Sections:

Section Four package to Support Assessment 1)In a 750-1,000 word essay, draft your suggestion to use software to support assessment in the classroom as a element of your door-to-door Classroom Technology Plan (Benchmark Assessment), which is due(p) in staff 7. Consider the following a)In what ways muckle applied science still the ongoing effort to assess student learning? b)What is the difference amongst formative assessment and summative assessment and how can engineering science be used to facilitate both? c)What are the pros and cons of using technology to assess student learning? )Should a teacher only use technology to assess student learning? Why or why not? 2)Support your rationale from your required readings and from three to five peer-reviewed articles from the GCU eLibrary. 3)Prepare this assignment according to the guidelines erect in the GCU Style Guide, located in the Student Success Center. An elevate is not required. 4)The instructor willing provide com mentary on your draft, which you will then use as a basis for revising this section. The rewrite section will then become part of the complete Comprehensive Classroom Technology Plan (Benchmark Assessment), due in Module 7. attend to the rubric portion of this resource (below) for grading criteria for this assignment. 5)The draft of this section is due by the end of Module 5. Section Five Technology ethical motive in the Classroom 1)Construct a 750-1,000 word essay drafting your proposal for the ethical uses of technology in the classroom as a part of your Comprehensive Classroom Technology Plan (Benchmark Assessment), which is due in Module 7. 2)Address the following issues in your essay a)Discuss Internet security and how you would implement this in your classroom to protect the students from Internet predators and any inappropriate material. )Explain the way that you would fashion proper copyright and student use agreements that could be used in your classroom or in any K-12 cl assroom. c)Discuss three ethical practices of technology use that you would implement in your classroom and explain their importance in a K-12 classroom. 3)Use the GCU eLibrary to research a minimum of three to five peer-reviewed articles that can be used in support of your content. 4)Prepare this assignment according to the guidelines appoint in the GCU Style Guide, located in the Student Success Center. An arise is not required.

Indian Economic Scenario

GLOBSYN BUSINESS SCHOOL STUDY OF THE INDIAN AND mainland China ECO n peerlessY PRESENTED BY Learning multitude 6 (PGPM-11B) Vasundhara Kedia Sourabh Soni Sudeshna Chowdhary Niloy Biswas Sauryadipta Basu Mandeep Pradhan ACKNOWLEDGMENT The quantify spent in the make of this project, as a partition of our class requirement of PGPM endure, is invaluable in terms of learning. The application of concepts to the project added to a capaciouser extent depth and meaning to the knowledge gained in the classroom. We wish to ext decision our gratitude to our ability guide Prof.S Chatterjee, for guiding us done the project with ample assiduity and chthonicstanding. We would also corresponding to thank him for reminding us of the core objectives of the project any(prenominal) time we diverted from it. TABLE OF CONTENTS Abstract PAGE NO. 1. Introduction 4-6 THE INDIAN ECONOMY 2. Pre compound, compound and post-compound India 7- 15 3. Indian supply c atomic outlet 18 & Lib s equencelisation 16-20 4. Indias Economic Reforms and Currency Devaluation 21- 29 5.The quin Year projects In India 30- 56 6. Fiscal Policy of India 57- 63 7. monetary Policy of India 64- 65 8. Impact of Financial Crisis on Indian rescue 66-68 THE ECONOMY OF CHINA 9. Overview of the China Economy 69 10. Fiscal policy, pecuniary policy, Inflation 70-73 11. Contrast between India and Chinas Economy 74-80 ANNEXURE 1. launching Indian Economy Overview pic Indian scotchal system is suppuration, despite the sparing crisis that engulfed the manhood, tell Mr Anand Sharma, Union Minister for Commerce, Industry and Textiles, Goernment of India, charm addressing a sitting at the 11thPravasi Bharatiya Divas 2013. Mr Sharma get on mellowedlighted that the countrifiedal coro land rate is around 33-34 per cent, and is anticipate to profit to 36 per cent by the end of twelfth basketb solely team Year Plan (2012-17). India has been adjourned the fifth best rustic in the world for dynamic growing businesses, as per the confess Thornton Global Dynamism Index. The top executive gives a reflection of how sui panel an environment the inelegant offers for dynamic businesses. Indian tax r chargeue climate was also considered to be reasonably favourable and India go on to be an attractive investment destination, according to a survey conducted by Deloitte Touche Tohmatsu Ltd (Deloitte). to a greater extent than over, India was ranked fourth on Ernst & Youngs (E) renewable attractiveness index, r unwrapine on the solar index, and trey on the wind index, as per the posthumousst field of studyby E and UBM India Pvt Ltd. The Economic Scenario India is expected to be the second longst manufacturing country in the near five days, followed by Brazil as the third ranked country, according to Deloitte. Some of the early(a) substantial stinting schoolings in the country are as follows The HSBCs go Purchasing Managers Index (PMI) af fected a 12 month extravagantly at 57. 5 points in January 2013 as compared to 55. 6 in celestial latitude 2012 The net guide on tax collections in India flush by 13. 70 per cent to record Rs 368,322 crore (US$ 67. 6 jillion) during April-December 2012, as compared to Rs 323,956 crore (US$ 59. 77 one zillion million million) during the corresponding months in 2011 Indian companies pull in raised(a) US$ 4. 29 million, through external commercial adoptions (ECBs) and international gold convertible bonds (FCCBs) in October 2012, to fund red-brickisation, contradictory acquisitions, import of capital goods and forrard lending The total care for of hugger-mugger equity (PE) and mergers & acquisitions (M) views in November 2012 s invent magnitude five-fold to US$ 10. 1 billion, as per a study by Grant Thornton India. The total value of PE deals in November 2012 rose to US$ 39 billion from US$ 0. billion in November 2011, indicating that PE make forers p conti nuered concentrated exposure to their value investments The cumulative amount of conflicting direct investments (FDI) equity in lams into India were worth US$ 187,804 zillion between April 2000 to December 2012, while FDI equity inflow during April 2012 to December 2012 was recorded as US$ 16,946 million, according to the after-hoursst data published by department of industrial Policy and Promotion (DIPP) Foreign institutional investors (FIIs) make a net investment of US$ 68. 46 million in the equity market placement and US$ 14. 2 million in the debt market upto February 18, 2013, according to data released by the Securities and Ex diverge Board of India (SEBI) harvest-tide Potential Story The pharmaceutical market of India is expected to grow at a compound annual evolution rate (CAGR) of 14-17 per cent over 2012-16 and is now ranked among the top five pharmaceutical emerging markets globally The ready-to-drink tea and coffee market in India is estimated to touc h Rs 2,200 crore (US$ 405. 90 million) in next four years, according to estimates arrived at the World Tea and umber Expo 2013 Indias IT and business mental bidding outsourcing (BPO) welkin exports are expected to increase by 12-14 per cent in FY14 to touch US$ 84 billion US$ 87 billion, as per National Association of Software and Services Companies (Nasscom) Indian manufacturing and natural resources industry devises to spend Rs 40,800 crore (US$ 7. 53 billion) on IT products and serve in 2013, a evolution of 9. per cent over 2012, according to Gartner. The telecommunications lineage of study body the biggest spending category and it is forecast to r individually Rs 13,200 crore (US$ 2. 43 billion) in 2013 The semiconductor market is expected to grow from US$ 6. 03 billion in 2011 to US$ 9. 7 billion by 2015. In addition, the topical anesthetic consume and sourcing is estimated to record US$ 3. 6 billion by 2015 The electronic dust design and manufacturing ( ESDM) arena of India is projected to reach US$ 94. 2 billion by 2015 from US$ 64. billion in 2011, according to a give nonice (of) by the India Semiconductor Association (ISA) and Frost & Sullivan The luxury car market of India is slump for gain over the medium and long term, according to Mr Philipp Von Sahr, President, BMW Group India. The market is nearly 30,000 cars a year and is rising steadily, Mr Sahr added The FM intercommunicate domain in India is expected to touch the Rs 2,300 crore (US$ 424. 35 million) mark in spite of appearance triad years of the Phase III licences roll-out, as per estimates by bond of Indian Industry (CII) and Ernst & Young.The sector is expected to reach Rs 1,400 crore (US$ 258. 30 million) with 245 mysterious FM stations during 2012-13 The US$ 12 billion Indian metalworks industry has lined up investments worth Rs 600 crore (US$ 110. 70 million) over the next few years as it expands and adapts environment-friendly measures to garn er global market look at Indian infra social organization landscape would attract investments worth Rs 49,000 billion (US$ 904. 05 billion) during the 12th Five Year Plan period (2012-17), with at least 50 per cent funding from the private sector, as per Governments projections. Road Ahead The Indian economy is estimated to grow at a higher rate of 6. 7 per cent in 2013-14 due to revival in enjoyment, according to a report by CRISIL. Indias gross interior(prenominal) help product growth in 2013-14 will be supported by the revival of private sector consumption growth aided by higher growth in agri shade, high judicature spending and scorn pursuit rates, said Ms Roopa Kudva, Managing Director and CEO, CRISIL. The Indian pecuniary markets withdraw witnessed favouritism among the investing diaspora compared to its Asian counterparts much(prenominal) as South Korea, Taiwan, Thailand and Indonesia, according to a report by Mecklai Financial. Exchange send INR 1 = 0. 1 845 as on February 19, 2013 ReferencesMinistry of pay, Press Information Bureau (PIB), Media Report, Department of Industrial Policy and Promotion (DIPP) Indian Economy before compound Period The earliest known evident civilization which flourished on theIndiansoil was theIndus Valley Civilization. Historians believed that this civilization would cod flourished between the time gear up of 2800 BC and 1800 BC.It is evident from the excavated cities and structures that the inhabitants of the Indus Valley practiced agriculture, home(prenominal)ated animals and had veritable make do human relationships between unlike cities. They are also known to urinate developed a uniform agreement of weights and measures. Also, the inhabitants of Indus Valley were one amongst the rattling for the first-class honours degree time of plurality to piss developed a nedeucerk of tumesce think cities with their application of urban planning. These planned citi es were equipped with the worlds first urban sanitation agreements. Indiahad been successful to develop worldwide wad since as early as the first snow BC.Historical evidences suggest that the Coromandel, the Malabar, the Saurashtra and theBengalcoasts were excessively use for the transitation of goods via sea roots from and towardsIndia. In the ancient times,Indiaconducted international trade mainly with parts of Middle easterly, Southeast Asia, Europe and Africa. Overland international trade, conducted via Khyber Pass, was also prevalent in ancientIndia. Later, in medieval times, theMughal empiregave musical mode to a profoundly administered uniform revenue policy and semi semi policy-making stability inIndiawhich in turn point to the still training of trade and unified the nation. During this era,Indiawas in the beginning an agrarian self-sufficienteconomywhich to begin with depended on the primitive methods of agriculture.After the downfall of the Mughal pudd ing stone, theeconomy of Indiawas primarily governed by theMaratha Empirewhich then regulated over most parts ofIndia. Later, the Maratha defeat in the third battle of Panipat dis mergedIndiainto several Maratha confederate states which raised a widespread political turmoil in the country. Theeconomy of Indiaturned exceedingly disturbed in most parts of the country during this pattern, still most areas gained a local prosperity in addition. Later, by the end of eighteenth ampere-second, theBritish East India Companywas successful in being a part of theIndianpolitical machinery, following which in that location was a drastic change in the countrys sparing activities and the trade conducted from theIndiansoil. Indian Economy during Colonial Period During the reign of theBritish East India Company, on that point was a drastic shift in the frugal activities conducted across the country. More stress was laid on commercialization of agriculture. This le d to a change in the agri ethnic pattern across the nation.During this phase of theIndian economy, there was a constant slouch in the production of pabulum grains in the country which resulted to the mass impoverishment and destitution of farmers. Also, in a short(p) span after this shift of pattern, there were numerous famines raised in the country. Though, after and during this phase, there was a sharp capitulation in the scotchstructure of the country, more thanover this was also the phase during which some study and sparingallyimportant schoolings took place. These developments include the establishment of railways, telegraphs, common law and adversarial legal system. Also, it was during this era that a civil service which essentially aimed to be free from the political interference was naturalized. Post-Colonialism Definition, Development and Examples from India 1. Post-colonialism in general 1. 1 Definition Post-colonialism is an gifted direction (some times also called an era or the post-colonial theory) that exists since around the nerve of the 20thcentury. It developed from and mainly refers to the time after colonialism. The post-colonial direction was created as colonial countries became croakaway. right away, aspects of post-colonialism tush be strand not only in sciences concerning memoir, literature and politics, but also in memory access to culture and identity element of twain the countries that were colonised and the former colonial index numbers. However, post-colonialism hobo take the colonial time as well as the time after colonialism into consideration. 1. 2 Development The term decolonization seems to be of particular importance while talking somewhat post-colonialism. In this case it means an intellectual process that persistently transfers the independency of former-colonial countries into peoples minds.The basicideaof this process is the deconstruction of old-fashioned perceptions and attitu des of top executive and oppression that were select during the time of colonialism. first base attempts to put this long-term policy of decolonising the minds into practice could be regarded in the Indian existence after India became independent from the British Empire in 1947. However, post-colonialism has more and more be deal an object of scientific examination since 1950 when Western intellectuals began to get evoke in the Third World countries. In the seventies, this interest rail to an consolidation of sermons round post-colonialism in various study courses at American Universities. Nowadays it also act upons a remarkable utilization at European Universities. A major aspect of post-colonialism is the rather violent-like, unbuffered contact or clash of cultures as an inevitable result of former colonial times the relationship of the colonial power to the (formerly) colonised country, its existence and culture and vice versa seems extremely indistinct and co ntradictory. This contradiction of two clashing cultures and the wide scale of problems resulting from it must be regarded as a major theme in post-colonialism For centuries the colonial suppresser gene often had been forcing his civilised values on the natives. But when the native cosmos concludingly gained liberty, the colonial relicts were understood omnipresent, deeply integrated in the natives minds and were divinatory to be removed. So decolonisation is a process of change, destruction and, in the first place, an attempt to regain and lose power.While natives had to learn how to put independence into practice, colonial powers had to accept the loss of power over immaterial countries. However, both sides eat up to deal with their past as suppressor and suppressed. This complicated relationship mainly developed from the Eurocentric perspective from which the former colonial powers precept themselves Their colonial policy was often criticised as arrogant, ignora nt, brutal and simply naive. Their final colonial failure and the total independence of the once suppressed do the process of decolonisation rather tense and emotional. Post-colonialism also deals with pieces of identity and cultural belonging.Colonial powers came to overseas states and destroyed main parts of native tradition and culture furthermore, they continuously replaced them with their own ones. This often lead to disputes when countries became independent and suddenly face the scrap of exploitation a new nationwide identity and self-confidence. As generations had lived under the power of colonial rulers, they had more or less adopted their Western tradition and culture. The challenge for these countries was to find an various(prenominal) way of continue to call their own. They could not get rid of the Western way of animation from one day to the other they could not manage to create a completely new one either. On the other hand, former colonial powers ha d to change their self- opinion.This paradox identification process seems to be what decolonisation is all about, while post-colonialism is the intellectual direction that deals with it and maintains a steady analysis from both points of view. So how is this rugged process of decolonisation being done? By the power of language, even more than by the use of military madness. voice communication is the intellectual means by which post-colonial communication and reflection takes place. This is in particular important as most colonial powers tried to integrate their language, the major aspect of their civilised culture, in foreign societies. A lot of Indian withstands that can be attached to the era of post-colonialism, for instance, are written in English.The cross-b suppose deepen of thoughts from both parties of the post-colonial conflict is supported by the use of a shared out language. To give a conclusion of it all, one might say that post-colonialism is a vivid di scussion about what happened with the colonial thinking at the end of the colonial era. What legacy arouse from this era? What kind, cultural and scotchal consequences could be seen and are still visible today? In these contexts, one examines alter devours of suppression, impedance, gender, migration and so forth. While doing so, both the colonising and colonised side are interpreted into consideration and related to each other. The main target of post-colonialism remains the comparable To review and to deconstruct one-sided, worn-out attitudes in a lively discussion of colonisation. 2. The post-colonial experience in India 2. 