COMMERCE & ACCOUNTANCY

PAPER-I
ACCOUNTING & FINANCE
Part- I Accounting , Taxation & Auditing
Financial Accounting- Accounting as a financial information system; Impact of behavioural sciences.
Accounting Standards e.g , accounting for depreciation, inventories, gratuity, research and development costs , long term construction contracts , revenue recognition , fixed assets, contingencies, foreign exchange transactions, investments and governmdnt frants.
Advanced problems of company accounts. Amalgamation absorption and reconstruction of companies.
Valuation of shares and goodwill.
Cost Accounting- Nature and functions of cost accounting.
Job Costing
Process Costing
Marginal Costing; Techniques of segregating semi-variable costs into fixed and variable costs.
Cost volume-profit relationship ; aid to decision making including pricing decision , shutdown etc. Techniques of cost control and cost reduction.
Budgetary control, flexible budgets.
Standard costing and variance analysis.
Responsibility accounting , investment , profit and Cost cenres.
Taxation
Definitions
Basis of charge.
Incomes which do not form part of total income.
Simple problem of computation of income under various heads, i.e. , salaries ,income from house property, profit and gains from business or profession , capital gains, income of other persons included in assessee’s total income.
Aggregation of income and set off/carry forward of loss.
Deductions to be made in computing total inbnme.
Auditing
Audit of cash transactions, expenses,incomes,purchases,sales
Valuation and verification of assets with special reference to fixed assets, stock and debts.
Verification of liabilities.
Audit of limited companies; appointment, removal, powers, duties and liabilities of company auditor, significance of ‘true and fare’ MAOCARO report.
Auditor’s report and qualifications therein . Special points in the audit of different organizations like club , hospital , colleges, charitable societies.
PART- II : BUSINESS FINANCE AND FINANCIAL INSTITUTIONS
Finance Function- Nature, scope and Objectives of Financial Management – Risk and Return relationship.
Financial Analysis as a Diagnostic Tool.
Management of Working Capital and its Components- Forecasting working capital needs, inventory , debtors, cash and credit management.
Investment Decisions- Nature and Scope of Capital Budgeting- Various types of decisions Make or Buy and Lease of Buy-Techniques of Appraisal and their application.
Consideration of Risk and Uncertainty- Analysis of Non,financial Aspects.
Rate of Return on Investment- Required Rate of Return-its measurement- Cost of Capital Weighted Average Cost- Different Weights.
Concepts of Valuation – Valuation of firm’s Fixed Income Securities and Common Stocks.
Dividend and Retention Policy- Residual.
Theory or Dividend Policy- Other Models- Actual Practices.
Capital Structure- Leverages- Significance of Leverages- Theories of Capital Structure with special reference to Modigliani and Miller approach. Planning the Capital Structure of a Company; EBIT- EPS Analysis , Cash-flow ability to service debt , Capital Structure Ratios, other methods.
Raising finance-short term and long term. Bank finance-norms and conditions.
Financial Distress- Approaching BIFR under Sick Industrial Under- takings Act : Concept of Sickness, Potential Sickness, Cash Loss , Erosion of Networth.
Money Markets- the purpose of Money Markets, Money Market in India – Organization and working of Capital markets in India- Organizathon, Structure and Role of Financial Institutions in Indha. Banks and Investing Institutions- National and International Financial Institutions-their norms and type of financial assistance provided – inter-bank lending –its regulation, supervision and control . System of Consortium- Supervision and regulation of banks.
Monetary and Credit policy of Reserve Bank of India.
PAPER- II
ORGANISATION THEORY AND INDUSTRIAL RELATIONS
PART-I : ORGANISATION THEORY
Nature and concept of Organization – organization goals; Primary and secondary goals, Single and multiple goals, ends means chain- Displacement , succession , expansion and multiplication of goals –Formal organization; Type , Structure- Line and Staff, functional matrix, and project- Informal organization – functions and limitations.
Evolution of organization theory- Classical ,Neo- classical and system approach – Bureaucracy; Nature and basic of power ,sources of power , power structure and politics- Organization behaviour as a dynamic system : technical , social and power systems- interrelations and interactions- Perception- Status system. Theoretical and empirical foundation of theories and Models of motivation . Morale and productivity- Leadership : Theories and styles – Managements of conflicts in organization – Transactional Analysis – Significance of culture of organization . Limits of rationality- Organizational change , adaptation, growth and development, Professional management Vs. family management , Organizational control and effectiveness.
PART- II INDUSTRIAL RELATIONS
Nature and scope of industrial relations ,the socio- economic set-up , need for positive approach.
Industrial labour in India and its commitment –stages of commitments . Migratory nature –merits and shortcomings.
Theories of Unionism.
Trade Union movement in India- origin, growth and structure ; Attitude and approach of management of India- recognition . Problems before Indian Trade Union movement . Industrial disputes- sources; strikes and lockouts .
Compulsory adjudication and collecthve barf`inhng- `pprnachds.
Worker’s participation in management – philosophy , rationale; present day state of affairs and future prospects.
Prevention and settlement of industrial disputes in India.
Industrial relations in public Enterprises.
Absenteeism and labour turnover in India Industries- causes.
Relative wages and wage differentials ; wage policy.
Wage policy in India; the Bonus issue.
I.L.O. and India;
Role of Personnel Department in the Organisation.

