Completely or substantially disrupted by worker’s strikes with consequent colossal loss of production that management wakes up from its deep slumber to take necessary remedial measures. In the wake of a spate of strikes by workers almost everywhere in the country, managers and researchers have been attempting an anatomy of the problem.

It is a pity that absenteeism- a major problem in the workforce today- continues to elude the attention of the government, management, trade unions, and researchers. And this despite the fact that the cost of absenteeism is quite high for the society, the affected organisations and individual employees. A high rate of absenteeism adversely affects the industrial growth. For a country like India which is on its way to rapid industrialisation, the cost of absenteeism is quite high. Absenteeism is also harmful for an organisation because of its costs and operating problems. It nof only leads to decline in production and profits but also in reduced productivity. In the case of frequent absenteeism, either casual or temporary workers, who are comparatively inexperienced are appointed. Where the existing staff to do extra work on overtime basis, it often results in accidents and other mishaps in factories.

The problem of absenteeism should be taken more seriously by all concerned- management, trade unions and the Government. Management should take specific steps to reduce absenteeism only after identifying the factors responsible for it. Complete elimination of absenteeism appears to be rather difficult, but it can be reduced substantially through some suitable measures. Before taking any action on the problem of absenteeism, a systematic study should be carried out in organisations/departments affected by absenteeism to find out its various aspects, such as the number of absentees in a particular period, the rate of absenteeism, the number and names of chronic absentees and part of the year in which most of the absenteeism takes place. Such a study would facilitate a proper diagnosis- of the problem and that in turn would further help management in taking specific remedial measures. (10 marks).

Answer:

Problem of Absenteeism in an Organisation: Today, absenteeism is a major problem in the workforce. A high rate of absenteeism adversely affects the society, the organisation, individual employees and industrial growth. Absenteeism is harmful for an organisation because of its costs and operating problems. Production, productivity and profits get declined. The problem should be considered more seriously by management, trade unions and the Government. Specific measures should be adopted by the management to reduce absenteeism by finding out the factor responsible for it. Before taking any step on the problem of absenteeism, a systematic study should be carried out in an organisation. Such as the number of absentees in a particular period, the rate of absenteeism the number and the names of absentees. With such a study management will be benefited in taking specific remedial measures to reduce absenteeism.

2003 – June [7] Make a precis of the following passage in about one -third of its length and suggest a suitable title:

2001 was a year many would like .to forget. It began with the catastrophic Gujarat earthquake on 26th January and ended with the terrorist attack on the Parliament on 13th December. There was also the impact of 11,h September, intensified terrorist activities and the gathering of war clouds.

On the economic front, the scenario was equally gloomy. The general economic slowdown, which began in 2000, gathered momentum in 2001. GDP growth for 2001 will be less then 2000. No doubt, the sudden scaling down of GDP growth for 2000-01 from 5.2% to 4% by the Central Statistical Organisation may create an illusion of growth for the year. Almost anyone in business will agree that 2001 was a much tougher year than before. Indeed, it may turn out to be the worst year since 1994.

Corporate earnings fell both in the manufacturing and the service sector. A survey of 1,603 manufacturing companies by the Confederation of Indian Industries reveals a 9% decline in post-tax profits for April-September, 2001, and a 3% decline for 401 service sectors companies. Stock prices, too, have taken a beating : the BSE Sensex lost almost 700 points during the year.

It is being claimed that agriculture has done relatively well in 2001. This may be so. However, it is important to note that higher growth, if any, will have occurred after two very poor years. In any event, this growth is yet to translate to higher agricultural income. The leading market researches and sales data suggest that rural demand is still sluggish and subdued.

General uncertainty and lack of consumer confidence have taken their toll on certain companies. Market growth has slowed down, and several product categories witnessed negative growth in volumes. After the scorching 15 to 20% growth of the 1990s, when the fast moving consumer goods (FMCG) sector truly lived up to its name, the FMCG market actually declined by 4.1% in November 2001. Not surprisingly, a renowned cosmetic company’s sales grew by just 3.5% in 2001 as against 4.5% in 2000 and 7.0% in 1999. (15 marks)

Answer:

Some of the suggested titles are:

(i) The year 2001

(ii) The Economic Downturn in 2001

The Indian economy was hit by the catastrophic Gujarat earthquake in the beginning of the year and ended with the attack on Parliament on December 13. The attack on WTC on 11th September also affected the Indian Economy.

On the economic front the scenario was of general slowdown, drop in corporate earnings and sluggish demand. There was decline not only in GDP growth but also in the earnings of manufacturing sector. Stock prices were severely beaten. Though agriculture performed relatively well, but the growth in rural demand and agricultural income was not perceptible. Even the FMCG market declined despite tremendous growth in 1990s. Indeed, it was a very difficult year and difficult to forget.

2003 – Nov [5] Write a precis of the following passage reducing it to about one third of its length:

Career development relates to the readiness for progression through a series of positions during an individual’s working life. Career issues-emerge as a result of increasing stress of the organisation on developing its human resources and growing expectations of the individuals about what need to do to facilitate career growth as they become more educated.

Career development as a responsibility of the organisation necessitates collection and analysis of data, decision-making and their implementation. It must be realised that organisational objectives can be accomplished effectively by integrating individual needs and organisational goals. Usually, line supervisors and human resource managers are responsible for implementation of Career Development Programmes. The line supervisors are responsible for the assessment and development of their subordinates and for assisting them in attaining desired positions with the help of varied measures especially counselling. Indeed, their day-to-day involvement in career development of subordinates stems largely from counselling. Although they need not be professional counsellors to accomplish effectiveness in career development, they must realise that it forms an integral part of managing, and varied skills and techniques are required to perform this role.

The human resource executives play an important role in promoting the development of career paths to satisfy the needs of people. They provide career planning assistance to employees, arrange training for supervisors in career development techniques and coordinate career development programmes. Indeed, a human resource department initiates varied career development programmes in the organisation. (10 marks)

Answer:

Career development of an individual’s working life is the expectation of not only the individual but also of the organisation to develop its human resource organisation. Objectives can be accomplished only when the individual needs and organisational goals are integrated. For this there should be assessment and development of the subordinates and they should be assisted in attaining desired positions. This becomes an important part of managing. For this professional counselors may be appointed. A human resource executive provides career planning assistance to employees, arrange training for supervisor in career development techniques and coordinate career development programmes. Career development programmes should be initiated.

2003 – Dec [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Tax laws have perhaps never been free from disputes and litigation. Indeed they are notorious for their complexities and intricacies. They comprise legal texts, written in unwinding and involved language, running into hundreds of pages. The tax procedures are often condemned as notoriously complicated an opaque, far from the understanding of ordinary tax payers. All this adds greatly to the compliance cost. On the top of it, tax structures that are not compressive in coverage and find sustenance on exceptions and exemptions are prone to attempts of tax avoidance and tax evasion.

So much is the enormity of specialisation needed in dealing with the problems of interpretation of tax laws that tribunals manned by experts are often needed to resolve disputes between the assessees and the tax departments. Hence most tax administrations are equipped with multiplayer machinery of adjudicators.

The machinery in respect of customs,and excise is well established and an old one. The Assistant Commissioner/Deputy Commissioner initially adjudicates a dispute at the initial stage. Appeal against his order lies to the Commissioner (Appeals). The Commissioner himself adjudicates more important cases. Appeals against the order passed by a Commissioner or Commissioner (Appeals) lies to the tribunal, the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT). A committee headed by a judge of the Supreme Court selects its members. A judicial member is qualified to be a judge of the High Court. Technical members are selected from amongst senior officers of the customs and central excise service. While the judicial members are professionally trained and well-versed in law, the technical members are immensely knowledgeable in customs and excise laws and procedures. Their practical experience of tax administration comes handy in quick understanding of the disputes on facts and law.

The tribunal is the final authority on the adjudication of facts. However, as regards the question of law, the customs and excise laws do not confer the same superior status on the tribunal. Yet its powers and jurisdiction far of far-reaching significance. (15 marks)

Answer:

Suggested title: The Importance of Tax Laws and Tribunals

The language of law, especially the tax law, is extremely complicated. It needs a great deal of expertise and experience to interpret the law. If that is not done, there arises tax avoidance and evasion. Tribunals are set up to settle disputes between assesses and the tax departments. Adjudicators may be the assistant or deputy commissioner, initially. Then comes the Commissioner (Appeals). When an appeal is made against the Commissioner (Appeals), the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT) is setup. It comprises judicial and technical members. The judicial member, a judge is well versed with the intricacies of law. A technical member is immensely knowledgeable about customs and excise laws and procedures. Together, they can settle any dispute. The Tribunal’s handling may not be final but may be far-reaching in significance.