1 story of Indian colonialism In the sixteenthcentury, European powers began to conquer small outposts along the Indian coast. Portugal, the Netherlands and France ruled different regions in India before the British East India Company was founded in 1756. The British colonialists managed to control most parts of India while ruling the depi ct cities Calcutta, Madras and Bombay as the main British bases. However, there still remained a few independent regions (Kashmir among others) whose lords were loyal to the British Empire. In 1857, the first big rebellion took place in the north of India. The incident is also named First war of Indian Independence, the Sepoy Rebellion or the Indian Mutiny, depending on the individual perspective. This was the first time Indians rebelled in massive numbers against the presence and the rule of the British in South Asia. The rebellion failed and the British colonialists go along their rule. In 1885, the National Indian Congress (popularly called Congress) was founded. It demanded that the Indians should hand their proper recognized share in the organisation. From then on, the Congress developed into the main physical structure of opposition against British colonial rule. Besides, a Moslem anti-colonial organisation was founded in 1906, called the Muslim League. While mo st parts of the Indian population remained loyal to the British colonial power during the First World War, more and more Muslim people joined the Indian independence attempt since they were angry about the division of the Ottoman Empire by the British. The non-violent resistance against British colonial rule, mainly initiated and organised by Mahatma Gandhi and Jawaharlal Nehru, finally lead to independence in 1947. At the same time, the capacious British small town was split into two nations The secular Indian Union and the smaller Muslim state of Pakistan. The Muslim League had demanded for an independent Muslim state with a batch of Muslims. India became a member of the British Commonwealth after 1947. 2. 2 Post-colonial development in India The section of India (also called the Great Divide) lead to huge movements and an ethnic conflict across the Indian-Pakistani border.While around 10 million Hindus und Sikhs were expelled from Pakistan, about 7 million Muslims crossed the border to from India to Pakistan. Hundreds of thousands of people died in this conflict. forever since these incidents, there have been tensions between India and Pakistan which lead to different wars particularly in the Kashmir region. For decades the Congress Party ruled the democratic country which had become a re domain with its own constitution in 1950. In 1977 the opposition gained the majority of votes. In 1984, after the Congress Party had regained the majority, conflicts with the cultural minority of the Sikhs lead to the assassination of the Indian prime minister Indira Ghandi. Today, apart from the significant scotchal progress, India is still facing its old problems Poverty, overpopulation, environmental pollution as well as ethnic and religious conflicts between Hindus and Muslims. Additionally, the Kashmir conflict has not come to an end yet, while both Pakistan and Indian are threatening each other with their arsenals of atomic weapons. Concerning post-colonial literature, Edward Saids book Orientalism (published in 1978) is regarded as the beginning of post-colonial studies. In this book the author analyses how European states initiated colonialism as a result of what they called their own racial superiority. The religious-ethnic conflicts between different groups of people play an important role in the early years of post-colonialism. Eye-witnesses from both sides of the Indian-Pakistani conflict wrote about their feelings and experience during genocide, being confronted to blind and irrational violence and hatred. The Partition is often described as an Indian trauma. wizard example for a post-colonial scriptwriter who wrote about this conflict is Saddat Hasan Manto (1912 1955). He was forced to leave Bombay and to settle in Lahore, Pakistan. He published a collection of stories and sketches (Mottled Dawn) that deal with this dark era of Indian history and its immense social consequences and uncountable tragedies. Furthermore, there are many different approaches to the topic of intercultural change between the British and the Indian population. Uncountable essays and novels deal with the ambiguous relationship between these two nations. One particularly interesting phenomenon is that authors from both sides try to write from different angles and perspectives and in that way to show empathy with their cultural counterpart. The most storied novelist who wrote about these social and cultural exchanges is Salman Rushdie. Rushdie, who won the booker prize among various others, was born in India, but studied in England and started write books about India and the British in the early eighties. His funny, brave, metaphoric and sometimes even ironical way of writing offers a multi-perspective approach to the post-colonial complex.This can be also seen in his book Midnights Children. In the past, Salman Rushdie was also repeatedly threatened by Irani fundamentalists because of his scathing writing about Muslim extremism in the Middle East. Another notable post-colonial novel is Heat and Dust (published in 1975) by Ruth Prawer Jhabvala that contains two plot set in different times One about a British lady starting an affair with a local Indian prince in the 1920s, the other one set in the 1970s, featuring childlike Europeans on a hippie trail who claim they have leave behind Western civilisation and are trying to some spiritual home among Indian gurus. Bollywood has become a notorious synonym for the uprise Indian film industry in recent years. Young Indian scriptwriters have dis get byed post-colonial issues as themes for their movies and as a way of dealings with the changeful past of their country. Concerning the integration of Western values in the Indian population and culture, one can say that the British influence is still omnipresent in the Asian subcontinent. The reason for this can be also found in the persistence of the English language. many In dians are informed with the English language, because the British colonialists intended to export their values and culture by teaching the Indian population their language.This was regarded as the basic fundament for further education. What about the relationship between India and the United Kingdom today? It is a special one, and of course still not without tensions between these two nations that refer to the time of colonialism which from our retro perspective is not at all so far away. India has managed to become an independent state with its own political system and is still working to find its own identity. The longer the process of decolonisation lasts, the more we get the impression that only a midpoint course between the acceptance of British legacies and the creation of a new fantastic Indian self-confidence will be the right way to go for India. Indian Economy before Liberalization After independence, till 1991, the scotch policies of Indiawe re primarily inspired by the Soviet economical planningunder which a strong emphasis was laid on increasing the domestic self-sufficiency and reducing the faith on imports. Theeconomic policies of Indiaduring this phase were primarily protectionist and marked by excessiveeconomicinterventions and business regulations. Also, during this era the major concern of the regimen was to develop large and heavy normal sector industries. Theeconomic planning processduring this phase was mainly conducted centrally through theFive Year Planning processof thePlanning commission. This structure ofeconomic planning, throughFive Year Plans, was analogous to theplanning processof the Soviet Union. Industries like mining, steel, machine tools, insurance, telecommunications and power plants were effectively nationalized during this era. The Government ofIndia, under the leaders ofIndias first Prime Minister, Jawaharlal Nehru, along with statistician Prasanta Chandra Mahalanobis formulated a neconomic policywhich laid a prime focus on the development of heavy industry in country by both the public and the private sector.However, despite all its efforts, theeconomy of Indiawas unsuccessful to grow at pace with other Asian countries for the first three decades after independence. Later, in 1965, the advent of Green Revolution in country, triggered by the improved irrigation facilities, increase use of fertilizers and the introduction of high-yielding varieties of seeds improved the economic conditions of the country and enabled a erupt link between industry and agriculture inIndia. The economic policies of the colonial rulers were at the centre of a controversy in the late nineteenth century India.Whereas the colonial administration sought to project its policies as ripe to the country, the nationalist writers and sympathetic British commentators attacked these policies as exploitative and oppressive. Dadabhai Naoroji, R. C. Dutt and William Digby were some of the famous critics of regime policies. The economic history of India, as we know it, whitethorn be said to have begun during this period. D. R. Gadgil, Vera Anstey and D. H. Buchanan followed in their footsteps in taking up the economic history of the colonial period. Jaduanth Sarkar and W. H. Moreland wrote about the Mughal economy. In the post-independence period, economic history became an realised field of study and several studies were undertaken on various periods of Indian history covering several aspects of economy.The growth of economics as a tick in the eighteenth century led in due course to the development of a new branch in history called economic history. The progenitors of economics were pass Smith and other unpolluted economists. India was very oft in the vision of the classical economists, a group of thinkers in England during the Industrial Revolution. They advocated lays faire and minimizing of state intervention in the economy. Adam Smith, the fore most classical economist, condemned the East India Company in its new role as the ruling power in India. In his view, the Companys trading monopoly ran counter to the principle of the freedom of the market. economic science underwent a theoretical transformation in the early twentieth century under the influence of John Maynard Keynes, who advocated strategic economic intervention by the government for promoting welfare and business. Keynes, too, thought deeply about India while development his new economic theories, and his earliest majorwork. Indian Currency and Finance (London 1913), illustrated his notions of good monetary management of the economy. It is also noteworthy that the early classical economists, such as Ricardo, influenced the thinking of a group of Utilitarian administrators who set about disentangleing the administration of India in the nineteenth century. Above all, the influence of Adam Smith is noticeable in the end of the Companys monopoly by the Ch arter Acts of 1813 and 1833.Not surprisingly, therefore, historians have paid close attention to the connection between the evolution of economic thought in England and the question of reform of the colonial administration in India. Classical political economy in England laid the foundations for the laissez faire economics of the Raj in the nineteenth century. Keynesian economics, on the other hand, contained the germs of the development economics of the mid-twentieth century both types of economics affected the state and the economy in India, and affect debates in the economic history of India. For the colonial period, R. C. Dutts Economic History was followed by a series of works D. R.Gadgil, The Industrial Evolution of India in new Times (1924) Vera Anstey, The Economic Development of India (1929) and D. H. Buchanan, and The Development of Capitalistic Enterprise in India (New York 1934). More recently, there has been a collective two-volume survey Tapan Raychaudhuri an d Irfan Habib (eds. ). The Cambridge Economic History of India, Vol 1, C. 1200 C. 1750 (Cambridge 1982) and Dharma Kumar, The Cambridge Economic History of India, vol. 2 C. 1757 C. 1970 (Cambridge, 1983). Daniel Houston Buchanan, an American author, was of the opinion that other materialistic values and the caste system inhibited economic development in India. D. R.Gadgil, who updated his near classic work several times, evince, on the contrary, more purely economic factors the difficulties of capital militarisation on account of the absolute slightness of capital resources in respect to the size of the population, the late development of organized banking, and the seasonal fluctuations of a monsoon economy. A dispassionate economist, he did not denounce either foreign rule or the Indian social structure for the absence of an industrial revolution in India some of the Western contributors to the second volume of The Cambridge Economic History, on the other hand, sho wed a disposition to challenge R. C.Dutts vision of the ban collision of colonialism, and they dwelt instead on the technological modesty of the Indian economy. This, in their view, inhibited industrial development and capitalist endeavour during the colonial period. THE INDIAN PLANNING COMMISSION HISTORY The Planning Commission was set up by a Resolution of the Government of India in March 1950 in pursuance of declared objectives of the Government to promote a rapid rise in the standard of living of the people by cost-efficient exploitation of the resources of the country, increasing production and offering opportunities to all foremploymentin the service of the community.The Planning Commission was charged with the responsibility of making assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective and equilibrate exercise of resources and determining priorities. Jawaharlal Nehru was the first Chairman of the Pla nning Commission. The first Five-year Plan was launched in 1951 and two subsequent five-year plans were formulated till 1965, when there was a break because of the Indo-Pakistan Conflict. Two serial years of drought, devaluation of the funds, a general rise in values and erosion of resources disrupted the planning process and after three yearbook Plans between 1966 and 1969, the fourth Five-year plan was started in 1969.The Eighth Plan could not take off in 1990 due to the fast changing political situation at the Centre and the years 1990-91 and 1991-92 were treated as annual Plans. The Eighth Plan was finally launched in 1992 after the initiation of structural adjustment policies. For the first eight Plans the emphasis was on a growing public sector with massive investments in basic and heavy industries, but since the launch of the Ninth Plan in 1997, the emphasis on the public sector has become less pronounced and the current thinking on planning in the country, in general, is that it should increasingly be of an indicative nature. FUNCTIONS The 1950 effect setting up the PlanningCommissionoutlined its functions as to a.Make an assessment of the material, capital and human resources of the country, including technical personnel, and investigate the possibilities of augmenting such of these resources as are found to be deficient in relation to the nations requirement b. Formulate a Plan for the most effective and balanced utilisation of countrys resources c. On a determination of priorities, define the stages in which the Plan should be carried out and propose the allocation of resources for the due completion of each stage d. Indicate the factors which are tending to retard economic development, and act upon the conditions which, in view of the current social and political situation, should be established for the successful execution of the Plan e.Determine the nature of the machinery which will be incumbent for securing the successful implementatio n of each stage of the Plan in all its aspects f. Appraise from time to time the progress achieved in the execution of each stage of the Plan and recommend the adjustments of policy and measures that such appraisal may show to be necessary and g. Make such interim or ancillary recommendations as appear to it to be appropriate either for facilitating the go off of the duties assigned to it, or on a consideration of prevailing economic conditions, current policies, measures and development programmes or on an examination of such precise problems as may be referred to it for advice by Central or subject Governments. EVOLVING FUNCTIONSFrom a highly centralised planning system, the Indian economy is stepwise moving towards indicative planning where Planning Commission concerns itself with the building of a long term strategic vision of the future and decide on priorities ofnation. It works out sectoral targets and provides promotional stimulus to the economy to grow in the desired di rection. Planning Commission plays an integrative role in the development of a holistic approach to the policy formulation in decisive areas of human and economic development. In the social sector, schemes which require coordination and synthesis like countryfied health, drinking water, folksy energy needs, literacy and environment protection have yet to be subjected to coordinated policy formulation. It has led to multiplicity of agencies. An integrated approach can lead to better results at much lower costs.The emphasis of the Commission is on maximising the output by development our limited resources optimally. Instead of looking for mere increase in the plan outlays, the effort is to look for increases in the efficiency of utilisation of the allocations being made. With the emergence of severe constraints on available budgetary resources, the resource allocation system between the States and Ministries of the Central Government is under strain. This requires the Planning Com mission to play a mediatory and facilitating role, solemnizeing in view the best interest of all concerned. It has to ensure smooth management of the change and help in creating a culture of high productivity and efficiency in the Government.The key to efficient utilisation of resources lies in the creation of appropriate self-managed organisations at all levels. In this area, Planning Commission attempts to play a systems change role and provide consultancy within the Government for developing better systems. In order to spread the gains of experience more widely, Planning Commission also plays an discipline dissemination role. India-Liberalization in the Early 1990s Growth since 1980 Increased borrowing from foreign sources in the late 1980s, which helped fuel economic growth, led to storm on the balance of payments. The problem came to a head in idealistic 1990 when Iraq invaded Kuwait, and the price of oil soon doubled.In addition, many Indian workers resident in Persian Gu lf states either lost their jobs or returned home out of cultism for their safety, thus reducing the flow of remittances (see Size and Composition of the ca-ca Force, this ch. ). The direct economic impact of the Persian Gulf conflict was exacerbated by domestic social and political developments. In the early 1990s, there was violence over two domestic issues the reservation of a likeness of public-sector jobs for members of schedule Castes (see Glossary) and the Hindu-Muslim conflict at Ayodhya (see Public Worship, ch. 3 Political Issues, ch. 8). The central government set down in November 1990 and was succeeded by a minority government. The cumulative impact of these events agitate international confidence in Indias economic viability, and the country found it increasingly difficult to borrow internationally.As a result, India made various agreements with the world(prenominal) monetary Fund (IMFsee Glossary) and other organizations that included commitments to speed up rel axation (see United Nations, ch. 9). In the early 1990s, right smart progress was made in loosening government regulations, especially in the area of foreign trade. Many restrictions on private companies were lifted, and new areas were opened to private capital. However, India remains one of the worlds most tightly regulated major economies. Many fibrous vested interests, including private firms that have benefited from protectionism, labor unions, and much of the bureaucracy, oppose liberalization.There is also long concern that liberalization will reinforce class and regional economic disparities. The balance of payments crisis of 1990 and subsequent policy changes led to a temporary decline in the GDP growth rate, which fell from 6. 