Tips For Civil Services Main Exam, General Studies

The first papers will be that of General Studies which is a compulsory subject for all candidates.
General Studies in Main Examination comprises two papers of three hundred marls each. The duration of each paper is three hourse.
Paper-I has four segments, namely :
History of Modern India and Indian Culture
Geography of India
Constitution of India and Indian Polity
Current National Issues and Topics of Social Relevance
Paper-II has five segments , which are as follows :
India and the World
India’s Economic Interaction with the World
Development in the field of Science and Technology, IT and Space
International Affairs and Institutions
Statistical Analysis , Graphs and Diagrams
The syllabus as provided by UPSC, does not have much explanation regarding the details for the segments . It is therefore, advised to refer to previous years’ questions to get an idea about the explanation . The following observations have been made on the bases of analysis of previous years’ question papers:
The temporal reference to the History of Modern India and Indian Culture is up to the middle of 19th century. Thematic reference includes major events of the time, personalities,Facts and events associated with it. A majority of question pertain to the issues associated with the freedom struggle. Along with this there are question which deal with the cultural diversity of the country. However , the marks contained in culture segment are relatively less. This segment of History of Modern India and Indian Culture accounts for almost 30% of the total score of 300 marks.
Geography of India (physical , economic and social ) is a wide ranging segment of the syllabus. However , in terms of marks the total share is not so impressive . This segment accounts for approximately 10% of the total marks of Paper- I To prepare for this segment the candidates are advised to collect information about latest geographical events concerning India.
Constitution of India and Indian Policy is the most vital segment of Paper-I since its share of marks is almost one third. Students are advised to take note of it and accordingly give more time for its preparation . Here mainly the question are asked from the Indian political system and the Constitution of India. Students are required to collect information about various Government institutions and their functions, and also the relationship between them.
Current National Issues and Topics of Social Relevance include such events that are expected of an educated person to be aware about . They primarily include contemporary social problems that the Indian society is facing Some of the major issues include Human Rights, Human Resources, Corruption, Health, Environment and Preservation of Ecology, Pollution etc. The weightage of this segment in terms of marks is approximately one fourth.
The first segment of Paper-II is ‘India and the World’. In this segment candidate’s awareness is tested with regard to the country and the rest of the world. Here questions on issues such as foreign affairs, external security , nuclear debate, etc. are asked Further, another import area is with regard to Non- Resident Indians and the issues related to them . International position of India vis –a-vis various issues should also be kept in orientation while preparing for this segment . The share of this segment in Paper- II is about 15%.
Economic consciousness is on the rise. There have been more changes in the Indian Economy in last ten years than the change that occurred in the first four decades after independence . Questions on Indian Economy (about 30% of Paper II, as regards marks) have reference not only to the Indian planning commitment and issues , programmes and priorities of economic development, but also about the international economic and financial institutions . Students should gather information on WTO, IMF and other international institutions , particularly with regard to their relationship with India, Here, keeping abreast of the changing economic scenario is also very helpful.
Development in the field of Science and Technology, IT and Space is also a major component of Paper-II . In terms of participation of marks , about 25% of question are asked from this segment. While preparing the same those issues that have a bearing on the socio-economic development of the country , must be given more importance.
International Affairs and Institutions accounts for about 15% of the marks in Paper-II . It contains questions on major global changes that are taking place . It also includes questions on such relationship that develop between different countries which have their impact not only on India but on the world as a whole.
The last segment of Statistical Analysis, Graph and Diagrams’ with the participations of about 15% marks. Is significant . It is the only part of General Studies where students have a chance to score close to hundred percent . Here speed is vital, which can be achieved by practicing previous years’ questions.
The approach to the above mentioned segments of General Studies may very from student to student, depending upon his/ her comfort level in each area. Since General Studies can be more scoring than your optional subjects you cannot afford to ignore any of these.
In the examination hall read all the questions quickly in the first go and select those where you feel more confident and comfortable . Start with those questions where you can give your best. Apart from making a good impression on the examiner , this will give you an extra boost of confidence.
Read each and every question very carefully before attempting it. See what the examiner wants in your answer. He will be more interested in your approach to a given problem than your knowledge as such . Hit the question directly and stick to the basics. Try to present your answer in a simple and lucid manner. You may use pointers, diagrams, and illustrations to make your answer ‘examiner-friendly’ Your paper must stand out from those of the others in order to get good marks . Believe it or not, many have done this in the past . Maintain a reasonable speed without making avoidable errors.
Do not cross the word limit prescribed for each question. You may be penalized for writing more than what has been asked for. Economical use of words comes with a lot of writing practice before the examination. Also, avoid common mistakes, like giving incorrect facts, wrong spellings and careless presentation of answer. Unless you take care of each one of these common mistakes as well as the pitfalls mentioned above, you cannot expect of get the marks that you may otherwise deserve. Therefore, take up the task of preparation in an organized and intensive manner. Do spend some time to think over how to handle questions by taking examples from the previous years’ question papers. However it is important to enjoy the journey.