2004 – May [5] Write a precis of the following reducing it to about one third of its length and give suitable title:

Mr. Soni had recently joined as Managing Director of a Car manufacturing company, which at present is incurring heavy losses. Mr. Soni has been entrusted with formidable task of rejuvenating the company. He faces many challenges to achieve the task such as controlling costs and expenses, increasing productivity and boosting morale of the employees so that they unhesitatingly cooperate to achieve the set standards of output.

Mr. Soni in his previous company, also as a Car Manufacturing Company, as Deputy Managing Director, had proved to be a proficient manager and a talented leader, who had successfully inspired his employees to increase the productivity. He was commanded for his maximum concern for both people and production and also for bringing about an integration and harmony between the needs of employees and of production.

In the new company also Mr. Soni continued his policies of participative management and his high concern for production and people. With a view to reviving the company back to health, he affected some major changes. First of all he had decentralised the organisation so that subordinates could exercise their discretion and initiative in decision-making and their

2.652

imagination and creativity in performing other managerial functions. Furthermore he empowered Junior Managers to sanction expenditure upto approved limit without seeking prior approval of the higher management. Communication system was also improved to facilitate the flow of upward and downward communication.

He also adopted several measures to cut cost and wasteful expenditure. He banned donations to charitable institutions, but increased the amount being spent on the welfare activities of employee.

Some employees are of the view that lot of things are being done, but they might not be effective in the long run. Majority of employees disagreed with them and said, okay, we will give it a try. (10 marks)

Answer:

Optimistic Managerial reforms of the New Managing Director:

Mr. Soni, the new Managing Director of a loss making car manufacturing company has been brought in to introduce managerial reforms by reducing costs and increasing productivity, which he had successfully achieved in his previous assignment.

As an ideal leader, Mr. Soni has decentralised the organisational hierarch to introduce participative rrlanagement. To achieve creativity, junior managers are inspired with increased powers and responsibilities. Communication system is also modernised. Though some employees are apprehensive of Mr. Soni’s policies, rest want to try for success.

2004 – June [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Another convocation, another invocation. At the 34th Convocation of the

ll.T Delhi, 1,200-odd students were awarded their passport to the good life and addressed by the Vice-President Shri Bhairon Singh Shekhawat. The students themselves might have preferred to hear Bill Gates or Larry Ellison, or even Sabeer Bhatia or Vinod Khosla – in short, someone they could easily relate to- rather than a representative of political India. Especially since Shri Shekhawat once again trotted out that old cliche about ‘brain drain’. The Vice-President did concede that India had failed to create a suitable environment and infrastructure for these world-class achievers, leaving them little option but to head abroad. But there was an element of regret in this

observation, and an undertone of accusation against the bright students who migrate. Never mind that their remittances are helping keep the domestic economy afloat. Never mind that they have formed a powerful lobby group which pushes India’s interests in the international capitals and conference rooms. This is not so much brain drain as brain gain. But our politicians still insist on placing a burden of guilt on the soldiers of the Indian Diaspora.

Thankfully, it is a burden the middle-class now refuses to accept. Because years of navigating through the hazards of the obstacle-ridden Indian system have imbued it with a clear vision that can easily see through humbug and hypocrisy. The middle class knows that while our politicians constantly deride those who go abroad as unpatriotic, many of their own children have not only studied overseas but have also settled down to lucrative careers there. It knows that our netas will exhort the janta to learn Hindi or local languages, but will make sure to send their own children to the best English-medium schools. Thankfully, most Indian parents were intelligent enough not to get taken in by language chauvinists or else the outsourcing booms may never have occurred. Today, there are- laments about the ‘secession of the successful’ and this phrase is unquestionably accepted by the media and academicians. But perhaps its time [o ask, have the successful failed Indian system, or is it the other way around ? The State can’t provide most citizens with basic facilities like power, water and security – all of which are plentifully available in ‘VIP’ areas. So why blame citizens if they refuse to accept these double standards and get on with improving their own lives ? If they don’t, who will ? Certainly not the government, which specialises in double talk, not action. (15 marks)

Answer:

Titles: (a) Brain Gain

(b) Political Hypocrisy unravlled

(c) Politicians’ indulgence in double-dealing.

Contrary to the expectation of 1200-odd Degree holders, the V.P., a political leader, addressed the 34th IIT, Delh: convocation and lamented the ‘brain-drain’. In site of admitting the Government’s inability to create a suitable working environment for the best. Shekhawatji regretted the migration a^ unpatriotic and totally ignored their contribution in enhancing the

country’s foreign exchange exchequer and forming an Indian lobby abroad in voicing Indian interest. It is brain gain rather than brain drain. To the common people the hypocrisy of the Indian politicians is exposed when they send their children to the best English-medium schools and simultaneously advocating average Hindi-medium schools to the middle class. They clandestinely send their children abroad for education or employment while dissuading the most brilliant to go abroad and denying them the basic facilities like power, water and security, which these VIPs enjoy in abundance.

2004 – Nov [5] Write a precis of the following passage reducing it to about one-third of its length and give a suitable title:

Mr. M.K. Sinha was appointed as office assistant in V.K. Institute of Technology. The appointment letter stated that his appointment was on a temporary basis and his services could be terminated at any time with one month notice or one month salary in lieu of notice period. Assistant Registrar of his department observed that the performance of Mr. Sinha was not at all satisfactory. He was neither punctual nor regular in his office. He made many mistakes in his work and often argued with his colleagues. He was found to be indifferent, irresponsible and in disciplined. Therefore, he was orally warned for a number of times by his Assistant Registrar to improve his work performance, but he was never issued with any written memos or notice and nothing was kept in record by way of adverse remarks against him.

As per the Institute’s rule, the temporary employees became permanent automatically after two years of service. So at the end of one year and eleven months, the Assistant Registrar gave in writing to the Director that Mr. Sinha should be removed from his job, as he had not shown any improvement at the work place and he may be given one month salary in lieu of one month notice period.

Mr. Sinha went to the court of law stating that natural justice was not given to him as there was no adverse record against him in writing. He remarked that if he could be tolerated for one year and eleven months, he could not be regarded as totally incompetent. Mr Sinha further argued that the Institute did not offer enough guidance and support to him, as a result of which he could not perform very well and committed several mistakes at his

work. The Lower Court and subsequently the High Court and the Supreme Court upheld his case and asked the Institute to reinstate the office assistant. The Institute had to do it.

The Chairperson of the Institute soon after this incident issued a confidential circular to all the Directors that in future every Director must keep detailed records of omissions and commissions made by every temporary employee and even a small error committed must be carefully recorded.

(10 marks)

Answer:

Title: Written communication: A record and proof. Mr. M. K. Sinha was appointed as office assistant in V. K. Institute of technology on a temporary basis. His appointment letter stated that his job can be terminated any time with one month notice or one month salary. The assistant registrar noticed many flaws in Mr. Sinha’s work and warned him time to time orally. On completion of 1 year and 11 months the Assistant Registrar forwarded a letter to the Director to terminate the services of the Mr. Sinha.

Mr. Sinha challenged this in the Court stating there is no written proof against his inefficiency. The Court decided in his favour and he was retained in the job. This incident made the Chairperson to issue a confidential letter to all directors to keep a written record of every temporary employee.

2004 – Dec [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

When the Prime Minister Manmohan Singh met the President George Bush over breakfast, he wasted no time over India’s possible admission into an enlarged UN Security Council. During that meeting and at the New York Stock Exchange (NYSE), where he talked to a guest list whose collective worth was $1 trillion, India’s economist Prime Minister focused on growth, investment and trade. Finally, Indian diplomacy has come of age. Instead of platitudes about ‘reforming1 the UN, our place in the comity of nations and the brotherhood of man, Singh has focused, laser-like, on what the country really needs-about $150 billion in US investment through the next four years or so. In return, he has promised prospective investors a stable polity, a low-cost hassle-free business environment, continued reforms and the alluring prospect of sharing the dividends of high growth. Foreign policy

works might be dismayed by Singh’s apparent lack of enthusiasm in lobbying for a permanent seat in the UNSC, but that is easily explained: The Prime Minister believes, correctly, that Indians should first prosper and strut later.

Even today, the average Indian makes about $550 per year, compared to $1,100 for the average Chinese, a South Korean’s $12,640 and the staggering $37,500 that an American earns. How long will it take to catch up? Back of the envelope calculations show that even if the country grows a stunning 10% every year for the next 25 years, the average Indian will be worth 10 times what she is today-nowhere close to American incomes, but about as properous as today’s Czech, a little better off than Mexicans, Brazilians and the Polish. However, the good news is that at that level of income per head, the size of India’s economy will be enormous: Its share of global income could be as high as 7%, more than what Germany weighs in at today. Sihgh has chosen his priorities well. He has made out a powerful case for economic diplomacy to replace fuddy-duddy lobbying for seats that carry prestige, but tittle else. Back home, the Prime Minister will have to act on his promises. The first thing he’ll need to do will be to write a hassle-free policy to govern overseas investment. What’s the point of inviting investors home if you’re going to strangle them with red tape? (15 marks)

Answer:

Title: Economic Diplomacy for India

Prime Minister Manmohan Singh recently shifted the emphasis from India’s proposed membership of the UN Security Council to an agenda for economic growth. He sought an investment of $ 150 billion and promised a stable govrnment and economical infrastructure with potential for high growth. Foreign policy experts wanted him to bid for a permanent seat in Security Council, but the Prime Minister clearly believes that an international role for India would automatically follow economic prosperity. The annual income of an average Indian is only half of a Chinese and one-seventh of an American. Though India cannot catch up with the latter even with a ten percent growth rate over the next 25 years, it can overtake Germany in its share of the global income. However India will have to cut out red tape for its economic diplomacy to succeed.