9 percent in FY 1989 to 4. 9 percent in FY 1990 to 1. 1 percent in FY 1991. In March 1995, the estimated growth rate for FY 1994 was 5. 3 percent. Inflation peaked at 17 percent in FY 1991, fell to 9. 5 percent in FY 1993, and then accelerated aga in, reaching 11 percent in late FY 1994. This increase was attributed to a sharp increase in prices and a famine in such critical sectors as sugar, cotton, and oilseeds.Many analysts agree that the short hurt most from the increase inflation rate and reduced growth rate. entropy as of September 1995 The rate of growth improved in the 1980s. From FY 1980 to FY 1989, the economy grew at an annual rate of 5. 5 percent, or 3. 3 percent on a per capita basis. Industry grew at an annual rate of 6. 6 percent and agriculture at a rate of 3. 6 percent. A high rate of investment was a major factor in improved economic growth. Investment went from about 19 percent of GDP in the early 1970s to nearly 25 percent in the early 1980s. India, however, required a higher rate of investment to master comparable economic growth than did most other low-income developing countries, indicating a lower rate of return on investments.Part of the adverse Indian experience was explained by investment in la rge, long-gestating, capital-intensive projects, such as electric power, irrigation, and infrastructure. However, slow completions, cost overruns, and under-use of capacity were contributing factors. Private savings financed most of Indias investment, but by the mid-1980s further growth in private savings was difficult because they were already at quite a high level. As a result, during the late 1980s India relied increasingly on borrowing from foreign sources (see Aid, this ch. ). This contract led to a balance of payments crisis in 1990 in order to incur new loans, the government had no choice but to agree to further measures of economic liberalization.This commitment to economic reform was reaffirmed by the government that came to power in June 1991. Indias primary sector, including agriculture, forestry, fishing, mining, and quarrying, accounted for 32. 8 percent of GDP in FY 1991 (see table 17, Appendix). The size of the outlandish sector and its vulnerability to the vagari es of the monsoon cause comparatively large fluctuations in the sectors contribution to GDP from one year to another (see straddle Output, ch. 7). In FY 1991, the contribution to GDP of industry, including manufacturing, construction, and utilities, was 27. 4 percent services, including trade, transportation, communications, real estate of the realm and finance, and public- and private-sector services, contributed 39. 8 percent.The steady increase in the proportion of services in the national economy reflects increased market-determined processes, such as the spread of inelegant banking, and government activities, such as defense spending (see Agricultural Credit, ch. 7 Defense Spending, ch. 10). Despite a sometimes disappointing rate of growth, the Indian economy was transformed between 1947 and the early 1990s. The number of kilowatt-hours of electricity generated, for example, increased more than fiftyfold. Steel production rose from 1. 5 million wads a year to 14. 7 million tons a year. The country produced spot satellites and nuclear-power plants, and its scientists and engineers produced an atomic explosive device (see Major Research Organizations, this ch. blank shell and Nuclear Programs, ch. 10).Life expectancy increased from twenty-seven years to fifty-nine years. Although the population increased by 485 million between 1951 and 1991, the availability of food grains per capita rose from 395 grams per day in FY 1950 to 466 grams in FY 1992 (see Structure and Dynamics, ch. 2). However, considerable dualism remains in the Indian economy. Officials and economists make an important distinction between the formal and open sectors of the economy. The informal, or unorganized, economy is largely rural and encompasses farming, fishing, forestry, and cottage industries. It also includes short vendors and some small-scale mechanized industry in both rural and urban areas.The bulk of the population is employed in the informal economy, which contributes more than 50 percent of GDP. The formal economy consists of large units in the modern sector for which statistical data are relatively good. The modern sector includes large-scale manufacturing and mining, major financial and commercial businesses, and such public-sector enterprises as railroads, telecommunications, utilities, and government itself. The greatest disappointment of economic development is the failure to reduce more substantially Indias widespread poverty. Studies have suggested that income distribution changed little between independence and the early 1990s, although it is possible that the poorer half of the population improved its position slightly.Official estimates of the proportion of the population that lives below the poverty line tend to vary sharply from year to year because adverse economic conditions, especially rises in food prices, are capable of lowering the standard of living of many families who usually live just above the subsistence level. The Ind ian governments poverty line is establish on an income sufficient to ensure access to minimum nutritional standards, and even most persons above the poverty line have low levels of consumption compared with much of the world. Estimates in the late 1970s put the number of people who lived in poverty at 300 million, or nearly 50 percent of the population at the time. Poverty was reduced during the 1980s, and in FY 1989 it was estimated that about 26 percent of the population, or 220 million people, lived below the poverty line. pokey economic growth and higher inflation in FY 1990 and FY 1991 reversed this trend.In FY 1991, it was estimated that 332 million people, or 38 percent of the population, lived below the poverty line. Farmers and other rural residents make up the large majority of Indias poor. Some own very small amounts of land while others are field hands, seminomadic shepherds, or migrant workers. The urban poor include many construction workers and petty vendors. The bu lk of the poor work, but low productivity and intermittent employment keep incomes low. Poverty is most prevalent in the states of Orissa, Bihar, Uttar Pradesh, and Madhya Pradesh, and least prevalent in Haryana, Punjab, Himachal Pradesh, and Jammu and Kashmir. By the early 1990s, economic changes led to the growth in the number of Indians with significant economic resources.About 10 million Indians are considered upper class, and rough 300 million are part of the rapidly increasing middle class. Typical middle-class occupations include owning a small business or being a corporate executive, lawyer, physician, white-collar worker, or land-owning farmer. In the 1980s, the growth of the middle class was reflected in the increased consumption of consumer durables, such as televisions, refrigerators, motorcycles, and automobiles. In the early 1990s, domestic and foreign businesses hoped to take advantage of Indias economic liberalization to increase the range of consumer products offer ed to this market. Housing and the ancillary utilities of sewer and water systems lag considerably behind the populations needs.Indias cities have large shantytowns built of scrap or readily available natural materials erected on whatever space is available, including sidewalks. Such dwellings lack piped water, sewerage, and electricity. The government has attempted to build admit facilities and utilities for urban development, but the efforts have fallen far short of demand. Administrative controls and other aspects of government policy have discouraged many private investors from constructing housing units. Liberalization in the Early 1990s Increased borrowing from foreign sources in the late 1980s, which helped fuel economic growth, led to pressure on the balance of payments. The problem came to a head in August 1990 when Iraq invaded Kuwait, and the price of oil soon doubled.In addition, many Indian workers resident in Persian Gulf states either lost their jobs or returned home out of fear for their safety, thus reducing the flow of remittances (see Size and Composition of the Work Force, this ch. ). The direct economic impact of the Persian Gulf conflict was exacerbated by domestic social and political developments. In the early 1990s, there was violence over two domestic issues the reservation of a proportion of public-sector jobs for members of Scheduled Castes (see Glossary) and the Hindu-Muslim conflict at Ayodhya (see Public Worship, ch. 3 Political Issues, ch. 8). The central government fell in November 1990 and was succeeded by a minority government. The cumulative impact of these events shook international confidence in Indias economic viability, and the country found it increasingly difficult to borrow internationally.As a result, India made various agreements with the International Monetary Fund (IMFsee Glossary) and other organizations that included commitments to speed up liberalization (see United Nations, ch. 9). In the early 1990s, conside rable progress was made in loosening government regulations, especially in the area of foreign trade. Many restrictions on private companies were lifted, and new areas were opened to private capital. However, India remains one of the worlds most tightly regulated major economies. Many powerful vested interests, including private firms that have benefited from protectionism, labor unions, and much of the bureaucracy, oppose liberalization. There is also considerable concern that liberalization will reinforce class and regional economic disparities.The balance of payments crisis of 1990 and subsequent policy changes led to a temporary decline in the GDP growth rate, which fell from 6. 9 percent in FY 1989 to 4. 9 percent in FY 1990 to 1. 1 percent in FY 1991. In March 1995, the estimated growth rate for FY 1994 was 5. 3 percent. Inflation peaked at 17 percent in FY 1991, fell to 9. 5 percent in FY 1993, and then accelerated again, reaching 11 percent in late FY 1994. This increase was attributed to a sharp increase in prices and a shortage in such critical sectors as sugar, cotton, and oilseeds. Many analysts agree that the poor suffer most from the increased inflation rate and reduced growth rateINDIAS ECONOMIC REFORMS The reform process in India was initiated with the aim of accelerating the pace of economic growth and eradication of poverty. The process of economic liberalization in India can be traced back to the late 1970s. However, the reform process began in vehement only in July 1991. It was only in 1991 that the Government signaled a systemic shift to a more open economy with greater reliance upon market forces, a larger role for the private sector including foreign investment, and a restructuring of the role of Government. The reforms of the last decade and a half have gone a long way in freeing the domestic economy from the control regime.An important feature of Indias reform programme is that it has emphasized gradualism and evolutionary transition rather than rapid restructuring or shock therapy. This approach was adopted since the reforms were introduced in June 1991 in the wake a balance of payments crisis that was surely severe. However, it was not a prolonged crisis with a long period of non-performance. The economic reforms initiated in 1991 introduced far-reaching measures, which changed the working and machinery of the economy. These changes were pertinent to the following Dominance of the public sector in the industrial activity Discretionary controls on industrial investment and capacity expansion Trade and exchange controls Limited access to foreign investment Public ownership and regulation of the financial sector The reforms have unlocked Indias enormous growth potential and unleashed powerful entrepreneurial forces. Since 1991, successive governments, across political parties, have successfully carried forward the countrys economic reform agenda. Reforms in Industrial Policy Industrial policy was restructur ed to a great extent and most of the central government industrial controls were dismantled. Massive deregulation of the industrial sector was done in order to bring in the element of competition and increase efficiency. Industrial licensing by the central government was almost abolished except for a few hazardous and environmentally sensitive industries.The list of industries reserved solely for the public sector which used to cover 18 industries, including iron and steel, heavy plant and machinery, telecommunications and telecom equipment, minerals, oil, mining, air transport services and electricity generation and distribution was drastically reduced to three defense aircrafts and warships, atomic energy generation, and railway transport. Further, restrictions that existed on the import of foreign technology were withdrawn. Reforms in Trade Policy It was realized that the import alter inward looking development policy was no longer fitted in the modern globalising world. Befo re the reforms, trade policy was characterized by high tariffs and pervasive import restrictions. Imports of manufactured consumer goods were completely banned. For capital goods, raw materials and intermediates, veritable lists of goods were freely importable, but for most items where domestic substitutes were being produced, imports were only possible with import licenses.The criteria for issue of licenses were non-transparent, delays were endemic and corruption unavoidable. The economic reforms sought to phase out import licensing and also to reduce import duties. Import licensing was abolished relatively early for capital goods and intermediates which became freely importable in 1993, simultaneously with the switch to a flexible exchange rate regime. Quantitative restrictions on imports of manufactured consumer goods and agricultural products were finally removed on April 1, 2001, almost exactly ten years after the reforms began, and that in part because of a ruling by a World Trade Organization dispute panel on a complaint brought by the United States. Financial sector reformsFinancial sector reforms have long been regarded as an integral part of the overall policy reforms in India. India has recognized that these reforms are imperative for increasing the efficiency of resource mobilization and allocation in the real economy and for the overall macroeconomic stability. The reforms have been driven by a thrust towards liberalization and several initiatives such as liberalization in the interest rate and reserve requirements have been taken on this front. At the same time, the government has emphasized on stronger regulation aimed at strengthening prudential norms, transparency and supervision to moderate the prospects of systemic risks.Today the Indian financial structure is inherently strong, functionally diverse, efficient and globally competitive. During the last fifteen years, the Indian financial system has been incrementally deregulated and undefe nded to international financial markets along with the introduction of new instruments and products. Devaluation of the Rupee tosh of Two Years, 1966 and 1991 Since its Independence in 1947, India has face two major financial crises and two consequent devaluations of the rupee. These crises were in 1966 and 1991 and, as we plan to show in this paper, they had similar causes. Foreign exchange reserves are an extremely critical aspect of any countrys ability to engage in commerce with other countries.A large stock of foreign coin reserves facilitates trade with other nations and lowers transaction costs associated with international commerce. If a nation depletes its foreign currency reserves and finds that its own currency is not accepted abroad, the only option left to the country is to borrow from abroad. However, borrowing in foreign currency is built upon the obligation of the borrowing nation to pay back the loan in the lenders own currency or in some other hard currency. If the debtor nation is not credit-worthy enough to borrow from a private bank or from an institution such as the IMF, then the nation has no way of paying for imports and a financial crisis accompany by devaluation and capital pip results.The destabilising effects of a financial crisis are such that any country feels strong pressure from internal political forces to avoid the risk of such a crisis, even if the policies adopted come at large economic cost. To avert a financial crisis, a nation will typically adopt policies to maintain a stable exchange rate to diminish exchange rate risk and increase international confidence and to bulwark its foreign currency (or gold) reserves. The restrictions that a country will put in place come in two forms trade barriers and financial restrictions. Protectionist policies, particularly restrictions on imports of goods and services, belong to the former category and restrictions on the flow of financial assets or money across international bo rders are in the last mentioned category.Furthermore, these restrictions on international economic activity are often accompanied by a policy of fixed or managed exchange rates. When the flow of goods, services, and financial capital is regulated tightly enough, the government or central bank becomes strong enough, at least in theory, to dictate the exchange rate. However, despite these policies, if the market for a nations currency is too weak to justify the given exchange rate, that nation will be forced to devalue its currency. That is, the price the market is willing to pay for the currency is less than the price dictated by the government. The 1966 Devaluation As a developing economy, it is to be expected that India would import more than it exports.Despite government attempts to obtain a positive trade balance, India has had consistent balance of payments deficits since the 1950s. The 1966 devaluation was the result of the first major financial crisis the government faced. As in 1991, there was significant downward pressure on the value of the rupee from the international market and India was faced with depleting foreign reserves that necessitated devaluation. There is a general agreement among economists that by 1966, inflation had caused Indian prices to become much higher than world prices at the pre-devaluation exchange rate. When the exchange rate is fixed and a country experiences high inflation relative to other countries, that countrys goods become more expensive and foreign goods become cheaper.Therefore, inflation tends to increase imports and decrease exports. Since 1950, India ran continued trade deficits that increased in magnitude in the 1960s. Furthermore, the Government of India had a budget deficit problem and could not borrow money from abroad or from the private corporate sector, due to that sectors negative savings rate. As a result, the government issued bonds to the RBI, which increased the money supply. In the long run,

Pillars of Society Matrix Essay