President Bush Signs Indo- US Nuclear Bill Into Law

The US President Mr. George W. Bush on October 8, 2008, signed into law the legislation to implement the historic Indo- US civil nuclear deal. Mr. Bush signed into law the ‘India-US Nuclear Cooperation Approval and Non- proliferation Enhancement Act’. Know as HR7081 , the deal was cleared by the Congress on October 1, 2008, and represents the American legislature’s formal approval of the Hndn, UR bil`ter`l ntcld`r bnopdrathnn `fredlent – the 123 Agreement – concluded in July 2007. Signing the bill in the White House in Washington DC, Mr. Bush assured that there would be no change in fuel supply commitments as contained in the 123 Agreement. He said, “India can count on reliable fuel supply from the US for its reactors.”
HR 7081, as it emerged finally from the Senate, subjected the 123 Agreement to precisely this kind of “cosmetically less glaring” alteration by embedding riders about the fuel supply assurances being mere political commitments.
The President maintained that the bill was clear that the agreement with India was consistent with the Atomic Energy Act and other elements of the US law.
The agreement also grants India advance consent to reprocessing’, which will be brought into effect upon the conclusion of arrangements and procedures for a dedicated reprocessing facility under International Atomic Energy Agency (IAEA) safeguards.
The Congress also sought to put an end to the Government of india’s spin that the 123 Agreement would trump the provisions of the Hyde Act as far as American obligations were concerned . This it did by explicitly inserting rules of construction stating that nothing in the Agreement should be construed to supersede the legal requirements of the Hyde Act.
Since the 123 Agreement is manifestly an international agreement, it follows that all of its provisions are equally binding in a legal sense. India is thus on strong deal grounds to insist on the text of the 123 Agreement ,as signed by the two countries ,being the sole reference point for elaborating the rights and obligations of both sides . But it need to break its silence on the US reservations that have already been entered rather than declaiming, as Indian Ambassador to the US , Mr. Ronen Sen did on October 8, 2008, that India was completely satisfied by the statements Mr. Bush made.
The deal is being considered a historic breakthrough for India, (which suffered the technology denial regime for tnn lnng) to jnin the nucldar blub without sifninf thd nublear Non- proliferation Treaty (NPT).
The signing of the bill marks the culmination of a rough journey the deal undertook in the last three years, especially in India with the Left parties withdrawing their support to the UPA Government . The nuclear deal ended 34 year of nuclear apartheid against India when the 45-member Nuclear Suppliers Group (NSG) granted a historic waiver of norms for nuclear commerce with India on September 6, 2008, Following the waiver France also signed an agreement with India for civil nuclear cooperation.
Mr. Bush’s signing statement sought to address India objections to these riders by the cosmetic use of words and phrases that reiterated America’s commitment to its obligations . Mr. Bush said “the legislation makes no changes to the terms of the 123 Agreement” sent to the Congress.