2005 – May [5] Write a precis of the following passage reducing it to about one-third of its length and give a suitable title.

Rama Limited of Meerut is a multi-product company. It was established in April, 1998. It produces cosmetic products for college and office goers-both males and females. It enjoys approximately 15% market share of Northern India. Reputed brands like Lakme, Ponds, Yarlay, etc. are the competitive players. It has been fortunate enough to achieve its target right from the year of its inception. The strength of the Company is its adaptation strategy. It adopts its products, pricing promotion and place strategies in the light of environment. It is why it has established its equity among the target group.

The company organises its activities on geographical basis. It recruits its employees through the internal sources.

Mr. Suresh Oberoi, manager of the South Division happens to be the son of HRD Vice-President. Though he is qualified for the post but his behaviour towards his colleagues and junior staff Is not commendable. He does not bother for his seniors too. His nature is sullen, impatient and non-cooperative. The company has two written complaints about the misbehaviour but has been helpless in taking action against him because of his father’s position In the company.

During a meeting of the Product Review Committee on 7,h October, 2004. Mr. Oberoi’s unexpected behaviour was noticed. A serious discussion was going on as regards selection of an area for testing before launching a perfume in the market—Number of views were expressed by different members of the committee on this issue. Mr. Oberoi took the opportunity to speak. He not only condemned ridiculously all the views expressed by the members, but also passed some serious remarks against some senior members of the committee. The members felt insulted and the meeting was suspended without any conclusion. The matter was reported to the Marketing Vice-President with a request that an appropriate action be taken against Mr. Oberoi. The Vice-President was left with no option but to ask Mr. Oberoi to .explain as to why not disciplinary action be initiated against him for his misbehaviour in the meeting. Realising the severity of the situation Mr. Oberoi tendered apology for his misbehaviour and assured not to repeat the same in future. The matter was settled and he was excused.

Taking notice of this event the management of the company decided to change its recruitment policy. All further appointment in the company will be through external sources and no internal source of recruitment will be tapped. (10 marks)

Answer:

Title: Change in Recruitment Policy:

Rama Ltd. of Merrut, established in 1988 is a multi product company which produces cosmetics for both male and female college and office goers. It completes with the reputed brands and enjoys approximately 15% market share of North India. This is basically due to its successful adaptation strategy. It recruits through internal sources. Mr. Suresh Oberoi, manager of the south division is the son of HRD Vice President. Although he is qualified for the job but his behaviour with his colleagues both juniors and seniors, is not commendable. Inspite of written complaints against him action could not be taken due to his father’s position. However during a meeting of product Review Committee his behaviour was so rude that the senior members felt insulted and meeting had to be suspended without conclusion. This was reported to his father, the Vice President. The Vice President sought explanation from Suresh Oberoi who tendered apology for his misbehaviour with an assurance not to repeat the same in future. He was excused. This incident led to the change in recruitment policy of the company. The company decided that all the appointment will be through external sources and no one will be recruited from internal sources.

2005 – June [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Ever since the liberalisation process was initiated by the government in 1991, Indian organisations are striving to put themselves on the world map of world class business. In the context of the revised economic policy, there is a great deal of realisation that even to exist in domestic buisiness, an organisation should have a product or service comparable to the world class organisations or else they will have to leave the scene giving way to more competitive organisations. The liberalisation process which started with the private sector industries continues with the introduction of the Insurance Bill throwing open the insurance sector to MNCs and private sector investment.

With the stand taken by a major political party on this issue, it is very obvious that it is going to be fait accompli that the fate of the insurance industry is like :he fate of any other industry having to compete with efficient and effective organisations, both domestic and foreign. When one looks at the reality of the situation, one thing is very clear: whichever party is going to be in power, there is no other alternative for the Indian organisations but to prepare themselves to become globally competitive. In a nutshell, it is going to be an era of survival of the fittest. In the light of the above environment, organisations have realised the need for change and are initiating a lot of interventions to position themselves with products and services comparable to world class organisations. With the entry of multinational organisations, a customer has a very wide range of choice to select from and he is going to choose a product or service which is cost effective without any compromise on quality.

In the era of monopoly and control, the following formula was valid for any organisation : Cost + Profit = Selling Price. In. the light of protection enjoyed by many organisations, whenever there was a cost escalation or when the profit was inadequate, the organisations were in the envious position to increase the price without any resistance for the inefficiency and ineffectiveness. It was a sellers’ market. But with the entry of competition, the formula has changed to Selling Price – Cost = Profit. This formula assumes great significance and will change the fate of many organisations. The selling price is decided by the competition and the organisations will find themselves in a buyers’ market. With the availability of cost effective products with superior quality, organisations cannot increase the price at their own option. This means that there is no other alternative but to become effective by improving the productivity parameters of quality, cost, delivery and service.

(15 marks)

Answer:

Title: The Benefits of Competition:

Liberalisation process has led Indian organisations to strive for world-class business. Without world-class products or services, organisations cannot exist even in domestic market. Recently, liberalisation has opened up the Insurance sector to MNCs and Private Sector Investment. The future points to an era of survival of the fittest and as such Indian organisations have to prepare themselves to become globally competitive. With the entry of multinationals, a customer is free to choose a product that is cost effective without having to compromise on quality. In the era of monopoly, when the formula ‘Cost + Profit = Selling Price’ was in vogue, organisations were free to increase the price without any resistance from customers. It was a seller’s market then. But now it is the buyers’ market. The concept of competition has now changed the formula to: ‘Selling Price – Cost = Profit’. This forces the organisations to become effective by improving the productivity parameters of quality, cost, delivery and service.

2005 – Nov [5] Write a precis of the following passage reducing it to about one-third of its length and give a suitable title:

Whatever be our long-term strategy, there is no getting away from the fact that we cannot afford to neglect the export of our traditional commodities (jute, tea, textiles) which even today account for over about 40% to 50% of our exports-. But while trying our best to maximise receipts from our traditional export, we must find new commodities and new markets for our exports. While doing our very best regarding the exports, say, of cotton tektiles, we have to bear in mind that as an export industry cotton textiles has not too bright a future. This is an industry, which easily gives birth to import substitution. Its requirements of capital and technical know-how are such that even a poor country can start it. Since the economies of scale are not of great importance in this industry, even a country with a small population and with low per capita income can run an industry like this. As far as jute is concerned, the process of finding its successful substitutes is well in progress. So to increase our exports we have to find new commodities in which in the long run our comparative advantage is likely to be high as may well be the case with steel and some other engineering products.

In planning our export strategy we have to take due notice of the intense desire of every underdeveloped country to industrialise itself. There is likely to be less scope for the export of finished products. On the other hand, exports of semi-finished commodities, which still leave scope for further processing, are not liable to be that unwelcome to the importers. Further, we have to diversify our contracts with foreign countries. Too great a dependence on a single country for export of any commodity is sure to lead to early import substitution by domestic production in that country.

(10 marks)

Answer:

Title: Export Strategy: Traditional commodities like jute, tea, textiles account for over 40% to 50 % of our exports. However, we must find new commodities and new markets for export. On analysing the prospects of the traditional commodities we find that cotton textiles does not has a bright future as it easily gives birth to import substitution. Even for jute industry, the process of finding its substitute is on way. Thus we have to look for goods like steel whose long run comparative advantage is likely to be high.

While planning the export strategy due notice should be given on the desire of underdeveloped country. They are on the way of industrialization. Therefore the scope of semifinished goods is likely to be more than that of finished goods. We should also not depend on a single country for export but diversify our contracts with other countries.

2005 – Dec [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

In 1989, when we set sail on a journey of excellence, little did we realise then that ‘global renown’ and ‘unprecedented business success’ will not remain just our dreams. Even though we had envisaged our transformation into what we are today, and had complemented that vision with down-to-earth practicality, lateral thinking and hard work over the years, the rewards have nevertheless pleasantly surprised even the most optimistic amongst us. For, we have virtually experienced a metamorphosis. Transforming from merely a leather garment exporter into one of the world’s top 25 leather garment exporters, and then into an Indian multinational company dedicated to keeping fashion in fashion. What we had envisioned years ago is crystallising into reality today. The future beckons invitingly, and we are ready to surge ahead.