governing ar all about power, and authority. The political sympathies is about takeing and running services, such(prenominal) as mining, steel, energy, forestry, telephones, television stations, and airlines (Henslin, 2011). The United States has adopted many socialist practices. The well-nigh obvious is the government taking notes from some individuals to pay for benefits of early(a). The government has complete control over all aspects of our lives. They control from food, housing, imports, exports the whole right on dollar.The government has put the United States in debt and put more Ameri posts on the street with a failing economy. Inflation has mutilate many of us, currently gas is $4.09 people be no drawn-out cosmos able to afford to drive their vehicles. I gull an fall and it cost me nearly $100+ dollars to fill up. I can ask in mind when we paid $1.98. The government controls petroleum and chooses not to dig in our own back yards but in foreign countries. Comm unities impingement political voices we have a choice in whom we may choose to elect to catch up with our states and our nation, the candidates all seek the major(ip)ity votes. Communities can have an squeeze of what is substructure of new laws and bills. Technology plays a big role in administration instantaneously.The introductions of technologies make an impact on American politics. With Facebook, twitter, YouTube, media radicals atomic number 18 p place major roles in the election of candidates and our presidents. There is a GOP internet forum FreeRepublic and MoveOn that are political communities (Davy, 2010). Marriage and FamilyThat family is so significant to humanity that it is universal-every human group in the world organizes its members in families. Western civilization regards family as husband, wife, and children, other groups of family are polygamist. Marriage is a groups approved mating arrangements, usually marked by a ritual of some sort and now nuptials i n no only man and woman but now at that place is approved same-sex marriages (Hensil, 2010) I think that marriage and family a devil very important things in life that keep a levelheaded relationship in someones life.Now and days I just see so many people just laying down and making babies instead of having values and morals with being unite before the kids come. I cant say all marriages go away blend in because I was married at 20 and we did not decease very long at all. Marriage and family can impact economic science and community because people who are married tend to be die onward than single and cohabiting parents (Kaye, Lerman, (n.d.)). In recent years technology can destroy a marriage and family because of these social websites. Then with economically there are so many layoffs and few jobs that it too has made an impact on families and a loss of a job and pull a marriage apart because of financial issues. educational activityMany Jobs require you to have the skills before you are allowed to work. Just like Doctors display their credentials (Henslin, 2010). Education helps us students in seeking higher(prenominal) positions and employment. I believe that we are begetting educated from the time that we are born until the time we are no longer able to comprehend new information. We have to get an education to get better jobs if we would like to make good money in a failing economy. For me I got tired of living off of tips or from pay check to paycheck because the cost of living has move and to survive you need to get an education to get a higher paying position. There are advantages in education it economically stables a country.There are competitive advantages over other economies. Employers want workers who are more productive and who will require less management (Radcliffe, 2012). The advances in technology are so far advanced that children and adults are being educated through various apps, websites, and cyber classrooms. It also changes th e productivity in an industrialised world. Increased productivity means increased revenue.* Module 7 is targeting the proficient impact on all pillars. Be sure to complete the last column during Module 7 before you submit the assignment tothe instructor. For the impact of technology column, please explain how technology has impacted each of the iv pillars on the matrix.ReferencesHenslin, J. (2011). Essentials of Sociology A Down To Earth Approach. Boston, MA Allyn & Bacon Davy, Steven. (2010). How Technology Changed American Politics in the Internet Age. Retrieved June 20, 2013 from http//www.pbs.org/mediashift/2010/04/how-technology-changed-american-politics-in-the-internet-age096 Kaye, K., & Lerman, R. (n.d.) Effects of Marriage on Family economical Well-Being. Retrieved June 20, 2013 fromhttp//aspe.hhs.gov/hsp/marriage-well-being03/summary.htm Radcliffe, B. (2012). How Education and training Affect Economy. Retrieved June 20, 2013 from http//www.investopedia.com/articles/econ omics/09/education-training-advantages.asp

Bshs/382 Research and Statistics Dq’s

hebdomad 1 DQ 1 1. Voluntary consent of the participant is absolutely essential. The caseful area must be capable of braggart(a) consent with discover coercion, and full responsibility for arrive ating consent rests with the forefront investigator. 2. The audition must be designed to bring forth results that go out benefit society and that shtup non be obtained in any other manner. 3. kind-hearted experimentation should be based on animal inquiry results as well as knowledge of the natural course of steadyts, disease, or problems. 4. twain unnecessary mental or physical detriment should be avoided. 5. When on that fleck is reason to believe that death or disabling injury may occur, no experiment should be carryed except, perhaps, when the experimenting physicians alike serve as subjects. 6. The floor of risk should never exceed the homophileitarian importance of the problem to be solved. 7. All vigilance should be taken to protect subjects from even external po ssibilities of injury or death. 8. Only qualified personnel should be allowed to conduct experiments.The principal investigator must be ready to terminate the experiment at any stage if it appears that injury or death go forth result. Research Techniques for the Health Sciences, Fourth Edition Chapter 4 Considering Ethics in Research Explain two basic principles for humane treatment of human subjects in look into. Drawing on the course readings or a catamenia take careersign item, go forth an pattern of a study in which good principles were not followed. How might study design have been improved in that case?The two basic principles for human treatment of human subjects in look into close signifi fuckingt to me are, making sure all precaution is taken to protect subjects from even remote possibilities of injury or death, and allowing the subject to withdraw from the experiment at any magazine if a point is reached that may bring more or less physical or mental harm. It is great that we do not use humans in research as crash dummies, as if they are simply replaceable after harm and injury.It is only right to take all precautions and allow the human subject to change their mind about participating in the research. Ethical principles were not followed in the Tuskegee Syphilis Study found in our text. The human subjects were not fully aware of the study, and the purpose of the research was more so the subjects could hold out and they could coiffe an autopsy. calendar week 1 DQ 2 What are the advantages of victimization a immix ordering attempt to research? What are the challenges? Provide an fashion model of how you have used (or, in the future, could use) this approach in your professional role.The loudness of the research 2) Use of multiple modes in a research helps to research a outgrowth or a problem from all sides 3) physical exertion of different approaches helps to focus on a single process and con unfluctuatings the info accuracy. A mixed research complements a result from ace event of research with another peerless. This research does not miss any on tap(predicate) data. The aim of a mixed method design is to tote up validating aspects of two approaches and produce a highly accurate data.When you use some(prenominal) methods in your research process, therefore you can use the faculty of all(prenominal) type of information collection and minimize the weak points of every of both approaches. A mixed method approach of gathering and evaluation can growing the validity and accuracy of the information. The advantages of using a mixed method approach to research are having several different outcomes in the process of your research. What this does is allows the researcher to use the strengths from the information pile up and minimize the weaknesses from the information collected. employ a mixed method approach can ultimately increase the accuracy and validity of the information. The challenges of using a mixed method approach will be that the age of researching will be extended. Extending the time of research could definitely be a challenge if there is a time frame to find results in. Depending on the purpose of the research, using a mixed method approach can be a waist of time. An caseful of using the mixed method approach was when I wanted to search (qualitative objective) why people shop on-line.I conducted open-ended querys (qualitative data collection) intercommunicate people why they shop on-line, and then I quantified the results by ascertain the number of times each type of response occurred (quantitative data analysis). hebdomad 2 DQ 1 What is the difference between reli qualification and validity? envisage that you are going to give a new instrument for research in your field, using course readings, turn in specific morals of how you might go about establishing its reliability and validity. (Make sure to cover at least one approach for determining reliability a nd one for determining validity. Reliability is, roughly, whether you could duplicate an experiment and stimulate comparable results either because an individuals responses are consistent (for example, their reply times in a outpouring are consistent when the try is carried out again), or the oecumenical overall results are consistent (for example, the median(a) score on a test is the said(prenominal) or identical when carried out again on a comparable group) Validity is whether the stimulate you are using really throwaways what you are using it to measure.For example, if you devised a test to measure peoples self-esteem, does it really measure self-esteem, or something similar such as extraversion? Reliability refers to the ability to perform the same experiment and make out the same results. Validity refers to the accuracy of those results. You could perform the same experiment many a(prenominal) times and get the same results, but they may not be correct (if the exp eriment is flawed for example). This would be reliable, but not valid. Conversely, you could perform an experiment that yields accurate results once, but not when it is repeated.This would be accurate (one time anyway), but not reliable. Reliability is the consistency of the degree to which an instrument measures the same way each time it is used under the same modify with the same subjects in short, it is replicating an experiment and getting comparable results. For example, a punt test measuring reply time showing the same reaction times as the first test. Reliability is all about the ability to perform the same experiment and get the same results. Validity is whether the puddle you are using really measures what you are using it to measure.It is essentially the strength of our conclusions, inferences or propositions. For example, a test measuring peoples confidence, does it really measure confidence, or something similar such as faith in something? Week 2 DQ 2 What are some o f the advantages and disadvantages of travel along research? Provide an example of survey research findings that were recently published in the news. First, briefly summarize the study design and findings. Second, based on what we have read about survey research, provide critical feedback on this studys design or explain what additional information you would need to make a critical legal opinion of this study.Strengths 9. Surveys are relatively inexpensive (especially self-administered surveys). 10. Surveys are useful in describing the characteristics of a self-aggrandizing population. No other method of remark can provide this general capability. 11. They can be administered from remote locations using mail, email or telephone. 12. Consequently, very large ideals are feasible, making the results statistically significant even when analyzing multiple variables. 13. some questions can be asked about a attached topic giving considerable flexibility to the analysis. 14.There is flexibilty at the human race phase in deciding how the questions will be administered as opposite interviews, by telephone, as group administered written or oral survey, or by electonic means. 15. Standardized questions make measurement more precise by enforcing uniform definitions upon the participants. 16. Standardization ensures that similar data can be collected from groups then interpreted comparatively (between-group study). 17. Usually, high reliability is easy to obtainby presenting all subjects with a standardized stimulus, observer subjectivity is greatly eliminated.Weaknesses * A methodology relying on standardization forces the researcher to develop questions general enough to be minimally appropriate for all respondents, possibly missing what is most appropriate to many respondents. * Surveys are inflexible in that they contend the initial study design (the tool and administration of the tool) to remain unvaried throughout the data collection. * The researcher must ensure that a large number of the selected sample will reply. * It may be hard for participants to repudiate information or to name the truth about a polemic question. As opposed to direct observation, survey research (excluding some interview approaches) can seldom deal with context. Advantages of survey research could be court efficiency since surveys are relatively inexpensive. Surveys are useful in describing the characteristics of a large population and not a lot of other methods of observation can provide this general capability. They can be administered from distant locations. Many questions can be asked about a given topic giving flexibility to the analysis. Disadvantages of survey research could be researchers creation forced to develop general questions.Surveys are inflexible because they remain unchanged throughout the data collection. Also, with surveys the researcher must ensure that a large number of the selected sample will reply, otherwise the survey would not be sufficient. In the news there was a survey about homelessness in Santa Cruz County. A count and survey conducted by the United Way of Santa Cruz County and the nonprofit research firm Applied Survey Research, and it showed that the homeless population in Santa Cruz County has jumped 22 percent in two years. The survey design was cross-sectional. It asked several questions at one oint in time. The survey collected age, gender, race, and reason for be homeless. http//www. santacruzsentinel. com/opinion/ci_18565125 http//www. phc-santacruz. org/_pdfs/2011%20Santa%20Cruz%20Homeless%20Report%20-%20FINAL. pdf Week 3 DQ 1 How can you avoid crook when selecting samples for human go research? Imagine that you are going to design a survey that will be administered to consumers/clients in your field (e. g. , nursing home residents, young person mentors, single mothers) how would you go about sampling from this population in order to generate meaningful data?What might be some of the c hallenges in ending up with a representative sample? To avoid bias when selecting samples for human service research a different set of individuals should be chosen within the same community. Different ethnicities, different genders, equals different beliefs, backgrounds, and futures. Selecting individuals in this manner should avoid bias. Hypothetically I work for an organization that offers services to young and troubled girls, especially those who have been to juvenile hall. Schools and juvenile halls if permitted would be great places to begin my sampling.Schools and juvenile halls both have a diverse population where bias could be avoided. The bulwarks I could see myself running into would be getting the permission to survey the minors in the first place. The biggest barrier would be knowing what girls are considered troubled or not and who they are specifically to get only their feedback and not girls who are not considered troubled. Week 3 DQ 2 List different measures of va riability discussed in the readings and, using your professional field, provide an example to illustrate the concept.If you were a manager face at these measures of variability around some aspect of employee productivity, what may they tell you about an individuals or teams performance? The range is the most obvious measure of dispersion and is the difference between the lowest and highest set in a dataset. The range is based solely on the two most intense hold dears within the dataset. The range is simple to compute and is useful when you conjure to evaluate the whole of a dataset. The standard deviance indicates how tightly the values in the dataset are bunched around the mean value.The standard deviation is the most vigorous measure of variability because its measuring how every value in the dataset varies from the mean. You must be careful when calculating the standard deviation to consider whether the entire population or a sample is being examined and to use the appropria te formula. If I were a manager looking at these measures of variability around some aspect of employee productivity, the range would point out the highs and the lows of the team performance.This would allow me to know my teams strength and weakness, and then I would be able to work on ways to negligible the weaknesses in performance. Week 4 DQ 1 Based on the casebook readings, describe the third variable problem as it relates to correlation and provide an example of how you might see this played out in your give birth field. Week 4 DQ 2 How does hypothesis interrogation contribute to the scientific knowledge base? Based on the textbooks descriptions of hypothesis testing, provide an example of how you might implement this in your work. othesis is an edjucated guess an it is some times the closest we can get to the trueth of things we do not yet understand Scientists use a scientific method to investigate phenomena and acquire knowledge. They base the method on verifiable observ ation i. e. , on empirical evidence rather than on pure logic or supposition and on the principles of reasoning. 1 2 Scientists propose explanations called hypotheses for their find phenomena, and perform experiments to determine whether the results accord with (support) the hypotheses or falsify them.They also mould theories that encompass whole domains of inquiry, and which bind supported hypotheses together into logically persistent wholes. They refer to theories sometimes as models, which usually have a numerical or computational basis. 3 4 determining the focus and direction of the research, it forces researcher to area the purpose of the activity, determines what variable are being studied and or considered and also it allows to a required operational definition of the variable that are being studied. supposition testing is a must for any person to successfully test their studies and make sure there are no flaws. Hypothesis is an educated guess an it is some times the closest we can get to the truth on matters that we do not yet understand. Scientist base their method on verifiable observation rather than on logic. Hypothesis testing forces researchers to address the purpose of the activity while determining what variables need to be studied and also requires operational definition.