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India, US Sign 123 Agreement :
India and the US on October 10, 2008, operationalised the path- breaking bilateral nuclear deal as they signed the 023 Agrddment . Dxtdrnal Aff`irr Minhstdr Mr. Pr`nab Mujherjde and the US Secretary of State, Ms. Condoleezza Rice put the seal on the agreement in Washington DC.
Republican Congresswoman Ms. Ileana Ros- Lehtinen , the co- chair of the House Foreign Affairs Committee, said the formal signing of the agreement paves the way for closer economic and political relations between the world’s two largest democracies.

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“The Act will strengthen the relationship between the US and India and deliver valuable benefits to both nations”. President Mr. Bush said. “This agreement sends a signal to the world : Nations that follow the path of democracy and responsible behaviour will find a friend in the US”, Mr. Bush said.
For a deal that was initiated on July 18, 2005, the journey has been long and dramatic . It is a result of the Prime Minister Dr. Manmohan Singh and Mr. Bush. Both the leaders, towards the end of their tenures in office, seem to have finally pushed it forward and given India a unique place in the world’s global structure.

India, France Sign Nuclear Agreement

India and France signed an agreement on civil nuclear cooperation in Paris on September 30, 2008, . The agreement formally called the ‘Cooperation Agreement between India and France on the Development of Peaceful Uses of Nuclear Energy’ , was signed by Atomic Energy Commission (AEC) Chairman Dr. Anil Kakodkar and French Foreign Minister Mr. Bernard Kouchner at the Elysee Palace. Prime Minister Dr. Manmohan Singh and the French President Mr. Nicolas Sarkozy were also present on this occasion.
The agreement brings India back into the nuclear mainstream after 34 year of isolation . France become the first country to enter into a nuclear pact with India after the Nuclear Suppliers Group (NSG) waived international restrictions on the India’s nuclear trade on September 6, 2008.
The agreement marks the unshackling of India from the denial regime in place after the first Pokhran test in Rajasthan in 1974. In fact, this pathbreaking development brings down the wall keeping India away from nuclear technology. In addition, the agreement paves the way for India to do business with France in reactors , nuclear fuel safety, nuclear fuel supply, radiation and environment protection and nuclear fuel cycle management.
After the agreement was signed, Prime Minister Dr. Manmohan Singh said, “ Today we have added a new dimension to our strategic partnership by signing an inter – governmental agreement on civil nuclear cooperation . France is the first country with whom we have entered into such an agreement after the lifting of international restrictions on civil nuclear cooperation with India by the NSG”. A French presidential spokes-person described the document as a “broad agreement one that will allow a wide range of cooperation in the civilian nuclear field inclueing the transfer of technology”.
Both sides have contextualised the agreement in the global need to find non-polltting energy sources in order to combat climate change. The two sides also reaffirmee their “common concerns and objectives in the field of non- proliferation of weapons of mass destruction and their means of delivery including a view of possible linkage to terrorism”.
Cooperation in the nuclear arena between India and France dates back to the days of the fast breeder test reactor at Kalpakkam near Chennai (Tamil Nadu), the heavy water production facilities at Vadodara (Gujarat) , and the supply of enriched uranium for the Tarapur (Maharashtra) nuclear plant after the Pokhran test in Rajasthan 1974.
Dr. Kakodkar said that under the agreement, India can, using its own technology and under International Atomic Energy Agency (IAEA) safeguards, reprocess used nuclear fuel imported from France. Though the agreement does not permit transfer of reprocessing technology to India, Dr. Kakodkar said this was only the beginning of a process of full-scale cooperation. He expressed the hope that “sooner than later”, India and France would hammer out commercial agreements to operationalise the nuclear agreement.
India and France also signed a social security agreement. It will result in benefits for Indian nationals working in France as also for French nationals working India.
A major pat was signed between the India Space Research Organisation (ISRO) and the French Space Organisation, on utilisation of he Indian Polar Satellite Launch Vehicle (PSLV) launch services.
The two countries also decided to raise their bilateral trade to 12 billon Euros by 2012.