Today, the Bhartiya Group is a conglomerate of fashion apparel companies, with the inherent advantages of multi-location design, manufacturing, sourcing, and research & product development capabilities. The parent company, Bhartiya International Ltd., is India’s largest manufacturer and exporter of leather apparel. The non-leather category is being handled rt>y World Fashion Trade, a 100% subsidiary based in Hong’Kong, whibh has bden significantly expanding under an ongoing expansion drive in the region. Several subsidiary companies, already created at various strategic locations across the world as marketing, design and sourcing arms of Bhartiya, have begun to bear fruit. The vision of becoming ‘locals’ globally is now rapidly turning into a reality for us.

In the competitive milieu of the modern times, what is that unique attribute that has enabled the Group to come close to realising its vision in so short a time? On the one hand, it’s the Group’s inherent ability to devise fashion solutions that integrate market and consumer research, product development and design, sourcing, manufacturing and delivery of finished garments on a ready-to-display basis anywhere in the world. On the other hand, it’s also about a vision that every member of staff shares with an all-pervasive passion, which sees the Group’s soaring aspirations being fulfilled by the innate power of creative ingenuity. It is this vision that gives the Bhartiya Group a distinct edge and incorporates flexibility, speed, efficiency and responsiveness to the supply dynamics without compromising on design and quality.

Yes, today we are a reputed global fashion apparel-company.

Yes! Our vision is turning into reality. And, yes! We will continue to dream. (15 marks)

Answer:

Suggested Titles:

(i) Dreams Come True (ii) Vision Fulfilled (iii) Bhartiya Group – A Success Story

Note: Students may give any other appropriate title.

When Bhartiya International began its global mission in 1989, it was not sure of its global recognition and success coming so soon and so much. Today, it is among the top 25 leather garment exporters, and Indian MNE providing multi-category fashion solutions., It has created design, manufacturing, R & D and product capabilities spread across the globe through many subsidiaries. These subsidiaries are treated as local companies in respective countries. Leather exports are handed by parent company and non-leather business by its Hong Kong subsidiary. Group Bhartiya’s vision has been realized due to integrated marketing and manufacturing and staff vision to provide some creative solutions passionately. The integration and staff vision have made Bhartiya a genuine customer friendly global fashion company to keep fashion in fashion. But the mission is still not over.

2006 – May [5] Write a precis of the following passage reducing it to about one-third of its length and give a suitable title:

In all modern economies and societies, money plays a crucial role as a tool of motivation, it is recognised to have the ability to satisfy several types of needs and wants of people; the basic creature comforts pertaining to food, clothing and shelter; the psychological needs for safety and security as also the need for status, prestige and esteem. All these needs have both quantitative and qualitative implications. People not only seek to have more of the same thing, but they also aspire to have better quality of things such as an independent house instead of an apartment, exclusive club membership and so forth. As more and more things are monetised, money is in a position to buy several types of tangible and intangible satisfactions. In a way, for a large majority of people, the need for money almost replaces several other needs with the result that money earning becomes an obsession and mission for them.

Yet it is physically impossible for a well-educated, intellectual, or brave man to make money the chief object of his thoughts; just as it is for him to make his dinner the principal object of them. All healthy people like their dinners, but their dinner is not the main objective of their lives. So also, all healthy-minded people like making money-ought to like it, and enjoy the sensation of getting it; but the main object of their life is not moriey-it is some- thing better than money. A real soldier, for instance, mainly wishes to do his fighting well. He is glad of his pay-very properly so, and justify complaints when he is not given it. Still, his main notion of life is to win battles, not to be paid for winning them. Same is true of doctors. They like fees no doubt, ought to like them; yet if they are brave and well-educated, the entire object of their lives is not fees. They, on the whole, desire to cure the sick; and if they are good doctors, and the choice was fairly put to them, they would rather cure their patient, and lose the fee than kill hirn and get it. And so with all other brave and rightly trained men; their work is first, their

fee second- very important no doubt, but still second. However, in every nation, there are vast numbers of people who are ill-educated, cowardly, and more or less stupid. And with these people, just as certainly the fee is first and the work second; as with brave people the work is first and the fee second (10 marks)

Answer:

Precise:

TITLE : Priorities of Life : Money, in todays modern world has the ability to satisfy the basic, psychological, safety and security need. But more than these needs, today the need of man seems to be to earn and have more money. It has become an obsession and mission for them.

But it is not so for all. As all healthy minded people eat food to live and not live to eat food so also healthy minded people like to earn money but their main object in life is not just to earn money. They give more emphasis on satisfaction of their psychological needs. For example the main object of a soldier is to win a battle rather than getting paid for it. Similarly doctors choose to cure the patients first than to get his fees. Still, there are large number of people, mostly ill-educated and cowardly who prefer money to work. As for brave people, work is first and fees comes next.

2006 – June [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

The Kashmir earthquake, hurricane Katrina and Rita, floods in Mumbai and Guatemala, the Indian Ocean Tsunami —is the world entering an era of more frequent natural catastrophes ? In its 2005 World Disaster Report, released this month, the International Red Cross counted 360 natural disasters in 2004, up from 239 in 1995. But the truly striking features is the sharp increase in the number of people killed by catastrophes : 9,01,177 from 1995 to 2004, according to Red Cross, compared to 6,43,418 people in the previous decade.

One explanation for the numbers is beyond dispute : population growth. More and more people are living in at-risk areas, whether it’s the hurricane hit coast lines of Florida, the flood plains of eastern China or earthquake zones of Indonesia. Even in Alpine Kashmir, where the latest quake struck, the population has increased by an estimate of 60% between 1981 and

  1. No matter where natural disasters hit, they will affect more people today than they would have done in the past — and will affect more still, tomorrow. Bangladesh, prone to floods and earthquakes could add upto 100 million people to its population of 144 million by 2050.

We can’t easily change demographics, and we can’t prevent earthquakes or hurricanes from happening. So preparation against nature’s hammer blows will become increasingly vital, especially in Asia, where an estimated 90% of the people affected by disasters over the past decade live. Earthquake experts refer to the ‘seismic gap’ — the difference between rich and poor cities’ abilities to withstand an earthquake. In 1989 for example, a 7.1 magnitude quake killed 63 people in San Francisco; in 2003, by contrast a 6.5 temblor destroyed 80% of the city of Bam in Iran, and killed 26,000 people. Closing the seismic gap doesn’t need cost the earth — Bangladesh has managed sharply to cut death rates from flooding simply by building platforms that allow to escape high water. But it has to oe done. A 2004 study by Tearfund, a Christian relief agency, found that less than 10% of the money spent on disaster aid by government agencies and the World Bank went to preparation. If that doesn’t change, we may look back on 2005 as an easy year. (15 marks)

Answer:

Titles: The Increasing Menace of Natural Catastrophes

OR

Natural Catastrophes – Cause and Cure Precis

The frequent world-wide natural catastrophes like earthquake, hurricane Katrina and Rita, floods and tsunami point out the world’s proneness tc recurrent natural catastrophes. The 2005 World Disaster Report shows that natural disasters rose from 239 in 1995 to 360 in 2004, resulting in a sharp increase in death numbers from 643, 418 in 1995 to 901, 177 in 2004. One undisputed reason is population explosion forcing people to live in hazardous hurricane hit coasts of Florida, flood-plains of China, earthquake zones of Indonesia and Alpine Kashmir. Changing demography and preventing natural calamity being impossible’, preparation to face them is vital. By

building platforms Bangladesh has reduced death rates. Over all, the Governments have been spending very little on preparation, which adversely affects the disaster management.

2006 – Nov [5] Write a precise of the following passage reducing it to about one-third of its length and give a suitable title :

The key to a nation’s future is in its schools. If that is so our future is bleak. The World Bank’s Development Policy Review for India gives two interesting facts. One, a nationwide study on teacher presence in schools found that it is less than 50 per cent in most States. Even in States like Kerala which has achieved significant progress in literacy, teacher absenteeism is as high as 40 percent. Two, more than 50 percent of children living in urban areas in eight major states are dependent on private schools for elementary education. What these data reveal is the lack of involvement on the part of the state in primary education. It appears to have abandoned its constitutionally-bound role of providing education to children. In the private sector, studies have found that most of these schools function outside the purview of all regulations and hence have no obligation to maintain minimum standards expected in teaching and learning.

A recent study of rural schools claimed that more than half of Class V students in five states that came low on education infrastructure could not read at the levels expected of Class II students. More than two-thirds of the students could not cope with elementary maths. The refusal of the state to address the disastrous condition of primary education, both in terms of shortage of schools and poor standards, has spawned unaided, unregulated and expensive institutions. A gullible and desperate people who have realised the worth of quality education, are forced to send their children to these teaching shops. The shortage of good, affordable schools is spawning a social apartheid that will severely impact the quality and quantity of workers in the future.