Identity in “the Autobiography of an Ex-Colored Man”

Identity in The story of an ex-colored man The Autobiography of an ex-colored man is a fiction novel dealing with acceptance and adaption in. The narrator of the story, who is considered both obscure and ovalbumin, is struggling in his quest to think his true identity. The book is tragic and ironic in a way, since the main character spends a huge part of his life pretending to be fair, while the causality, James Johnson, is an active fighter for the rights of colored people.The novel itself is cardinal of the first texts ever written, showing the difficulties which people of colour were facing. The hero goes gumption and forth while exploring the world and his roots. That is wherefore, probably seeking redemption, he goes nates to his childhood c one timeive of of becoming a great man of colour. private history and childhood is always in the bottom of people and their behavior. This is why agreement the narrators childhood and his dream is important for understanding hi s identity.In the beginning of the book the author describes sheenys great vernacular and how this triggered his dream of becoming a great saturnine man. The petty(a) sons triumph seems to inspire the narrators dream, provided the afterwards description of the phenomenon of enthusiasm which comes after Shinys triumph, and every opposite Negro, who has reached Excellency, suggests that a man of colour can never achieve a true victory. It seems like the author suggests that Shiny is not in reality applauded because of his speech, but rather because of his skin colour and the fact that white people yield less from him.Aware of that, the narrator believes that whatever he achieves in his life, every rescind and fall, will be judged by aslope eyes and that is probably why he ultimately does not choose to follow his childhood dream of becoming a composer The author describes the little black boy in great details. In the authors opinion, Shiny made a striking delineation, which implies that the boy looks ridiculous on the stage.To complete the picture of the boy, the narrator explains how his clothes didnt fit him too well, which provokes the endorsers sym agencyy, because of the fact that he is trying to farm how he is much than what he looks like. The ex- drab man also describes Shinys looks as positively handsome, which implies a surprise that someone that black can actually look handsome. The way in which the boy is described, reveals the hidden bias against the coloured people in the whole novel. The public is escribed as dominantly white with an excommunication of a score or so that was lost to view. In a real situation, coloured people would be easily distinguishable among the white ones. Thus, I believe that the author is trying to highlight how little computer backup Shiny has and how helpless is he feeling. The narrator doesnt know what the little black boy is feeling up on the stage, but he makes many assumptions. We can assume that those assumptions are what the narrator would have mat up if he was up there himself.Shiny is also compared with a gladiator tossed into an demesne. This leaves the impression that he has no other option, but to fight and prove him, which shows how man of colour were never judged equally, but rather seen through the coloured eyes. By the end, the author says How so young an orator could name so great enthusiasm was to be wondered. Here he at last admits for the first time that not the appearance, but the abilities and great speech of Shiny has won the applauses.The word wondered appears to be some kind of skepticism, and later the author explains in the next paragraph that people are always ablaze by the same emotions and the same phenomenon of enthusiasm follows any black mans success. This once again underestimates Shinys success. The author hints that his abilities have nothing to do with his successful speech, because after all Shiny is what is common in his race, a natural orat or. The author also paints the picture of how the boy gallantly waging with puny, black arms so unequal managed to touch the deep springs in the hearts of his audience.The perceived weakness of the African-American people is notably reconcile in the description of the scene, and it provokes deep sympathy in the readers. This particular shop of the narrator is crucial for understanding his motives. It may seem like he is running away from his race and living the life of a white man because it is easier, but considering the fact that he observes this scene through his coloured eyes, we can assume that this is probably in the bottom of his last not to pursue his dream and to end up choosing the easy path of life.

Corporate Strategy Essay

In Corporate Strategy, Collis and Montgomery explain there atomic number 18 two kinds of diversificationlinked and constrained. Companies using linked diversification insert new businesses when it relates in some way to a nonher business they ar already in (it is linked to it), but does not necessarily go for any connection to their other businesses. If they ar using constrained diversification, however, they except enter a new business if it is based on their lens nucleus resources or competencies. Companies based on linked diversification have exact coherence to their overall corporate strategy, while companies using constrained diversification tend to be more than center. Constrained diversification allows companies to maximize the progeny of their resources because they are shared (100).Apple uses constrained diversification. Apple is, inherently, a ain computer company (hardware and software), and their businesses utilize their competencies in developing hardware an d software. The Macintosh, iPad, iPhone, iPod and AppleTV are all computers, which allows Apple to share resources between businesses. For example, the Macintosh, iPad, iPhone and AppleTV all run OS X, Apples operating system. This creates economies of scope, which, Collis and Montgomery point out, create comprise savings for the company because their resources are shared across multiple businesses (72). earlier than just have related businesses, though, individually business is a focused platform with no extraneous products or product types. The Macintosh, for example, consists of two kinds background knowledge and notebook. These separate product lines each share resources and complement each other. The iMac and MacBook master are both primarily constructed from aluminum and glass, so not alone do they share the same materials (which reduces costs), but they resemble each other, creating haleness between product lines.Each platform, too, complements the other. Apples Macintos h computers sethronize their media and personal data (calendar, contacts, email) seamlessly with the other platforms. Because they work so well together, owning products from each platform benefits users by creating an experience where their devices just work.The platform advantage does not apply just to Apples devices. Through iTunes, users erect purchase music, movies and television shows that syncs across all of their devices, or even do so from their iPhone or iPad. The App Store allows users to download applications for their iPhones and iPads wherever they are, and now the iBook Store, released in April, get out allow them to do the same with books.Because Apple has chosen what businesses to enter carefully, these platforms fortify the others and make them more powerful. The sum is greater than the parts. This creates a complete software product for consumers to choose, and it is difficult for competitors to match. Their platform strategy makes each individual business more valuable than it would be as a separate entity.Their strategy can be improved, however. Currently, MobileMea dish up Apple offers that keeps contacts, calendar, and email in sync across multiple devices over the airis a premium service that costs $99 per year. This is the wrong approach. Rather than a premium service, MobileMe should be free and integrated into Apples platforms. MobileMe should act like the gingiva that integrates the platforms and as a draw for users. Apples goal should be to get as many MobileMe users as possible. Once someone is happily using MobileMe across their various devices, they are less likely to shake off to a competitors product.

Financial Analysis on Aftab Auto Essay

Chapter 1 grounding & method actingology1 IntroductionAftab automobiles special(a) has been our selected caller, which is unmatched of the largest automobile assembling plants in the private sphere in Bangladesh. Aftab railway carmobiles Ltd. is in this business since 1967. In 1981 the club registered itself as a Public Limited spirited society. The Company was listed with Dhaka striving Ex change over Limited and Chittagong tenor Exchange Limited in the division 1987 and 1996 respectively. The principal activities of the Company by come let on the tip were assembling of Toyota Land Cruiser soft vertex/ Pick-up, Land Cruiser Prado, Hino Bus, Hino Mini Bus / Truck Chassis with a production Capacity of 2400 units of vehicles in 3 shifts in Assembling Unit. solely since inception, the Plant is running single shift considering the merchandise demand. The Company has added four some units namely Body Building Unit, Paint Unit, Battery Unit & piece of furniture Unit and the commercial production of which started in May 5, 1997, November 01, 1999, January 03, 2002 and May 01, 2002 respectively.Overall, it is a keep attach to with vision of maximizing portion outholders wealth and its investors push away already shown their pledge in the caller-up. Its sh atomic number 18 worth has change magnitude oer the course of studys equated to its watchword honor. Further more, it enjoys a demonstrable signaling effect from the commercialiseplace and there is devoutly tenders for Aftab auto. In this report, we institute try to shape out some reasons behind the fountainhead be choosed news and the demonstrable signaling effect.The main corpo symmetryn that we ar performing m 1tary outline is on Aftab Motors LTD. Since our major accent is to similarn twain companies monetary performances over measure, so we afford selected telamon Bangladesh LTD as the rival caller-up of Aftab Motors LTD. According to the pouch instructi on, we aimed towards remnantnalizing expect harm by style of with(predicate) financial assertion analytic thinking, and in doing so we have seriously dealt with the halt jimmy and mart place care for of personas. By study the book judge and the trade entertain ofAftab Motors LTD from the course of instruction 2005-2009, we found out pursuance cultivation2 Objectives Making a thorough analysis of the f pasturernitys financial controls over the stick out 5 eld through dimension analysis, computer memorys f crushed analysis and analysis of major comp mavennts of the proportion sheet and trying to identify the actual state of the ships caller since its hindrance in Dhaka origination Exchange (DSE). Find out the diversity among book abide by and market entertain of the component equipment casualty and to identify the possible reasons behind this difference, and nonplus if there is any peculiar(prenominal) hidden discrepancy in the existing financ ial statements of the company. Find out the ariseing to make the Pro Forma Statements (The Income Statement and the proportionateness rag) and thus augur the emersion potentials of Aftab political machinemobiles Ltd along with the stated out the results yielding out later on the 5 category long barrier come acrossion (long term accumulative process)., as healthy as projection of impart equipment casualty through financial analysis. To compare the wets financial status with cardinal of its rival warm (map solicitation Auto) through proportionality analysis with the justification of fit between the market charge and book nurture of the donations.3 MethodologyInformation SourceThis study is found on the secondary financial data which is published in gradely reports and monthly reviews of Dhaka contain Exchange Ltd. by the respective companies. We have obtained the necessary information from the DSE (Dhaka Stock Exchange LTD), Motijjhil, Dhaka, and from the an nual report of the company.Data Processing and digestWe have careful different balance enforce quotationd data from DSE, and showed the simile between the two companies performances over the persist five eld. present the positions of companies were compared to their previous years performance and beca intent the analysis has been done between those companies accepted years mail services.Period of DataWe have use data of five square(a) old age from 2005, 2006, 2007, 2008, 2009.Statistical TechniquesWe basically apply two different statistical techniques. First we employ the judgment of conviction serial publication method for dimension analysis and so cross- character(prenominal)al method for showing the comparison between Aftab Motors LTD and book of maps Bangladesh LTD. There is besides check of tables and charts to specifically present the data with comments. We also did the degeneration analysis victimisation the Microsoft Excel.Standard of ComparisonA s we get that there are fewer competitors for Aftab Motors LTD in Bangladesh. Among them, we proposed that book of maps Bangladesh LTD is one of the most challenging one for Aftab Motors in outlay of market donation and fiscal performance over time.4 Limitations of the Study Due to different month of year finale date comparison whitethorn non be accu dictate. We set about line of work while breaking down the actual balance sheet and choose out the adjustments. Due to time constraints we could not visit the premise of Aftab Auto toincorpo calculate more recent information and views of the Top circumspection near the performance & position of the company. An early(a) limitation was fetch outing the industry honests for the ratio analysis. No such(prenominal) data are readily getable in context of Bangladesh. So, instead of the industry average data we have to take the best available rival data. likewise we had some problem discovering what go away be the future in vestment of the company. We had to depend on the secondary source for that. We did not find exact unit hurt of companys products as it was not clearly mentioned in their annual report. Also the companys official website is not in truth informative and organized through which we could collect the information about the company. Lack of technical k presentlyledge-how in high(prenominal)-level statistical techniques. Moreover, time constrains and other factors deterred us to anticipate highest concentration that we could have give to prepare this report.Chapter 2 compend & Interpretation2.1 Revised Balance Sheet based on market place apprise of Share foodstuff honour & earmark mark of Aftab Auto LtdFrom the Annual Report of the Aftab Automobiles ltd we compute the tidings Vale of their constituent from 2005 to 2009. similarly that we also collected the securities industry valuate of the percentage from the library of the DSE (Dhaka Stock Exchange). The fol down(p)ing Gra ph shows the Market Value and the Book Value per region of our proposed company.Figure-1 Market & Book Value of Aftab Ltd. From 2005 to 2009From the to a high place graph we natter that in year 2005, 2008 and 2009 the market bell is higher(prenominal) whence(prenominal) the book value, which is really good news for us. exactly if in 2006 and 2007 the market bell is below then the market wrong, which indicates that the investors chthonicestimated the companys wealth. But as our last year in 2009, so our analysis ordain be based on year 2009.In year 2009, we found that the Market Value is far more then the Book value which is Taka 1,530 and taka 390.38248 respectably. This figure indicates that the investors are go forthing to wear more for per share for the company then the book value shows because the investors whitethorn think that the company may underestimated the companys wealth. So we constructed a new Balance Sheet compared with the stream year (2009) Balance Sh eet based on the Market Value of the corporation.Revised Balance Sheet base on the Market Value in 2009Aftab Automobiles Ltd Balance Sheet 2009 Based on Book Value Based on Market Increase / fuddle-off Value assets veritable pluss Stock And Stores ( memorandum) number Stock & Stores 737,517,274 1,281,969,612 544,452,338 sum total Accounts receivable 993,547,199 993,547,199 Income impose Deducted at Source 93,002,081 93,002,081 Advance, Deposits & Pre supportments 149,320,158 149,320,158 bullion & Bank Balances 27,881,100 27,881,100 organic Current assets 2,001,267,812 2,545,720,150 544,452,338 Non-Current pluss Property, Plant & Equipment Land 58,959,642.00 58,959,642 648,556,062 589,596,420 Building 169,846,130.00 142,270,645 213,405,968 71,135,323 Shades 2,682,800.00 little roll up 1,529,591.00 wear and tear cashbox 2008 Tools & Equipment 45,965,960.00 Less Ac cumulated 17,743,259.00 Depreciation till 2008 Office Equipment 31,021,242.00 Less Accumulated 7,323,987.00 Depreciation till 2008 Furniture & Fixture 16,953,271.00 Less Accumulated 2,973,873.00 Depreciation till 2008 Less Accumulated 26,595,111.00 Depreciation till 2008 enthronization (4109300 Share Of Navana CNG) 33,961,309 796,793,270 762,831,961 intangible assets 1,263,853,978 1,263,853,978 entireness Assets 2,438,883,896 5,744,380,219 3,305,496,323 Liabilities & Owners lawfulness Current Liabilities Short enclosure Loan 229,914,219 229,914,219 Total Accrued & Other Current Liabilities 1,275,342,755 1,263,853,978 (11,488,777) Dividend Payable for taste perception Share 1,179,500 1,179,500 Total Current Liabilities 1,506,436,474 1,494,947,697 (11,488,777) Non-Current Liabilities Loan & Deferred Liabilities 17,100,000 17,100,000 Preference Share chap iter including Premium 9,827,929 9,827,929 Total Liabilities 1,533,364,403 1,521,875,626 (11,488,777) honor Attri exactlyable to paleness Holders Paid up Share peachy (Ordinary Shares 2319570 Shares) 231,957,000 3,548,942,100 3,316,985,100 Share Premium 250,191,730 250,191,730 Reserve 107,100,735 107,100,735 Retained dough 316,270,028 316,270,028 Total Assets & Liabilities 2,438,883,896 5,744,380,219 3,305,496,323 Justifications1. Stock & Stores The investors may think that the company underestimatesthe hurt of the undone goods. As the company use to measure the finished goods based on the terms of Production nates. But the original market cost is higher then the value written in the Annual Report. Also the market price of the Raw Materials, Store & Spares, Goods in Transit, L/C bank, Work-In-Process is underestimated. So in Revised Balance Sheet we increase the value of the Stock & Stores.2. Land The Land value is underestimated a s we k in a flash that the land value is reckon as per the corrupt price, not as per the market value. We know that the value of the land always increases. So we increase the value of the land.3. Buildings The value of the Building is calculated as per the establishment cost and the period value is calculated by deducting depreciation. So in this fiber the investors may find the Market value of the Building is more then the value apply in the annual report. The investors may find the Building in collapse terminal figure and able to offer the higher price than the value calculated in the balance sheet. So we also increase the value.4. Plant & Machinery, Tools & Equipment, and charm Vehicle As all of these items value is written on the basis of the purchase price and also by deducting the accumulated depreciation. So the investors may find these items in better condition and also think that the market price is higher than the written in Balance sheet.5. investing This Company purchased 4,109,300 pcs of share from Navana CNG Ltd. The value written on the Balance Sheet is from the purchased price. But the Current market price of this share is taka 193.90. So we also change magnitude the value of the investment by using the market value of the linage.6. Intangible Assets The market price of the share is increased. This value increased may be the reason is the value change magnitude of the companys intangible assets the like Patent, Trademark etc.7. Goods Supplied Account We are decreasing this account on the basis is that, the company may get some purchase disregard from the vendors. So the value of the accounts receivable is decreasing.Overall CommentsIn year 2009, we analyse that the Market price is oft times higher then the Book Value of each share. Investors are get outing to pay more than the book value of each share. The major reasons of the higher market value are the underestimation of the assets, as the assets are calculated based on the purchase price not on the basis of the market price. wastedively that investment to the other shares are also calculated on the purchase price. But the market price is also higher. Moreover, Aftab Automobiles ltd enjoys a better spirit on the market. So the Intangible assets like, Patent, Trade mark should be considered. So we deal nar regularize that the companys financial position is good.2.1 bullion Flow abbreviation cash in flows are the cash receipts and the cash disbursement of the company. Since currency does not flow in and out at an equal rate, so in most of the businesses, an analysis of cash flow is important. In our case we are working with the coin Flow Statement of Aftab Automobiles Ltd from the year 2005 to 2009. aft(prenominal) analyzing the statements we digest have an idea of the cash dealing of the company of the old age under our study.Sources 2005 2006 2007 2008 2009 EBIT 55,369,060 61,681,543 43,530,063 79,204,842 125,312,761 Depreci ation 26,964,852 26,964,85226,964,852 26,964,852 26,964,852 Tax-7,179,527 -14,602,650 -13,059,019 -21,781,331 -51,261,009 direct cash Flow 75,154,385 74,043,745 57,435,896 84,388,363 101,016,604 detonating device Spending Ending realize intractable Investment 30,149,974 26,582,937 23,015,900 Less ancestor placed Investment -30,531,889 -30,531,889 -23,666,305 -23,666,305 Deprecation 26,964,852 26,964,852 26,964,852 26,964,852 force out obdurate Investment 26,582,937 23,015,900 26,314,447 29,612,994 Changes In last-place working Capital Ending terminate Working Capital 425,800,770 260,925,322 298,947,675 905,519,493 Less Beginning Net Working Capital 171,666,619 425,800,770 260,925,322 620,450,571 Changes In Net Working Capital 254,134,151 -164,875,448 38,022,353 285,068,922 Free cash in Flow from Assets Operating Cash Flow 75,154,385 74,043,745 57,435,896 84,388,363 101,016,604 Net Fixed Investment -26,582,937 -23 ,015,900 -26,314,447 -29,612,994 Changes In Net Working Capital -54,134,151-164,875,448 -38,022,353 -285,068,922 Free Cash Flow -6,673,343 -130,455,452 20,051,563 -213,665,312 Cash Flow from/to Creditors refer Paid 34,992,217 44,619,538 48,012,628 54,362,263 90,846,346 Less New Long Term Borrowing 17,100,000 17,100,000 17,100,000 117,100,000 26,927,929 Cash Flow From Creditors 17,892,217 27,519,538 30,912,628 -62,737,737 63,918,417 Cash Flow From Investors Dividend Paid 24,000,000 12,000,000 12,000,000 12,000,000 1,179,500 New Equity 439,792,483 701,016,976 685,748,820 621,050,571 905,519,493 Cash Flow To Investors 463,792,483 713,016,976 697,748,820 633,050,571 906,698,993 As we can look out from the cash flow statement that, in 2006, 2007 & 2009 the free cash flow figures are negative. This might drop dead because of high investment in scrutinize and R&D departments, means the company used more cash than they had sourced of. Also the cash flows to Investors were competent for the company over the old age. The company had sufficient fund to pay out dividends and that would eventually maximize the value of the firm. Fixed investments were ordered and consumed colossal cash over the years.Overall we shoot the breeze that the gross revenue of the company are increase which is a good sign. Besides that the company is investing heavily on the fixed assets,which may used to consecrate more revenue for the company. They are also offering cash dividend each year and also the company paid its unawares term load and also taking short term loans, which indicates that the company is enjoying a favorable environment in terms of the short term deferred payment situation. So, we can close that the Aftab Automobiles Ltd is financially arduous based on the Cash Flow analysis. ratio analysis and InterpretationsTo guess a firms financial condition and performance, the financial psychopsychoanalyst usually performs analyses on confu sed aspects to find out the financial swell upness of the firm among which ratio analysis is one of the most important and unremarkably used methods. balance analysis is a in additionl frequently used during the analysis to relate two pieces of financial data by dividing one quality by the other. In this study various ratio analyses will be done to understand the financial condition of the company and to compare this condition with its rival firm to get a clear picture. The analysis of financial ratios involves two types of comparison cartridge holderSeries compendium First, the analyst compares a present ratio with past and expected future ratios for the real(prenominal) company. The topical ratio (the ratio of received assets to watercourse liabilities) for the present year could be compared with the flow rate ratio for the previous year-end. When financial ratios are put over a period of years, the analyst can study the news report of change and determine whether th ere has been an improvement or deterioration in the firms financial condition and performance over time. hither we will conduct time series only on the Aftab Auto Ltd. cross section compend The second method of comparison involves comparing the ratios of one with those of similar firms or with industry averages at the same point in time. Such a comparison gives insight into the relative financial condition and performance of the firm. It also helps us identify any significant dispute from any applicable industry average (or standard).Here we will plow and calculate different types of ratios. Then we willcompare the ratios between Aftab Auto Ltd. and map collection Auto Ltd. The reason for doing this is that the industry average is not available in perspective of Bangladesh. runniness Condition abridgment ratios that show the consanguinity of a firms cash and other current assets to its current liabilities are known as liquidity ratios. Different types of liquidity ratios are d iscussed below.Current proportionThe ratio that relates current assets to current liabilities is the current ratio. The current ratio indicates the capacity of a company to pay its current liabilities from current assets and shows the strength of the companys working nifty position.picsFigure-1 The Current balances of Aftab and atlas for the years 2005-2009Time Series analytic thinking Current ratio for Aftab is higher than 1 and it is consistent for all five years. In 2006 it has increased a hardening from the previous year tho in 2007 it dropped for two consecutive years entirely again in 2009 it has increased again and is in a good passable condition. crosswise analysis However, comparing to the ratios of telamon, we see significant difference the two companies ratios. Aftabs ratios seem to be much weaker than Atlass. None of the years it has made the benchmark of 2. However, the last 3 years results are not satisfactory at all because no(prenominal) of them is showin g benchmark of 2 or the increase manner. So, we can desist that Aftab is showing forgetful trim back in its quick ratio.Quick symmetryInventories typically are the least liquid of a firms current assets they are the assets on which losses are most seeming to occur in the event of liquidation. Therefore, it is important to measure the firms ability to pay off short term obligations without having to rely on the sale of inventories. This is why quick ratio is used.picFigure-2 The Quick ratios of Aftab and Atlas for the years 2005-2009Time Series abbreviation Quick ratio of Aftab is less than 1 which means it has piled up inventories as its current assets. The abridge of quick ratio of Aftab shows that the ratio had been increasing from 2005 to 2006 but then suddenly drop off importantly in year 2007 and 2008. Then it has increased in 2009. So, we can cerebrate that Aftab is showing low quick ration but increasing snub in its quick ratio.Cross-Section digest Comparing with Atlas, Aftab has a very poor quick ratio even though it has increased but its running with risky conditions in terms its quick ratio.Cash RatioIt is another measure of liquidity of the firm. It shows cash solvency of the firm.Figur-3 The Cash Ratios of Aftab and Atlas for the years 2005-2009Time Series compend Aftabs cash ratio has seen a move matter. The ratio is very low. Even though the ratio meliorate in 2008 than previous year, the ratio is significantly cut down. Too much inventory pile up and poor credit collection policy may led to such deteriorating abridge in cash ratios.Cross-Section Analysis Comparing with Aftab, Atlas has a very high cash ratio which indicates Atals has a better credit collection policy and sinkpiled up inventories.Asset-Management Efficiency AnalysisA set of ratios that measure how effectively a firm manages its assets compared to its gross revenue. These ratios are designed to find out whether the total measuring rod of each type of asset a s reported on the balance sheet appear reasonable, too high, or too low considering current and project sales levels. Asset Management Ratio is done based on inventory disturbance rate ratio, solar days sales striking and fixed asset and total asset turnover ratioTotal Asset disturbanceThe total asset turnover ratio is calculated by dividing sale by total assets. The total assets turnover ratio measures the turnover of all the firms assets.picFigure-4 The Total Asset Turnover Ratios of Aftab and Atlas for the years 2005-2009Time Series Analysis Total turnover of Aftab is not very satisfactory which means its not generating enough revenue by using its total assets which indicates it may some inefficient assets in its seam which deteriorating the total revenue. Its in decreasing issue till 2007 but afterwards that it as an increasing trend which is a very good sign in fact.Cross-Section Analysis Atlas has a very high asset turnover ratios which indicates its assets efficient e nough to generate more revenues and its in increasing trend for both the firm.Fixed Asset TurnoverThe fixed asset turnover ratio is calculated by dividing sale by total fixedassets. The total fixed assets turnover ratio measures the turnover of all the firms fixed assets.picFigure-5 Fixed Asset Turnover Ratios of Aftab and Atlas for the years 2005-2009Time Series Analysis Fixed Asset Turnover of Aftab is very low and its in decreasing trend which indicates that it has very inefficient fixed assets in its stock to generate enough sales. . It means it is suitable more efficient to utilize its short term assets to generate sales and even though its fixed asset is generating more sales than does the short term assetsCross-Section Analysis in terms of Fixed Assets Turnover Atlas has a very high fixed asset turnover ratio compare to Aftab which indicates Atlas is doing well in terms of using its fixed assets and generating revenue.Inventory TurnoverThis ratio indicates how active the com pany has been. It talks about the capacity as well as the management of the company. This ratio indicates the number of times in a trading year a firm sells the value of its stocks.picFigure-6 Inventory Turnover Ratios of Aftab and Atlas for the years 2005-2009Time Series Analysis Inventory Turnover of Aftab is very low but its in increasing trend till 2006 then there was a drop in 2007 after that it increased in 20008 then again it increased in 2009. So tells us that its inventory turnover is fluctuating and it doesnt have efficient inventory to generate sales properly. This means Aftab was miserable from poor inventory management which is also evident from the balance sheet. But, of late it improving and overcoming the situation which is a good recitation.Cross-Section Analysis comparing with Atlas Aftab has a very low inventory turnover ratio whereas Atlass inventory turnover is very high which indicates that Atlas is efficient in managing its inventory. But Atlass inventory turnover has a decreasing trend whereas as Aftabs is in increasing trendDays Sales heavy(p) (DSO)DSO indicates the average length of time it takes the firm to collect its credit sales. It is also called the average collection period, is used to evaluate the firms ability to collect its credit sales in a timely manner.picFigure-7 DSO of Aftab and Atlas for the years 2005-2009Time Series Analysis From the graph its been seen that initially low but then there were increasing trend in DSO but after 2007 its again starts to decrease which us a good sign that indicates thats they are being more efficient in collecting its receivables.Cross-Section Analysis Comparing with Aftab, Atlas has a very low collection period which means Atlas take less time to collect its receivable. Debt-Management Efficiency AnalysisThis ratio measures how effectively a firm is managing its debts. Debt Management ratios include analysis of two types of ratio debt ratio and times worry earned ratio.Debt to Asse t RatioIt measures the percentage of the firms assets financed by creditors.picFigure-8 Debt Ratios of Aftab and Atlas for the years 2005-2009Time Series Analysis Debt ratio of Aftab is fluctuating trend. It has high debt ratios which indicate that they a high leveraged firm and since liaison on debt enjoy tax advantage, this is evident in the gradual increment in EPS figures. This is good news for the investors.Cross-Section Analysis Comparing with Aftab, Atlas has a very low debt ratio which indicates they have a long-term solvency and low risk but at the same time they dont have much leverage power to generate more cabbage and enjoy the tax benefits.Times Interest Earned ( sleeping car) RatioThe TIE ratio measures the extent to which earnings before cheer and taxes (EBIT), also called operate income, can decline before the firm is unable to meet its annual interest cost. Failure to meet this obligation can bring good action by the firms creditor, possibly resulting in bankru ptcy. It measures the ability of the firm to meet its annual interest paymentspicFigure-09 TIE Ratios of Aftab and Atlas for the years 2005-2009Time Series Analysis TIE ratio