The Right to Education Bill was a step in the right direction to address these anomalies. Sections within the government seem to be against the Bill and have stymied its introduction in Parliament. As in the case of most public institutions, state-run schools are also in need of institutional reforms. These would require them to be accountable to the community rather than to a state

bureaucracy. It has also been suggested that Panchayati Raj institutions should have a say in the running of schools and even recruitment of teachers. Evidence from Kerala and Nagaland suggests that community supervision, particularly parent-teacher committees, can significantly improve standards in schools. Institutional reforms are linked to political process at the grass roots. Politics that recognises education as a right of the citizen and will build organic links between educational institutions and the community is essential for reforms to succeed. (10 marks)

Answer:

Title : Need to Improve Quality in Education.

Precis: If the key to a nations future is in its school then our future is bleak. The World Bank’s Development Policy reveals the lack of involvement of state in primary education almost 50% of children living in urban areas in eight major states are dependent on private schools. And the private schools being outside the preview of the regulation of the state have no obligation to maintain minimum standards expected in teaching and learning. In rural areas a study revealed that 50% student of class V in 5 States could not read the lessons of class 2. More than 2/3rd unable to cope up with elementary maths. The negligence of state in this regard has paved way for the private schools to come up which are more like teaching shops rather than institutions providing quality education. This will certainly have a serious impact on the quality and quantity of workers in future. However the Right to Education Bill has come up with excellent suggestions under severe opposition from sections within the government itself. It suggests the state run schools to be made accountable to the community rather than to a state bureaucracy. It also suggests that Panchayati Raj Institutions to have a say in managing schools. But all this is possible when politics recognise education as a right of the citizen and where there is a link between educational institution and community as is evident is Kerala and Nagaland where community supervision has moved significantly towards improving the standards of school.

2006 – Dec [7] Make a precis of the following passage in about.one-third of its length and suggest a suitable title.

Agriculture Minister’s sympathy for biscuit-makers is not misplaced, but he should not lose sight of larger issues. Biscuits may continue to come cheap, with the government slashing import duty on wheat to zero till December, but the shortfall in wheat output is for real. While the arrival of five million tonnes of imported wheat is expected to take care of the current shortage, the government needs to reframe its policies to address a situation of food deficit.

Gone are the days of overflowing granaries of the Food Corporation of India (FCI). Now, FCI godowns lack the stocks to stabilise the market. How does one explain this transition ? The fact that private procurement of food- grains has increased in recent years to meet the needs of big players in the food business should not detract from a basic issue – inadequate food output. We aren’t and never were, a food self-sufficient country. According to studies by the Indian Council for Medical Research, even our cereals output barely measures up to per capita nutritional needs. This cannot change unless India’s food output, now growing at 2% per annum, outstrips population growth. While imports are always an option to plug the supply- demand gap, it should be seriously considered only when possibilities to improve productivity have been explored. India holds a comparative advantage in agriculture, with its unique soil and climatic conditions. It would be foolish to spend wastefully that away. Wheat output has stagnated at TOTS million tonnes, clearly suggesting that the green revolution has exhausted its potential in Punjab and Haryana.

The Eleventh Plan rightly calls for a second green revolution, so that Indians can produce and consume increasingly larger quantities of wheat, value-added food products and industrial goods. At present, a flourishing middle class, rural and urban, is driving a change in food consumption patterns. Hence, this represents a shift away from coarse grains to finer varieties and from cereals to a more diversified diet. While the growth of food processing, in order to cater to this segment, will work to the farmers’ advantage, food output should also increase so that consumers as a whole are not put to hardship. The government must promote land consolidation as a new mode of land reform so that farming remains a viable activity. Instead of sinking huge sums in new irrigation projects, it should try to turn around

existing systems that have fallen into disuse. State support should be diverted away from regions that have hit diminishing returns to areas that have productivity potential. Let us be a nation of happy food growers, biscuit- makers and consumers. (15 marks)

Answer:

Title: Handling Food Shortage

India is predominantly an agricultural country. Because of its distinct soil and weather conditions it enjoys comparative advantage. Alas! We are still not self-reliant in food and are forced to import to meet the rising demand. The government has also been trying thus to maintain prices. To overcome current wheat shortage because of depleted stocks with FCI, huge imports are being made duty free. The real problem is neither current shortage nor increased prices but to overcome food deficit for ever. Another green revolution is required to increase production and productivity to meet consumption needs of wheat, value-added products and industrial goods. Achieving better productivity requires land consolidation, energizing existing water resources and motivation. Subsides be shifted to areas achieving higher productivity. Population growth has to be kept lower than agricultural growth. Only then farmers, food-processing industry and consumers shall fell satisfied.

2007 – June [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Liberalisation in India, which began more than a decade ago, has been proceeding at a frantic pace. The implications for corporations in India are significant. This is true of all vertical industry segments across the board such as banking, financial services, airlines, transportation, telecom and manufacturing. One of the most far-reaching implications in this liberalised and hence globalised regimes is the increasing widespread use of state-of- the-art information technology solutions. This is done to gain strategic and competitive advantage vis-a-vis the past. It is worthwhile to examine in some detail the position of enterprises manufacturing systems for the manufacturing industry.

Up until recently, manufacturers in India have been a relatively sheltered lot, v;hat with the “licence raj” regime in the home market on the one hand and lack of global as well as multinational competition on the other. In the

current context, however, this protection is being withdrawn in intermittent doses by the Union Government. Alarming though this may sound, this is both a problem and an opportunity for Indian manufacturers with an eye towards growth via the international market place. The problem is that suddenly they have to compete against the best in the world, albeit in the local market. The opportunity is that it they successfully do so, nothing can really stop them from repeating this success across the globe. It is apart that to achieve world class status, use of latest information technology will be a pre-requisite. After all, having world class manufacturing processes, world class design processes and large local and export market at the same time is of no avail if the organisation cannot produce the right product at the right time and at the right cost. This would also enable them to market their products world wide using the latest information technology solutions. Liberalisation then will cease to be a dreaded word. (10 marks)

Answer:

Title: Liberalisation and Indian Industry Precis:

Liberalisation has affected most sectors of Indian industry by now. Therefore a wider acceptance of information technology is necessary, only then they will be able to compete both at local and international levels. The manufacturing industry in particular needs to adjust as the government gradually opens up the closed market. It can turn the apparent crisis to a chance to grow worldwide. Use of the latest communication techniques is a precondition. Indian enterprises will also have to enforce exacting manufacturing as well as costing standards comparable to those prevailing abroad. It they succeed, they can benefit from liberalization at home and abroad.

2007 – Dec [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

The increasingly cheaper imported chocolates, confectioneries and nibbles may have heartened consumers. However, there is reason for concern. Buyers may never know if these value-for-money products landed in the country through the official customs channel or in a passenger’s personal baggage. In other words, there is no way to find out whether the products have passed the mandatory safety tests for adulteration.

Says A K Prasad, Commissioner Customs (Imports), Mumbai,’“Normally, products that come through passenger baggage don’t go through these checks. Suppose someone carries a boxful of items from Singapore. Those things, you cannot check.”

It is not as if smuggled items are a new phenomenon. Besides, since the gradual easing of import norms (edible items do not require an import licence), a wider variety of products have started entering the country. Concurrently, though, small shops stocking supposedly imported and cheaper products have also mushroomed all over the place. Such shops sell a chunk of their products at surprisingly cheap rates – obviously evading the high 30- 50% duty imposed on items such as cooked chocolates, malted milk products and ginger bread, in addition to the 16% countervailing duty. In the process, such products bypass safety tests too. It is also “difficult to make out duplicates,” says Prasad.

Although this is not a sure proof of authenticity, consumers can look for the manufacturer and importer’s names on the lable; this is a compulsory requirement.

h products are imported through the proper channel, their samples are sent for testing to Cental and State laboratories identified by the Prevention of Food Adulteration (PFA)department under the Minisitry of Health and Family Welfare. Says a source in the PFA, “Once a product enters the market, it is treated on the same plank as.a local product. All products come under the purview of the PFA Act and Rules.”

However, once a product gets the go-ahead and if the supplier, brand and importer remain the same, no tests are conducted on future imports. But,

S.P. Adeshara, Commissioner at Gujarat’s Food and Drug Control Administration says, “Sometimes they are subjected to random test.” That’s because, time and again, State governments have been instructed to do so, says the PFA source.

In addition, any consumer who suspects the quality of a product can also get it tested. Says Adeshara, “There is a provision in the PFA Act, which empowers private purchasers and customers to test such products in government approved laboratories.”