of Aftab is very low which means it has low ability to meet its annual interest payments. Aftab is coating its interest charges by a low beach of safety. This mends the potentiality of pinnacle further debt in future.Cross-Section Analysis Compare to Atlas, Aftab has a very low TIE ratio which means Atlas has very high safety of margin to cover its interest payment. positiveness Condition AnalysisA group of ratios showing the effect of liquidity, asset management, and debt management on in operation(p) results. improvementability is the simoleons result of a number of policies and decisions. makeability ration are of trio types- Net lucre margin on sales, collapse on Asset (ROA) and retrovert on Equity (ROE).Net Profit MarginThis ratio measures how much the sales is contributing to the net profit o f the company, which belongs to the shareholders.picFigure-10 Net Profit Margin of Aftab and Atlas for the years 2005-2009Time Series Analysis Net Profit Margin of Aftab gradually decreased in the counterbalance three year then it started rising and delay to rise. This is a very good indication for the company and as well as the investors. This increasing trend in Aftabs profit margin ratio will help to entice the investors.Cross-Section Analysis from the figure we can see that initially Atlas net profit was higher than the Aftab but later on Aftabs net profit gradually increased and Atlass started to decrease. This indicates that Aftab earning more than Atlas does. The decreasing trend in Atlass profit margin ratio will not help to attract the investors.Operating Profit MarginpicFigure-11 Operating Profit Margin of Aftab and Atlas for the years 2005-2009Time Series Analysis From the graph we can see that Aftabs operating profitis in increasing trend which is a good indication of the fact that Aftab is congruous more efficient is its operation thus it has been able to dishonor the operating cost which enable for higher and increasing operating profits.Cross-Section Analysis Comparing with Atlas, Aftab is doing well in terms of making operating profit and Afatb has an increasing trend in its operating profit margin whereas Atlas has a decreasing operating profit margin. win Per Share (EPS)picFigure-12 EPS of Aftab and Atlas for the years 2005-2009Time Series Analysis EPS of Aftab has a decreasing trend for the first three years and then it followed and increasing trend and a big jump in EPS in 2009. So Aftab is earning more per share of its then it was previously earned.Cross-Section Analysis From the graph we can see that Aftab has higher EPS then Atlas. Thus Aftab will be able to attract more investors then Atlas as its earning more than Atlas for its per share. come about On AssetpicFigure-13 ROA of Aftab and Atlas for the years 2005-2009Time Series A nalysis From the table we can see that supply on total asset of Aftab is decreasing from the very start period. But from 2007 it starts increasing and its a positive factor for the company and the investors as wellCross-Section Analysis ROA ratio of Aftab is lower than Atlas all through the five years. Aftab has faced a severe descent at 2007 which may betriggered by the high interest charges on its huge amount of debt. So, it is very poor compare to Atlas but its improving for the last three years.Return on EquityROE measures the rate of return on shareowners investment.picFigure-14 ROE of Aftab and Atlas for the years 2005-2009Time Series Analysis From the table we can see that return on total legality of Aftab is decreasing from the very start period. But from 2007 it starts increasing and its a positive factor for the company and the investors as well. This improvement indicates firms improving liquidity position, efficient asset management and efficient use of high debt amo unt.Cross-Section Analysis ROE ratio of Aftab is lower than Atlas all through the five years. Aftab has faced a severe downfall at 2007 which may be triggered by the high interest charges on its huge amount of debt. So, it is very poor compare to Atlas but its improving for the last three years. Market Condition AnalysisThe market value ratios represent a group of ratios that relates the firms stock price to its earnings and book value per share. These ratios give management an indication of what investors think of the companys past performance and future prospect. If the firms liquidity, asset management, debt management, and profitability ratios are all good then market value ratios will be high which will head up to an increase in the stock price of the company. Market value ratio is of two types- scathe/ salary Ratio and Market/Book value Ratio.Market to Book RatioThe ratio of a stocks market price to its book value gives another suggestion of how investors regard the company. Companies with relatively high grade of return on equity primarily sell at higher multiples of book value than those with low returns.picFigure-15 M-B Ratio of Aftab and Atlas for the years 2005-2009Time Series Analysis It is noticeable that Aftab has an increasing trend in its M/B ratio after 2005 which is good indicator. This indicates investors are gaining confidence on Aftabs share and are now ready to pay more for Aftabs book value of its share.Cross-Section Analysis Even though there are increasing trend in the M/B ratio of Aftab it is much lower than the Atlass. It indicates that Atlas is gaining more investors trust over the years then Aftab. This justifies the high riskiness of Aftabs securities overdue to its huge debts. But its M/B is increasing which means investors are gaining the confidence which is a good indicator to compete with Atlas toll-Earnings RatioThis is the ratio of the price per share to earnings per share. It shows the dollar amount investors will pay for $1 of current earnings. It is computed by market price per share and earnings per share (EPS).picFigure-16 P/E Ratio of Aftab and Atlas for the years 2005-2009Time Series Analysis P/E ratio of Aftab was decreasing trend for the first two years then it experienced a rise in 2007 which indicates the firms high growing potential. After that it starts to decrease. This shows firms huge riskiness which we have already seen by its increasing debt financing and general poor management and other ratios. This indicates that investors are now willing to pay less for 1taka of current earnings.Cross-Section Analysis Aftab has a lower P/E ratio then Atlas but both the company has the same decreasing trend in its P/E ratio. So both the company is losing investors confidence and investors are now willing to pay less for 1taka of current earnings.Summary of all the Ratio CalculationThe reckoning of the following ratios has been done following the particular looks. In the Appendix section we have attached the calculation procedures in details.Aftab Automobiles LimitedType of Ratios 2005 2006 2007 2008 2009 fluidity Ratio Current Ratio 1.19 1.39 1.20 1.20 1.33 Quick Ratio 0.39 0.83 0.79 0.78 0.84 Cash Ratio 0.027 0.014 0.019 0.020 0.019 Asset-Management Efficiency Ratio Total Asset Turnover 1.03 0.86 0.65 0.83 0.87 Fixed Asset Turnover 5.00 5.31 2.95 4.22 4.86 Inventory Turnover 1.7 2.0 1.9 2.7 2.5 DSO 38.3 135 210 178.2 128 Debt Management Ratio Debt-Asset Ratio 68.13 61.22 66.09 72.23 62.87 Time Interest Earned 2.5 2.7 2.0 2.6 2.4 ProfitabilityRatio Net Profit Margin 3.38 3.03 2.33 3.10 14.90 Operating Profit 6.19 6.17 6.37 6.95 10.30 Earnings per Share 28.58 27.91 18.06 24.76 136.50 Return on Assets 3.5 2.6 1.5 2.6 13.0 Return on Equity 11.0 6.7 4.4 9.2 35.0 Market Ratio outlay Earning Ratio 14.8 10.9 20.3 15.8 11.6 Market/Book Ratio 1.62 0.73 0.90 1.46 4.07 Atlas Bangladesh LimitedType of Ratios 2005 2006 2007 2008 2009 Liquidity Ratio Curren t Ratio 2.46 2.45 2.55 2.12 1.86 Quick Ratio 2.07 1.82 1.86 1.33 1.11 Cash Ratio 1.08 0.77 0.94 0.55 0.40 Asset-Management Efficiency Ratio Total Asset Turnover 2.22 2.53 2.73 3.34 3.31 Fixed Asset Turnover 114.72 121.53 111.04 170.57 237.08 Inventory Turnover 11.0 12.1 10.0 10.6 9.4 DSO 4.08 6.20 2.872.16 3.32 Debt Management Ratio Debt-Asset Ratio 46.50 46.59 44.46 51.69 56.85 Time Interest Earned 1510.2 539.6 3477.4 363.4 827.3 Profitability Ratio Net Profit Margin 4.60 3.84 4.69 3.21 5.22 Operating Profit 4.73 5.93 3.95 6.94 4.73 Earnings per Share 17.33 11.97 12.63 9.69 22.39 Return on Assets 10.2 9.7 12.8 10.7 17.3 Return on Equity 19.1 18.2 23.0 22.2 40.0 Market Ratio charge Earning Ratio 19.5 16.8 24.4 37.7 21.3 Market/Book Ratio 3.72 3.06 5.62 8.37 8.54 Chapter 3Enquiry into Stock Price exertionIn this chapter we will consider only the stock price straw man of the year 2005-2009. Daily stock price is affected due to various factors that can be a macroe conomic variable as well as company specific variable. But in this section we will consider only the corporate decision factors.Variables can be some the following ones1. Dividend contract2. AGMShare Price Movement for the year of 2009Figure-17 Stock Price fluctuation of Aftab for the year 2009CommentWe can see that the price of Aftab Auto rose continuously throughout the year till the mediate of May. DSE inquiry tells us that there was no sensitive price information that was undisclosed for the price hike that we see. Then there were drop in the stock price but after that we can see a significant rise from around beginning of the September. We can only conclude that dividend result on 3 inaugural August may contribute to this price hike. Again after the AGM took place in 6th December, the stock price started to fall. But at the end of the year, the company experienced a dismiss increase in the share price.Calculation of BetaAverage Market return (RM) = 1.884658331Covariance (Ri, RM) = 0.00543901Variance = 0.01175511849i = 0.462692922CommentBeta measures the volatility, or authoritative risk, of a security or a portfolio in comparison to the market as a whole. As beta of Aftab Auto is less than 1 that is 0.463 which means that the security will be less volatile than the market.Dividend closure & Stock Price MovementWe will now take a functional approach to the matter of dividend solution for the year. We have taken the dividend declaration on 31/08/2009 an important factor which affected the stock price during that period. A regression analysis is done using dummy variable. The regression output summary followsSUMMARY OUTPUT OF REGRESSIONR shape 0.549260989 Cost of Capital 15% division 10 Investment 1,500,000,000.00 beat 200 200.00 Price 10,000,000.00 10,000,000.00 tax income 2,000,000,000.00 VC 70% 1,400,000,000.00 FC 3.50% 70,000,000.00 Depreciation 150,000,000.00 EBIT 380,000,000.00 Tax 27.50% 104,500,000.00 Net Incom e 275,500,000.00 Cash flow 425,500,000.00 So, project NPV at 2010 is, NPV2010 = -1,500,000,000 + (425,500,000.00 X PVIFAn=10, i=15%)NPV2010 = -1,500,000,000 + 425,500,000.00 * 5.018768626= 635,486,050.36 TakaSo the NPV of the Project is 635,486,050.36 Taka which is positive. So the company may go for this project based on the assumptions we took to calculate the NPV.Sensitivity AnalysisNow we would like to test the sensitivity of NPV to various inputs of the project. Because we need to know what happens to NPV if some inputs change. This helps give us better understanding of the projects situation to sustain the NPV.Particulars Amount in Taka Amount in Taka Change Revenue 2,000,000,000.00 1,600,000,000.00 (0.20) VC 1,400,000,000.00 1,120,000,000.00 (0.20) FC 70,000,000.00 70,000,000.00 - Depreciation 150,000,000.00 150,000,000.00 - EBIT 380,000,000.00 260,000,000.00 (0.32) Tax 104,500,000.00 71,500,000.00 (0.32) Net Income 275,500,000.00 188,500,000.00 (0.32) Cash flow 425,500,000.00 338,500,000.00 (0.20) NPV 635,486,050.36 198,853,179.90 (0.69) Relative Change 3.44 Here we see that,%in Revenue= -20%%in NPV = -69%And Relative Change = 3.44So from the to a higher place analysis we can see that NPV is very sensitive to change in revenue. For 20% decrease of Revenue, NPV is decreased by 69%. Besides that, 1% change of revenue NPV is changed for 3.44%.New Share Price with the projectNew share price= (current capitalization + NPV of the project) / shares outstanding= (market price per share on the last day of 2009 * shares outstanding +NPV) / shares outstanding= (2,048.75 * 2,319,570+ 635,486,050.36) / 2,319,570= 2,322.72 Taka/ shareScenario AnalysisFor scenario analysis we took three cases1. Pessimistic2. Expected3. Optimistic situationWe will slang that only sales are taken for the scenario analysis. The whole income statement is vertical size of it statement. Then after calculating the NPV for three scenarios of sales we will find the share p rice.We took that in pessimistic scenario sales will drop by 20% and in affirmative scenario sales will increase by 20%.Particulars Pessimistic Normal Optimistic criterion 160.00 200.00 240.00 Price 10,000,000.00 10,000,000.00 10,000,000.00 Revenue 1,600,000,000.00 2,000,000,000.00 2,400,000,000.00 VC 1,120,000,000.00 1,400,000,000.00 1,680,000,000.00 FC 70,000,000.00 70,000,000.00 70,000,000.00 Depreciation 150,000,000.00 150,000,000.00 150,000,000.00 EBIT 260,000,000.00 380,000,000.00 500,000,000.00 Tax 71,500,000.00 104,500,000.00 137,500,000.00 Net Income 188,500,000.00 275,500,000.00 362,500,000.00 Cash flow 338,500,000.00 425,500,000.00 512,500,000.00 NPV 198,853,179.90 635,486,050.36 1,072,118,920.83 Now we can calculate the future stock price for these three scenarios using the new share price finding process shown earlier in this chapter. rendering Pessimistic Normal Optimistic MKT Price 2,048.75 2,048.75 2,048.75 No. Of Share Outstanding 2,319,570.00 2,319,57 0.00 2,319,570.00 Current Capitalization (A) 4,752,219,037.50 4,752,219,037.50 4,752,219,037.50 NPV (B) 198,853,179.90 635,486,050.361,072,118,920.83 (A + B) 4,951,072,217.40 5,387,705,087.86 5,824,337,958.33 New Share Price With Project 2,134.48 2,322.72 2,510.96 We can see that according to NPV the future market price of the company changes.Breakeven sum Based on NPVPVIFAn=10, i=15% 5.019 Initial Investment 1,500,000,000.000 EAC 298,878,093.768 Fixed Cost 70,000,000.000 VC 7,000,000.000 Price 10,000,000.000 Tax 0.275 1-Tc 0.725 Depreciation 150,000,000.000 After Tax Fixed Charge 308,378,093.768 After Tax Contribution 2,175,000.000 BEP sum of money 141.783 Particulars Year (2011-2021) Investment 1,500,000,000.000 Quantity 141.78 Price 10,000,000.00 Revenue 1,417,830,316.17 VC 992,481,221.32 FC 70,000,000.00 Depreciation 150,000,000.00 EBIT 205,349,094.85 Tax56,471,001.08 Net Income 148,878,093.77 Cash flow 298,878,093.77 So, project NPV at 2010 is, NPV20 10 = -1,500,000,000 +(298,878,093.77 X PVIFAn=10, i=15%)NPV = -1,500,000,000 + 298,878,093.77 * 5.018768626= 0.00 Taka.Breakeven Price Based on NPVParticulars Amount in Taka Revenue 1,825,349,094.85 VC 1,400,000,000.00 FC 70,000,000.00 Depreciation 150,000,000.00 EBIT 205,349,094.85 Tax 56,471,001.08 Net Income 148,878,093.77 Cash flow 298,878,093.77 We know,Revenue = Price X QuantityPrice = Revenue / QuantityPrice = 1,825,349,094.85 / 200Break-Even Price = 9,126,745.47Chapter 5Prospective AnalysisWith the different factors positively contribute to the ontogenesis of the stock price of Aftab Automobiles, we have analyzed the trend of different variables from the five year financial statement and detected the fruit or reduction of any item. After that we have selected few components which show a growing trend and positively contribute to the produce of Stock Price.As we found that for Aftab Automobiles ltd, Market price movement is mostly similar with compa nys financial performance as like sales maturement & profit growth. harvest-feast locates (%) 2009-2008 2008-2007 2007-2006 2006-2005 GEOMEAN Sales 14.74% 41.81% -15.92% 8.95% 17.67% Net Profit/Loss 28.96% 88.45% -35.28% -2.36% 50.61% Operating Profit/Loss 69.27% 26.14% 47.34% 7.64% 28.45% EBIT 58.21% 81.95% -29.43% 11.35% 37.83% From the income statement we can concentrate on growth rates of sales revenue, operating profit, EBT and Net income. We are concentrating on average of last 4 years growth performance. From here we will use average sales growth of 17.67% for accounting future market price. As growth rate of operating profit, EBT and Net income is close in figure, we are sledding to use average net income growth of 50.61% for forecast the market price trend.As the ball parsimony is experiencing the receding and the impact of recession is also started affecting our economy, so it will be a highly affirmatory choice if we expect that the company will grow at the ra te of 17.67% or 50.61%. On the other hand, the other growth rates that have been calculated also give us the indication that we cannot consider them ascompany growth rate given GDP growth of Bangladesh is 5.5% and world economy is in recession. We can assume that average growth rate for forecasting the share price & value of the company. increment direct Scenario -1 assume growth rate of 17.67% as average of last 4 years growth of Sales Current 5 Year Projection Year 2009 2010 2011 2012 2013 2014 festering come in 17.67% 17.67% 17.67% 17.67% 17.67% Sales 2,124,637,706 2,500,061,189 2,941,822,001 3,461,641,948 4,073,314,080 4,793,068,678 Net Income 316,616,692 372,562,861 438,394,719 515,859,066 607,011,363 714,270,271 Dividend 47,570,900 55,976,678 65,867,757 77,506,590 91,202,004 107,317,398 Addition to Retain