“In Mumbai, for instance”, says P R Uttarwar, Joint Commissioner at Maharashtra Food & Drugs Administration, “suspect products can be tested at the BMC laboratory in Dadar and the State government lab in Vashi. If an

item is found to be adulterated, the consumer must give details of the results to BMC. The corporation’s food inspectors will visit the site. Action can be taken against the retailer and the supplier under the PFA Act.” (10 marks)

Answer:

‘Title: Imports and Consumer Protection

No-one can be sure of the safety standards with regard to import of products like candies through unofficial channels. Smuggling is not new to India and such products often find their way through unaccompanied baggage of passengers. Post-liberalization, the import of most edible products has become easier. As a result, imported confectionary is available on the shelves of even small shops all over the country. To be sure of genuineness of the product, customers still have the option of searching for the manufacturer’s name on the label, which is a mandatory requirement. Products imported through proper channels are safer to consume since they cannot enter the market without laboratory testing. After entering the market too, these products come under the Prevention of Food Adulteration Act and Regulations. Once a manufacturer’s branded product gets a green signal, future tests are not mandatory though random checks may be made under PFA. n 2008 – June [7] Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Responding to reports that the Indian government was planning to lodge a complaint, the United States clarified that no patent had been issued in the country on yoga positions. “The US Government had conducted a search of all patents issued and no US patents on yoga positions have been identified”, a statement issued by the US embassy said.

Embassy spokesperson David Kennedy added that no pending patents on yoga positions have been identified, either, although “Copyrights on written material” have been granted only on “new and non-obvious devices that may be used in conjunction with yoga.”

Officials in the Health Ministry’s Department of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy (AYUSH), which was at the forefront of the move to lodge a complaint, said they were happy that US Government had gone through this verification and clarified matters.

However, they added, they would continue to examine some patents, copyrights and trademarks that they are suspicious about and would raise the issue with the US Government, if required.

The ancient Indian spiritual system of yoga has become a fitness fad in the US, espoused by many celebrities. It is a $ 3 billion a year industry, prompting many like the Indian-born fitness guru Bikram Chaudhry to apply for patents on yoga postures and yoga related contraptions.

According to recent media reports, the US has issued 150 yoga related copyrights, 134 patents on yoga accessories and 2,315 yoga related trade marks. However, it was the patenting of yoga postures that Indian Yoga practitioners and intellectual property rights experts found outrageous.

As a result, the Department of AYUSH wrote to the Commerce Ministry, and it was agreed last week that the lndian embassy would take up the issue with the US trade representative and Patents Office. “Yoga is our ancient heritage”, says Shiv Basant, Joint Secretary, Department of AYUSH, “but many countries have issued patents on it. We have strong objections to this, and will raise the matter with the government concerned.”

The dispute has once again exposed the differing attitudes towards yoga-and more generally towards intellectual property rights on traditional knowledge-between India and the US. In the past, disputes had arisen over patenting of products that have been used as traditional remedies in India for millennia. In 2005, the EU had revoked a patent of a US Company on a fungicide derived from neem. Prior to that the US Patent Office had revoked a patent on turmeric after a.challenge was filed by New Delhi based Council for Agriculture Research. (10 marks)

Answer:

Title: Yoga Postures and Patents

The US Government after conducting a search of all patents issued clarified that no US patent on yoga postures has been issued by it. However, some patents have been granted on new and non-obvious devices that may be issued in conjunction with yoga. Indian officials expressed their happiness at the us Government’s clarification on not granting patents on any yoga postures but they stated that they would continue to look into some patents, copyrights and trademarks that are suspect. This is due to the emergence

of yoga into the biggest health, fitness and spiritual exercise system commanding a $ 3 million a year industry. As yoga has become popular in many countries, patents appear to have been issued by these countries on yoga postures and this has become a cause of worry amongst Indian proponents and practitioners of yoga.

2008 – Dec [1] (b) Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Liberalisation in India, which began almost a decade ago, has been proceeding at a frantic pace. The implications for corporations in India are significant. This is true of all vertical industry segments across the board such as banking, financial services, airlines, transportation, telecom and manufacturing. One of the most far-reaching implications in this liberalised and hence globalised regimes, is the increasing widespread use of state-of- the-art information technology solutions. This is done to gain strategic and competitive advantage vis-a-vis the past. It is worthwhile to examine in some detail the position of enterprises manufacturing systems for the manufacturing industry.

Up until recently, manufacturers in India have been a relatively sheltered lot, what with the ‘licence raj’ regime in the home market on the one hand and lack of global as well as multinational competition on the other. In the current context, however this protection is being withdrawn in intermittent doses by the Union Government. Alarming though his may sound, this is both” a problem and an opportunity for Indian manufacturers with an eye towards growth via the international marketplace. The problem is that suddenly they have to compete against the best in the world, albeit in the local market. The opportunity is that if they successfully do so, nothing can really stop them from repeating this success across the globe. It is apart that, to achieve world-class status, use of latest information technology will be a pre-requisite. After all, having world-class manufacturing processes, world- class design processes and large local and export market at the same time is of no avail if the organisation cannot produce the right product at the right time and at the right cost. This would also enable them to market their products world-wide using the latest information technology solutions. Liberalisation then will cease to be a dreaded word. „ (10 marks)

Answer:

Title: Liberalization and Information Technology

Or

The Impact of Liberalization in India

The onset of liberalization has impacted almost all sectors of the Indian economy. The common factor in this development has been the use of information technology to gain a competitive advantage. So far the industry had enjoyed a sheltered existence. But manufacturing industry in India is now adopting information technology to face competition better. Liberalization poses problems but also opens new opportunities. In case, Indian industry manages to compete with world’s best organizations, it would get a foothold in the entire world market. Adoption of IT and other technological solutions would be a pre-requisite for achieving a share of the global markets.

2009 – June [1] (b) Make a precis of the following passage in about one- third of its length and suggest a suitable title

The long and wmding queues at your bank’s ATM will soon be a thing of the past. Come April 1, and you would be able to visit a rival bank’s ATM without paying anything for it. Thank the Reserve Bank of India, which has made it mandatory for banks to not levy any charge on ATM use.

While customers wait this welcome relaxation, banks are cautious. “This is purely customer-oriented decision. Banks were not happy with it. We had asked RBI not to implement it.” That’s because the banks feel it could slow down the process of ATM expansion in the country. Currently, banks pay each other a transaction fee in case a customer uses another bank’s ATM. With ATM transactions becoming free, bank’s costs on this could go up by 10-15 per cent.

The IBA feels some banks will now find it cheaper to piggyback on other banks’ ATM networks. Though the cost of setting up an ATM has fallen from around Rs.15 lakh a decade ago to about Rs.6 lakh, still it remains an expensive proposition. Add recurring costs for manpower, cash management, maintenance and security.

“Banks would find it cheaper to pay an inter-charge to another bank for usage of its ATM.” This would make sense for smaller banks that could then concentrate on branch expansion than invest in ATMs.

Several banks have applied the brakes on their ATM expans;ion. While earlier estimates were that an additional 1,00,000 ATMs would be set up by 2012, the new number is around 50,000. Currently, India has about 35,000 ATMs, fuelled by an explosive growth in debit and credit cards.

Globally, the ATM space is dominated by third party and ‘White Label’ ATMs those not owned by any particular bank but set up by independent companies and sponsored by banks to share costs. Although the RBI currently does not permit non-banks to set up ATMs in India, the central bank is actively considering it and might allow it soon. It has asked banks and ATM managing companies to provide data about how such networks should work.

With no service charge and restriction on number of transactions there is going to be surge in ATM activity from April, but also leading to delay in processing ATM requests. (10 marks)

Answer:

Title: Free ATM Usage

Or

ATM Services: Customers’ and Banks’ viewpoints

Effective April 1, due to RBI directive, customers will be free to use any other bank’s ATM without any fee and rush control. The ATM transactions would surge. RBI has instructed banks not to charge any fee. While consumers have welcomed it, the Banks have opposed it and stopped expanding – particularly those who have already invested a lot on ATM expansion. These banks regularly spend huge amount on recurring costs. Banks, who did not invest or invested little in ATMS, will be beneficiaries. This has dampened the spirits of banks with large ATM network. RBI in India does not allow independent companies to own ATMs, a globally accepted practice. However, RBI needs facts and figures before allowing independent companies to enter into ATM space.

2009 – Dec [1] (b) Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Development banks in india-at both national and State levels-have been operating under a considerable financial strain particularly in recent years, in view of their burgeoning financial needs, also the new responsibilities entrusted to them. In their bid to surmount this problem they have been making frantic efforts to mobilise more resources from external sources, giving no adequate attention to the planning of resources as related to their needs.

As a matter of fact, resource planning must precede the mobilisation of resources. In resource planning, the management has to take decisions on the quantum of funds and the pattern of fund requirements.The former is reflected in capitalisation and the latter in the capital structure. The success of a development bank hinges in a great measure on how carefully and prudently resource planning has been done. By making precise estimates of current and future fund requirements and choosing an appropriate capital structure, the management can utilise the resources to the optimal level and avoid wastage and thus reduce the cost of operation and improve its profitability. Considerable care must be exercised while making the estimates. Faulty resource planning may entail the problem of inadequacy or redundancy of capital. Both these situations should be avoided, for they adversely affect the operational efficiency of the financial institutions. Likewise, a prudent plan is a guide in deciding about the optimal capital i ructure of the institution.

While determining the proportionate share of different forms of financing in the total capitalisation, the management has to ensure that it pays the minimum cost and incurs the least risk. A slight carelessness on the part of the management in this respect is likely to impair the financial health of the institution for a long time to come. (10 marks)

Answer:

Recently, Development Banks in India, have been operating under considerable financial strain due to increasing responsibilities and financial needs. Banks, both at national and state levels have been making frantic and un-planned efforts to mobilize resources.

Resource mobilization is only possible after Resource Planning. Planning is a fruitful exercise of fund allocation and requirement. Capitalization relates to quantum of funds required where as capital structure relates to pattern of fund requirements. Proper planning results into safe capitalization and optimal utilization of the capital mobilized.

Good estimated forecasts may result into avoidance of both inadequacy and superfluity of capital requirements.

Title: “Proper Resource Planning” — The Need of Development Bank in India.

2010 – June [1] (b) Make a precis of the following passage in about one- third of its length and suggest a suitable title.

Accounting is defined as ‘the language of business’ as it is the medium to record business’ activities resulting into profit or loss and financial position. The financial statements prepared are a medium of communication with the stakeholders. Accounting processes document all aspects of financial performance of the business, from costs (capital or revenue) to revenue and owners’ equity.

An understanding of the financial data contained in accounting documents is regarded as essential to reaching an accurate picture of a business’s true financial well-being. Armed with such knowledge, businesses can make appropriate financial and strategic decisions about their future; conversely, incomplete or inaccurate accounting data can cripple a company, no matter its size or orientation. The importance of accounting as a barometer of business health—past, present, and future—and tool of business navigation is known to one and all. An accounting system contains information relevant to a wide range of people* its stakeholders. Commerce education at the undergraduate level is highly general. The emphasis is more on theory and very little practical knowledge, whereas whatever accountants do is all practical. The accountants who are working with small enterprises are deficient in understanding and interpretation of legal requirements of accounting and business. They feel stranger to newer forms and returns, and increasing e-filing. Even the present day accountants being employed by large organisations find difficulties in understanding the ever increasing legal provisions and compliances. Worldwide accounting is done through computers, the IT education has not reached to a large mass of employable

youth in India. Due to lack of knowledge and skills, the Chartered Accountants have to devote more time on making them understand as to what is to be done and how it is to be done. The businesses have to pay higher fees to Chartered Accountants as their services are time-rated. India has a large pool of 10 + 2 pass outs in search of gainful employment, but without necessary vocational education, thus not employable. The role of banks has increased considerably in conducting business. Traditional accountants often feel uncomfortable with banking transactions. Due to globalisation, the organisations are having greater exposure to international transactions, but accountants have difficulty to deal with them.

(10 marks)

Answer.:

Accounting, records all the financial affairs of business. It acts as a business language communication and a medium exchange with the real owners of an enter prise.

The stake holders:

It is mandatory for any person dealing with financial results to be fully aware of all the intricacies of accounting. Any individual with full knowledge of accounting concepts will be in better position to take key business decisions and improve its financial health.

With only generalized awareness of commerce education at the under graduate level, the students feel much discomfort in dealing with the hard core legal formalities of accounting and business. The feel less compatible with the latest reforms of e-filing and newer forms and Trends adopted in the accounting system of new business.

With the increasing demand of IT Profession 10+2 students should be forced and motivated to learn new globalized, technical-computer accounting skills and contribute towards better business forms. This will also reduce the much dependency of business entities in Chartered Accountants and will increase employment opportunities to such large sized under graduates. Title:

Need for New-Accounting education for Indian. Under- Graduates.

2010 – Dec [1] (b) Make a precis of the following passage in about one-third of its length and suggest a suitable title. Even before the end-users are gearing up to take advantage of the economic recovery to buy houses, high

net-worth individuals (HNIs) are flocking to the market. They are deftly booking houses ahead of any further increase in prices of residential units. Currently, financial investors constitute around 30% of the sale in residential units, even though it has not reached the peak level of 2007. As per industry estimates, almost 70% of the newly-launched projects in 2007 were bought by investors and remaining 30% by the end-users. Typically, investors, comprising HNIs, flock the housing market keeping a 6-12 month return in mind, whereas an end-user’s demand is a function of job security and affordability.

With demand picking up in the residential space, investors are entering the market rather aggressively. Sale of premium houses is not solely dependent on prices, but location. Savvy financial investors are increasingly cashing in on this segment. Given the robust economic growth and the fact that prices are still below the peak level of 2007-08, financial investors are confident that genuine demand for residential projects is going to stay or even increase further in near term.

Real estate was one of the worst-affected sectors in the financial meltdown. Fearing job losses, buyers turned away from the market and banks became wary of lending. The situation is now changing as buyers’ sentiments have turned positive in the backdrop of renewed activity on the employment front and increasing income scenario, coupled with benign interest rates of home loan.

During the slowdown, prices of residential units had fallen to 35%, which have started to move northwards. However, in extended suburbs and Tier II- III cities, prices are expected to remain under control as supply of residential units in these locations still outstrip demand.

Though investor sentiments have started showing up in certain projects, primarily in the premium housing category, sale in the mass market is still being driven by end-users, the analysts said. The fact that there has been a significant increase in housing loans in the recent months shows that it is mostly the end-users who are buying houses now. This is very good for both realty firms and consumers as there will be less volatility in the prices.

(10 marks)

Answer:

Currently, the trend in the Real Estate business is being governed by high- net worth individuals (HNIS). HNIS constitute about 70% of the purchases in the new projects of 2007. HNIS are aggressively investing in projects, keep a year return in mind, where as the end-users which constitute about 30% depend on job-security and affordability. The investors are focusing not on the price, but the location and premium category housing, as they feel the demand is going to stay. The prices of residential units in class ll-lll cities are expected to remain under control as supply outstrips demand. The increasing Home-loans also indicate that the end-users are driving the market and this also provides stability to the realty firms.

The Realty Pilot-Investor or End-User?

2011 – June [1] (b) Make a precis of the following passage in about one- third of its length and suggest a suitable title.

The problem of begging in India is a large one, and is a symptom of a number of complex social evils. The most common cause of begging in our country is the lack of work opportunity in villages so that people are driven to crowd into large towns to look for work. They seek employment as road workers, porters, casual helpers in markets and as domestic servants. Those who fail to make a living in these ways tend to resort to begging to make an income. There are some other reasons for resorting to begging such as – family breakdown leading to truancy by the children, the death or desertion of husband, the use of disfigured children to gain an income for their guardians and the result of disabling diseases which prevent a person from making a useful living. All these causes produce a problem which is magnified in two ways. Firstly, by the general toleration of persistent and open begging in public places and, secondly, by the very bad psychological effects of their way of life on the beggars themselves. Thus, they live in a state of despair and gradually lose the normal human values of self-respect and dignity, so that eventually begging becomes for them an acceptable way of life.

Somehow, a society must be able to make the best use of all its resources, both material and human. All persons who are able to do work must be given a chance to have a suitable occupation and those who are

handicapped must be helped to become an asset to society. Guardians, who motivate their children for begging, should be punished. In nutshell, it can be stated that only by curing many social and economic ills, the evil of begging, a symptom of these ills, can be overcome. (10 marks)

Answer:

The problem of begging is fast becoming a complex social evil. People from villages such to big cities in search of employment failure to get one, force then to earn then livelihood by begging. Easy earning by the use of disabled organ, ora disfigured child have made this evil cause – a profession, people lose their human-values and dignity and accept begging as their way of life.

Society should now come forward to help the handicapped and the poor in providing a good chance of occupation and helping them fulfill their daily needs and desire to earn with pride and respect.

TITLE: BEGGING AND UNEMPLOYMENT 2011 – Dec [1 ] (b) Make a precis of the following passage in about one-third of its length and suggest a suitable title.

The business cycle or trade cycle is a permanent feature of market economies. Gross Domestic Product (GDP) fluctuates as booms and recessions succeed each other. During a boom, an economy expands to the point where it is working to its full capacity so that production, employment, prices, profits and investment rates all tend to rise. During a recession, the demand for goods and services decline and economy begins to work below its potential. Output, profits, commodities and share prices generally fall. A long-lasting recession is called a slump or depression.

The highest point in a business cycle is called a peak which is followed by a downturn, downswing or a period of attrition. The lowest point is called a trough which is followed by a recovery, upturn or upswing.