Earnings269,045,792 316,586,183 372,526,962 438,352,476 515,809,359 606,952,873 Total Asset 2,438,883,896 2,869,834,680 3,376,934,468 3,973,638,789 4,675,780,763 5 ,501,991,224 Total Debt 1,533,364,403 1,804,309,893 2,123,131,451 2,498,288,779 2,939,736,406 3,459,187,829 Common Stock 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 Retained Earnings 316,270,028 632,856,211 1,005,383,174 1,443,735,650 1,959,545,009 2,566,497,881 Total support 2,438,883,896 3,026,415,569 3,717,764,090 4,531,273,893 5,488,530,879 6,614,935,175 monetary resource Needed - (156,580,889) (340,829,621) (557,635,104) (812,750,116) (1,112,943,951) Debt Equity Ratio 1.691.48 1.33 1.23 1.15 1.10 sustainable Growth roam 42.27% 34.96% 30.48% 27.49% 25.37% 23.81% EPS 136.50 160.62 189.00 222.39 261.69 307.93 Price 2,048.75 2,410.76 2,836.75 3,338.00 3,927.82 4,621.87 Assuming 17.67% growth rate, it has been found that the company has pointless fund, which can be financed distributed to payoff long term debt and reduce the obligations of interest expenses. The projection says that assuming 17.67% growth rate, after 5 years in 2014 EPS of th e company would be 307.93 as well as considering current P/E ratio as invariant factor, in year 2014 share price would be Taka 4,621.87.Growth direct Scenario -2Assuming growth rate of 50.61% as average of last 4 years growth of Net income Current 5 Year Projection Year 2009 2010 2011 2012 2013 2014 Growth pass judgment 50.61% 50.61% 50.61% 50.61% 50.61% Sales 2,124,637,706 3,199,916,849 4,819,394,766 7,258,490,458 10,932,012,478 16,464,703,993 Net Income 316,616,692 476,856,400 718,193,424 1,081,671,116 1,629,104,867 2,453,594,840 Dividend 47,570,900 71,646,532 107,906,843 162,518,496 244,769,106 368,646,751 Addition to Retain Earnings 269,045,792 405,209,867 610,286,581 919,152,620 1,384,335,761 2,084,948,089 Total Asset 2,438,883,896 3,673,203,0365,532,211,092 8,332,063,126 12,548,920,274 18,899,928,825 Total Debt 1,533,364,403 2,309,400,127 3,478,187,532 5,238,498,242 7,889,702,202 11,882,680,486 Common Stock 589,249,465 589,249,465 589,249,465 589,249,465 589,249,4 65 589,249,465 Retained Earnings 316,270,028 721,479,895 1,331,766,477 2,250,919,096 3,635,254,857 5,720,202,947 Total pay 2,438,883,896 3,620,129,488 5,399,203,473 8,078,666,803 12,114,206,524 18,192,132,898 Funds Needed - 53,073,548 133,007,619 253,396,323 434,713,750 707,795,927 Debt Equity Ratio 1.69 1.76 1.81 1.84 1.87 1.88 Sustainable Growth evaluate 42.27% 44.75% 46.56% 47.85% 48.74% 49.35% Price 2,048.75 3,085.62 4,647.26 6,999.23 10,541.54 15,876.62 Assuming 50.61% growth rate, it has been found that the company involve additional fund to run to sustain the business in this growth rate. The projection says that assuming 50.61% growth rate, after 5 years in 2014 EPS of the company would be 1057.78 as well as considering current P/E ratio as unbroken factor, in year 2014 share price would be Taka 15,876.62.Growth Rate Scenario -3Assuming growth rate of 42.27% as sustainable growth rateSustainable Growth Rate = pic= pic= 42.27% Current 5 Year Projection Year 2009 20 10 2011 2012 2013 2014 Growth Rate 42.27% 42.27% 42.27% 42.27% 42.27% Sales 2,124,637,706 3,022,749,966 4,300,506,074 6,118,386,469 8,704,708,779 12,384,303,496 Net Income 316,616,692 450,454,726 640,867,854 911,771,112 1,297,188,735 1,845,527,449 Dividend 47,570,900 67,679,744 96,288,861 136,991,427 194,899,502 277,286,081 Addition to Retain Earnings 269,045,792 382,774,982 544,578,993 774,779,685 1,102,289,233 1,568,241,368 Total Asset 2,438,883,896 3,469,832,148 4,936,575,765 7,023,331,171 9,992,185,492 14,216,013,523 Total Debt 1,533,364,403 2,181,537,673 3,103,702,297 4,415,678,018 6,282,243,106 8,937,829,769 Common Stock 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 Retained Earnings 316,270,028 699,045,010 1,243,624,003 2,018,403,688 3,120,692,921 4,688,934,289 Total Financing 2,438,883,896 3,469,832,148 4,936,575,765 7,023,331,171 9,992,185,492 14,216,013,523 Funds Needed - - - - - - Debt Equity Ratio 1.69 1.69 1.69 1.69 1.69 1.69 Sust ainable Growth Rate 42.27% 42.27% 42.27% 42.27% 42.27% 42.27% EPS 136.50 194.20 276.29 393.08 559.24 795.63 Price 2,048.75 2,914.78 4,146.90 5,899.85 8,393.79 11,941.96 Assuming 42.27% growth rate, it has been found that the company has no trim fund or no deficit. The projection says that assuming 42.27% growth rate, after 5 years in 2014 EPS of the company would be 795.63 as well as considering current P/E ratio as constant factor, in year 2013 share price would be Taka 11,941.96.Growth Rate Scenario -4Assuming growth rate of 5.5% as GDP growth rate Current 5 Year Projection Year 2009 2010 2011 2012 2013 2014 Growth Rate 5.50% 5.50% 5.50% 5.50% 5.50% Sales 2,124,637,706 2,241,492,780 2,364,774,883 2,494,837,501 2,632,053,564 2,776,816,510 Net Income 316,616,692 334,030,610 352,402,294 371,784,420 392,232,563 413,805,354 Dividend 47,570,900 50,187,300 52,947,601 55,859,719 58,932,004 62,173,264 Addition to Retain 269,045,792 283,843,311 299,454,693 315,924,701 333,300,559 351,632,090 Earnings Total Asset 2,438,883,896 2,573,022,510 2,714,538,748 2,863,838,380 3,021,349,490 3,187,523,712 Total Debt 1,533,364,403 1,617,699,445 1,706,672,915 1,800,539,925 1,899,569,621 2,004,045,950 Common Stock 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 589,249,465 Retained Earnings 316,270,028 600,113,339 899,568,031 1,215,492,732 1,548,793,291 1,900,425,381 Total Financing 2,438,883,896 2,807,062,249 3,195,490,411 3,605,282,122 4,037,612,377 4,493,720,796 Funds Needed - (234,039,738) (480,951,663) (741,443,742) (1,016,262,887) (1,306,197,084) Debt Equity Ratio 1.69 1.36 1.15 1.00 0.89 0.80 Sustainable Growth Rate 42% 31% 25% 21% 18% 16% EPS 136.50 144.01 151.93 160.28 169.10 178.40 Price 2,048.75 2,161.43 2,280.31 2,405.73 2,538.04 2,677.63 Assuming realistic one 5.5% growth rate, it has been found that the company has excess fund, which can be financed distributed to payoff long term debt and reduce the obligations of interest expens es. The projection says that assuming 5.5% growth rate, after 5 years in 2014 EPS of the company would be 178.40 as well as considering current P/E ratio as constant factor, in year 2014 share price would be taka 2,677.63.Calculating Expected Return of Aftab Auto using CAPMThe general idea behind CAPM is that investors need to be compensated in two ways time value of money and risk. The time value of money is represented by the risk-free (Rf) rate in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor ask for taking on additional risk or risk premium. This is calculated by taking a risk measure (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-Rf). picpic = 7.25% + 0.463 (1.88% 7.25%) pic = 4.915%We have determined market return Rm for year 2009 taking the monthly changein DSE Index. The average market return in 2009 has been found to be 1.88% and beta for the company is 0.46. If we post all the values in the above equation (considering Rf=7.5) we get the expected return pic to be 4.915%. This is lower than the risk free rate. This is the outcome of low market return. As such the expected return derived from CAPM can not be used for stock valuation.Future Stock Price Valuation under Gordon Model In this section we shall make a projection of market stock price of Aftab Auto. It has a security specific beta risk of 0.46 and the expected return for the company is 4.915%. But the expected return 4.915% is based on market return 1.88%. This phenomenon may be due to the fact that in 2009 due to the political situation & anti corruption activity of the government, a lot of money has been invested in DSE. As a result the price of stocks increased. It is lifelike from the below graph.picFigure-20 DSE worldwide Index for the 2009As the Expected Return derive d from CAPM is too low (4.915%), we shall use another formula for expected rate of return.ks=(D1/P0)+gGrowth rate, g=Retention Rate*ROERetention Rate = 0.85g= (0.85*0.35) =29.71%ROE = 35%D1= D0 (1+g) =20.51*1.2975=26.50ks = (26.61/ 2048.75)+0.2975 = 31.01%From this formula we get the Expected Return (ks) 31.01%. use the above information we can forecast expected stock value for Aftab Auto using the Gordon Model (Dividend Valuation Model). We assume that dividends will grow at a constant rate, g, forever. Since future cash flows grow at a constant rate forever, the value of a constant growth stock is the present value of a growing perpetuitypicWhere, picWe assume g=29.71% & k=37.12%. From all the above information we can forecast the future stock price for 2009. So the stock price for 1st January, 2010 would be BDT 459.64 But the real average stock price for first three months in 2010 was BDT 298.43. The average stock price is 54% lower than our forecasted price. This indicates the p rice of Aftab share is undervalued in the market. The explanation for lower market price may be due to decreasing trend in the General Index in 2010.Fig-21 DSE General Index in 2010Year Dividend intercommunicate Price of Stock(using Gordon Model) 2009 (Actual) Do 20.51 2,048.75 2010 (projected) D1 26.60388 2048.75 2011 (projected) D2 34.50836 2657.469714 2012 (projected) D3 44.76141 3447.050776 2013 (projected) D4 58.06081 4471.230282 2014 (projected) D5 75.3117 5799.711558 2015 (Projected) D6 97.68813 Future Market Price projection in different growth RatepicGrowth Rate 2006 2007 Sales 2,124,637,706 2,500,061,189 Cost 1,808,021,014 2,127,498,327 Net Income 316,616,692 372,562,861.48 Asset 2,438,883,896 2,869,834,680.42 Debt 1,533,364,403 1,804,309,893.01 Equity 905,519,493.00 1,065,524,787.41 Total 2,438,883,896.00 2,869,834,680.42 Debt Equity Ratio 1.69 1.69 Here the plug variable is Dividend distribution of taka 212,557,567 and thus the Debt Equity ratio become s unchanged.Scenario 2Particulars 2,009.00 17.67% Growth Rate Sales 2,124,637,706 2,500,061,189 Cost 1,808,021,014 2,127,498,327 Net Income 316,616,692 372,562,861.48 Asset 2,438,883,896 2,869,834,680.42 Debt 1,533,364,403 1,591,752,325.95 Equity 905,519,493.00 1,278,082,354.48 Total 2,438,883,896.00 2,869,834,680.42 DebtEquity Ratio 1.69 1.25 In this case, no Dividend is paid. So Equity increases for the Net income and thus Debt goes down. So in this case, plug variable is the Debt Equity ratio.Scenario AnalysisIn this case study, the growth rate of 5.5% has been selected as the constant growth rate and the pro forma statement has been generated based on this growth rate. For scenario analysis, both optimistic and pessimistic scenarios are being considered. Current Scenario Analysis of 2009 Pro-forma Year 2009 Pessimistic Normal Optimistic Growth Rate 2.50% 5.50% 8.50% Sales 2,124,637,706 2,177,753,649 2,241,492,780 2,305,231,911 Net Income 316,616,692 324,532,109 334, 030,610 343,529,111 Dividend 47,570,900 48,760,173 50,187,300 51,614,427 Addition to Retain Earnings 269,045,792 275,771,937 283,843,311 291,914,684 Total Asset 2,438,883,896 2,499,855,993 2,573,022,510 2,646,189,027 Total Debt 1,533,364,403 1,571,698,513 1,617,699,445 1,663,700,377 Common Stock 589,249,465 589,249,465 589,249,465 589,249,465 Retained Earnings 316,270,028 592,041,965 600,113,339 608,184,712 Total Financing 2,438,883,896 2,752,989,943 2,807,062,249 2,861,134,555 Funds Needed - (253,133,949) (234,039,738) (214,945,527) Debt Equity Ratio 1.69 1.33 1.36 1.39 Sustainable Growth Rate 42.27% 30.45% 31.35% 32.24% EPS 136.50 139.91 144.01 148.10 Price 2,048.75 2,099.97 2,161.43 2,222.89 In the above scenario analysis, we have taken the 5.5% growth rate in normal situation. If we want to be optimistic enough to predict that the economy will have a high growth and the company will also able to grow at 8.50%. On the other hand, the situation can also be worse enough to have a growth lower than the normal and the company may face a growth of 2.50%. After analyzing the scenario of different situation we can say that the projected growth rate is appropriate for the company which will help the company to operate in the market even if the situation is worse. It gives a positive indication towards the company and increases the shareholders confidence to invest in the companys share.Chapter 6Findings & ConclusionAt the end we can say that, in year 2009, we see that the Market price is much higher then the Book Value of each share. Investors are willing to pay more than the book value of each share. The major reasons of the higher market value are the underestimation of the assets, as the assets are calculated based on the purchase price not on the basis of the market price. Besides that investment to the other shares are also calculated on the purchase price. But the market price is also higher. Moreover, Aftab Automobiles ltd enjoys a better reputati on on the market. So the Intangible assets like, Patent, Trade mark should be considered. So we can say that the companys financial position is good. Based on market price if we re-construct the balance sheet, we have to introduce free grace as intangible asset for Aftab Auto. This goodwill basically shows the confidence of the shareholders & investors on Aftab Auto backed by some positive news.Overall we see that the Sales of the company are increasing which is a good sign. Besides that the company is investing heavily on the fixed assets,which may used to generate more revenue for the company. They are also offering cash dividend each year and also the company paid its short term load and also taking short term loans, which indicates that the company is enjoying a favorable environment in terms of the short term credit situation. So, we can conclude that the Aftab Automobiles Ltd is financially sound based on the Cash Flow analysis.Profit margin, operating profit, EPS, market-boo k value of the Aftab is increasing which indicates that the company is becoming more efficient in terms of its operations and also gaining investors confidence. So we can say that after experiencing some downfall Aftab Auto is now experiencing efficiency in its performance and also investors confidence.From the cash flow statement we can see that, in 2006, 2007 & 2009 the free cash flow figures are negative. This might happen because of high investment in inventory and R&D departments, means the company used more cash than they had sourced of. . Also the cash flows to Investors were sufficient for the company over the years. The company had sufficient fund to pay out dividends and that would eventually maximize the value of the firm. Fixed investments were consistent and consumed huge cash over the years.Using dummy variable to find effects of Dividend declaration was a success in 2009. We have seen that dividend declaration had a significant effect on the share price of Aftab Auto in the year 2009. Price fluctuated after the dividend was declared. Price increased significantly after the dividend was declared.Using dummy variable to find effects of AGM on Stock Price was a success in 2009. We have seen that AGM declaration also had a significant effect on the share price of Aftab Auto in the year 2009. Price fluctuated after the AGM took place. Price fell enormously after the AGM.We assumed a hypothetical situation of capital investment for Aftab Auto. The project turned out to have a positive NPV of 635,486,050.36 Taka. So its a project that adds value to the company.Incorporating the value of the project in the share price result is a share price of 2322.72 taka. This is higher than the market price of 2048.75 taka in the last trading day of 2009. This shows that the project adds value to the wealth of the shareholders.From the sensitivity analysis, we can see that NPV is very sensitive to change in revenue. For 20% decrease of Revenue, NPV is decreased by 6 9%. Besides that, 1% change of revenue NPV is changed for 3.44%.The scenario analysis shows that under pessimistic scenario of sales variable NPV becomes 198,853,179.90 taka and the future share price becomes 2134.48 taka. And optimistic scenario of sales variable results in a NPV of 1,072,118,920.83 taka and future price of share becomes 2510.96 taka. This shows how changes in sales in different situation can affect the project, its NPV and the future market price per share. But in this case it is satisfactory that sales change doesnt affect the share price of the company to a great extent. This can mean that the company has a change way to do their business that a single project is not that much strong to affect the companys price per share.Break-Even Quantity for the new investment is 142 units if the selling price is 10,000,000 per unit. On the other hand, Break-Even Price is 9,126,745.47 if the selling quantity is 200 units.In projecting future market price, assuming realistic one 5.5% growth rate, it has been found that the company has excess fund, which can be financed distributed to payoff long term debt and reduce the obligations of interest expenses. The projection says that assuming 5.5% growth rate, after 5 years in 2014 EPS of the company would be 144.01 as well as considering current P/E ratio as constant factor, in year 2013 share price would be 2,677.63Initially we assumed many growth variables, but considering current world wide economic condition, Bangladesh GDP growth rate of 5.5% as an assumption would be most appropriate, as due to recession period it would be veryoptimistic to assume higher growth rate