There are internal and external theories to explain the business cycle. Internal theories consider it to be self-generating, regular and infinitely repeating. When economic times are good, people spend more, run up debts, take loans. When interest rates are high, people start consuming less, save more and do not borrow. This results in the demand becoming less, production slowing down and the downturn beginning.

External theories suggest that scientific advancements, natural disasters, economic and political changes trigger an upswing or downswing. These theories look for explanation outside of economic activity. Over regular periods of time, the business cycle changes in keeping with ambient circumstances. Sooner or later at every point of economic growth, when demand is high, prices can be easily put up and profits are increasing – employees will begin to demand higher wages and salaries. As a result, employers will either reduce investment or start to downsize employees and a downturn will begin.

As far back as the nineteenth century, people believed that business cycle resulted from people infecting one another with optimistic or pessimistic expectations. When the times are good they invest and spend, when times are bad they save. Another practical theory of business cycle suggests that it is caused by business oriented governments beginning their periods of office with a couple of years of austerity programmes followed by tax cuts and monetary expansion in two years before the next election.

(10 marks)

Answer:

Suggested Title: The Business Cycle

The business cycle or a trade cycle consists of a period of boom followed by a period of recession. The boom period sees the economy growing with the highest point called the ‘peak’ reached at a point. The peak is followed by a downward swing which has a lowest point called ‘trough’.

There are two main types of theories to explain the business cycle-the internal and external theories. Internal theories propagate that the business cycle is a sell generating continuous cycle. A period of boom is naturally followed by a downtrend. External theories propagate the fact that business cycles are dependent on natural disasters, inventions and political changes. These factors cause the economay to grow or slow down. Some theorists suggest deliberate government measures foretell a boom or recession.

2012 – June [1 ] (b) Make a precis of the following passage in about one-third of its length and suggest a suitable title.

Speaking in public is most people’s least favourite thing. The reason is that we are all afraid of making fools of ourselves. The more important the speech, the more frightened we become. *

Your audience is going to come away with one or two of your main ideas. One or two, not ten or twenty. If you can’t express in a sentence or two what you intend to get across, then your speech is not focused well enough. And if you do not have a clear idea of what you want to say, there is no way your audience will.

No matter how long or short your speech is, you have got to organise it – how you are going to open, what major points you want to make and how you are going to close.

When I do a radio or TV piece, I often write the last sentence first. When you know where you are headed, you can-choose any route to get there. A strong conclusion is critical: the last thing you say is what your audience will most likely remember.

The first few moments of your speech establish the relationship between you and your audience’. Smile. Acknowledge you introducer with a nod and a thank you. Then wait. Don’t begin until you have everybody’s attention. Each member of the audience will quickly et the idea that he is being spoken to and will turn on his brain. You should use-notes instead of scripted speech. (10 marks)

Answer:

‘Suggested Titles:

(i) Effective public speaking Or (ii) Useful hints for goods public speech

People generally hesitate to make public speeches for fear of making fool of themselves. The author offers a few useful hints in this art from personal experience. The speech should be built around two or three distinct ideas. It should have a precise, definitive beginning and a powerful and memorable ending. The speaker should not rush through the speech. He should wait till he has caught everybody’s attention. Short notes should be used instead of scripted speech.

2012 – Dec [1 ] (b) Make a precise of the following passage in about one-third of its length and suggest a suitable title.

Now-a days India is making tremendous progress in every field. Educational, social and economic levels of people are going up. The power of the great Indian middle class is attracting multinational corporations and the consumer goods are being offered to them on easy terms. Indian

business -houses are also collaborating with the foreign companies or offering their units for mergers and acquisitions. In many ways, it is good thing happening to India, as people can expect good quality imported consumer goods. But, does it augur well for the nation?

Since independence, there has been the utter neglect of R & D or Research and Development in our country. We have largely produced second rate goods, despite the availability of best trained technical and managerial talent, in order to make a fast buck. Our best brains often get frustrated in the process and emigrate abroad in search of better research facilities and incentives. Our emphasis is never on improving quality. We resort to the easier options: importing technology or even finished goods. But nations only sell technology, whiGh is about to become obsolete and cannot reduce their market share of global trade.

In order to stay competitive and cut down imports, we need to develop indigenous technologies. Efforts should be made to match, even excel, international standards to boost exports of non-traditional items. For that every industrial house must contribute a part of its profits to Research and Development since it is the soul of every flourishing enterprise.

(10 marks)

Answer:

Title

Development of Indigenous Technology

OR ‘

R & D Essential for Development

India has achieved all round progress, increasing the purchasing power of the common people. The demand for consumer products has also gone up. This has lead to multinational mergers and acquisition of foreign technology. But nothing beats development of indigenous technology. What is imported is expensive and often going to be obsolete. Technology should only be imported to increase exports of new items and to raise our products to international standards. Indian companies must allocate funds for R & D the core of every business.

2018 – May [8] (c) Write a precis and give appropriate title to the passage given below:

Teaching is the noblest of professions. A teacher has a scared duty to perform. It is he on whom rests the responsibility of mouldipg the character of young children. Apart from developing their intellect, he can inculcate in them qualities of good citizenship, remaining neat and clean, talking decently and sitting properly. These virtues are not easy to be imbibed. Only he who himself leads a life of simplicity, purity and rigid discipline can successfully cultivate these habits in his pupils.

Besides, a teacher always remain young. He may grow old in age, but not in spite. Perpetual contact with budding youths keeps him happy and cheerful. These are moments when domestic worries weigh heavily on his mind, but the delightful company of innocent children makes him overcome his transient moods of despair.                                                                                                                                    (5 marks)

Answer:

(PRECIS)

NOBLEST PROFESSION – TEACHING

Teaching is the noblest of profession. A teacher has a scared duty to perform. It is he on whom rests the response of moulding the character of young children.

Only he who himself leads a life of simplicity, purity and rigid discipline can successfully cultivate these habits in his pupils. These are moments when domestic worries weigh heavily on his mind, but the delightful company of innocent children makes him overcome his transient moods of despair.

2018 – Nov [8] (c) Write a precis and give appropriate title to the passage given below:

Trees give shade for the benefit of others, and while they themselves stand in the sun and endure the scorching heat, they produce the fruit of which others profit. The character of good men is like that of trees. What is the use of this perishable body if no use is made of it for the benefit of mankind? Sandalwood, the more it is rubbed, the more scent dies it yield. Sugarcane, the more it is peeled and cut up into pieces, the more juice dies it produce. The men who are noble at heart do not lose their qualities even in losing their lives. What matters whether men praise them or not ? What difference does

ir make whether they die at this moment or whether lives are prolonged? Happen what may, those who tread in the right path will not set foot in any other. Life itself is unprofitable to a man who does not live for others. To live for the mere sake of living one’s life is to live the life of dogs and crows. Those who lay ‘down their lives for the sake of others will assuredly dwell forever in a world of bliss.

(5 marks)

Answer:

Tittle: Generosity – Purpose of Human Life:

Living for the good of others is a sign of humanity. The way the trees give themselves pain and give fruits to others, sandalwood rubbed himself to scent others. In the same way, good people always work for the benefit of others except of self-feed like dogs and crows. Noble people always looking for possibilities to help others.

2019 – June [8] (c) Write a precis and give appropriate title to the passage given below:

‘India has witnessed great expansion of educational opportunities since the attainment of independence. However, the disabled children have not yet benefited in any substantial manner from the growth in educational facilities. Education of handicapped children, ultimately become more dependent and non productive. It is therefore believed that scarce national resources should not be wasted on them. Further, it has been our misconceived notion that the education of handicapped children requires highly specialized people and as such, it must essentially be very costly. Maybe, precisely for these wrong notions we have not been able to involve clinical and educational specialization programmers of training and education exclusively meant for handicapped children. It is encouraging to note that the new National Policy on Education has recommended the placement of such children in regular schools so as to provide them integrated education along with normal students. The integrated education will take care of the different needs of various categories and types of disabled children. The objective is to place the disabled children in ordinary schools for imparting education with the help of special teachers, aids and other resources. For fulfilling this objective an array of the necessary infrastructure by way of training of teachers, provision

of equipment and book etc. are some of the basic pre-requisition. Hopefully, the parents and their handicapped children will be greatly relieved when the latter are transferred to regular schools. (5 marks)

Answer:

Title – Inclusive Education for Children with Disabilities

Despite expansion of educational opportunities in India, the disabled children have not yet benefitted significantly. Due to the belief that handicapped children are dependent and non productive and their education requires highly specialized teachers, educational programmes for handicapped children have never been implemented. The new National Policy an Education recommends that such children be placed in regular schools where their needs are catered to. However, to fulfil this objective, there are prerequisites such as training of teachers, provision of equipment and book etc. Hopefully, this recommendation will bring relief to handicapped children.

*This article contains all topics about Precis Writing- BUSINESS CORRESPONDENCE AND REPORTING

For notes on all CA foundation topics, you can visit this article CA foundation note

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