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: : : TYPES OF TAXES IN INDIA : : :

 

TYPES OF TAXES IN INDIA

I. DIRECT TAXES :-These types of taxes are directly imposed & paid to Government of India. There has been a

steady rise in the net Direct Tax collections in India over the years, which is healthy signal. Direct taxes, which are imposed by the Government of India, are:

(1) Income Tax :-Income tax, this tax is mostly known to everyone. Every individual whose total income exceeds taxable limit has to pay income tax based on prevailing rates applicable time to time.

(2) Capital Gains Tax :-Capital Gain tax as name suggests it is tax on gain in capital. If you sale property, shares, bonds & precious material etc. and earn profit on it within predefined time frame you are supposed to pay capital gain tax. The capital gain is the difference between the money received from selling the asset and the price paid for it.

(3) Securities Transaction Tax :-A lot of people do not declare their profit and avoid paying capital gain tax, as government can only tax those profits, which have been declared by people. To fight with this situation Government has introduced STT (Securities Transaction Tax ) which is applicable on every transaction done at stock exchange. That means if you buy or sell equity shares, derivative instruments, equity oriented Mutual Funds this tax is applicable.

(4) Perquisite Tax :-Earlier to Perquisite Tax we had tax called FBT (Fringe Benefit Tax) which was abolished in 2009, this tax is on benefit given by employer to employee. E.g If your company provides you non-monetary benefits like car with driver, club membership, ESOP etc. All this benefit is taxable under perquisite Tax.

(5) Corporate Tax :-Corporate Taxes are annual taxes payable on the income of a corporate operating in India. For the purpose of taxation companies in India are broadly classified into domestic companies and foreign companies.

II. INDIRECT TAXES :-(6) Sales Tax :-

Sales tax charged on the sales of movable goods. Sale tax on Inter State sale is charged by Union Government, while sales tax on intra-State sale (sale within State) (now termed as VAT) is charged by State Government.

(7) Service Tax :- Most of the paid services you take you have to pay service tax on those services. This tax is called service tax. Over the past few years, service tax been expanded to cover new services.

(8) Value Added Tax :-The Sales Tax is the most important source of revenue of the state governments; every state has their respective Sales Tax Act. The tax rates are also different for respective states.

(9) Custom duty & Octroi (On Goods) :-Custom Duty is a type of indirect tax charged on goods imported into India. One has to pay this duty , on goods that are imported from a foreign country into India. This duty is often payable at the port of entry (like the airport). This duty rate varies based on nature of items.

(10) Excise Duty :-An excise or excise duty is a type of tax charged on goods produced within the country. This is opposite to custom duty which is charged on bringing goods from outside of country. Another name of this tax is CENVAT (Central Value Added Tax).

(11) Anti Dumping Duty :-Dumping is said to occur when the goods are exported by a country to another country at a price

lower than its normal value. This is an unfair trade practice which can have a distortive effect on international trade. In order to rectify this situation Central Govt. imposes an anti dumping duty not exceeding the margin of dumping in relation to such goods.

III. OTHER TAXES :-(12) Professional Tax :-

If you are earning professional you need to pay professional tax. Professional tax is imposed by respective Municipal Corporations. Most of the States in India charge this tax.

(13) Dividend distribution Tax :-Dividend distribution tax is the tax imposed by the Indian Government on companies according to the dividend paid to a company’s investors. Dividend amount to investor is tax free. At present dividend distribution tax is 15%.

(14) Municipal Tax :-Municipal Corporation in every city imposed tax in terms of property tax. Owner of every property has to pay this tax. This tax rate varies in every city.

(15) Entertainment Tax :-Tax is also applicable on Entertainment; this tax is imposed by state government on every financial transaction that is related to entertainment such as movie tickets, major commercial shows exhibition, broadcasting service, DTH service and cable service.

(16) Stamp Duty, Registration Fees, Transfer Tax :- If you decide to purchase property than in addition to cost paid to seller. You must consider additional cost to transfer that property on your name.

(17) Education Cess , Surcharge :-Education cess is deducted and used for Education of poor people in INDIA. All taxes in India are subject to an education cess, which is 3% of the total tax payable. The education cess is mainly applicable on Income tax, excise duty and service tax.

(18) Gift Tax :-If you receive gift from someone it is clubbed with your income and you need to pay tax on it. This tax is called as gift tax.

(19) Wealth Tax :-Wealth tax is a direct tax, which is charged on the net wealth of the assessee. Wealth tax is chargeable in respect of Net wealth corresponding to Valuation date.Net wealth means all assets less loans taken to acquire those assets. Wealth tax is 1% on net wealth exceeding 30 Lakhs (Rs 3,000,000). So if you have more money, assets you are liable to pay tax.

(20) Toll Tax :-At some of places you need to pay tax in order to use infrastructure (road, bridge etc.) build from your money given to government as Tax. This tax is called as toll tax. This tax amount is very small amount but, to be paid for maintenance work and good up keeping.

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© Ushodaya Enterprises Private Limited 2014

HIGHLIGHTS OF ECONOMIC SURVEY 2013-14

CHAPTER 1: STATE OF THE ECONOMY AND PROSPECTSEconomy to grow in the range of 5.4 – 5.9 per cent in 2014-15 overcoming sub-5 percent

growth.Growth slowdown was broad based, affecting in particular the industry sector.Aided by favourable monsoons, agricultural and allied sector registered a growth of 4.7 per

cent in 2013-14.Industry and Service sectors also witnessed slowdown.CHAPTER 2: ISSUES AND PRIORITIES

Reforms needed for long term-growth prospects on 3 fronts- low and stable inflation regime, tax and expenditure reform and regulatory framework.

Survey suggests removal of restriction on farmers to buy, sell and store their produce to customers across the country and the world.

Rationalisation of subsidies on inputs such as fertilizer and food is essential.Government needs to eventually move towards income support for farmers and poor

households.CHAPTER 3: PUBLIC FINANCE

The fiscal policy for 2013-14 was calibrated with two-fold objectives; first, to aid growth revival; and second, to reach the FD level targeted for 2013-14.

The Budget for 2013-14 followed the policy of revenue augmentation and expenditure rationalization to contain government spending within sustainable limits.

The fiscal outcome of the central government in 2013-14 was achieved despite the macroeconomic challenges of growth slowdown, elevated levels of global crude oil prices, and slow growth of investment.

CHAPTER 4: PRICES AND MONETARY MANAGEMENTHigh inflation, particularly food inflation, was the result of structural as well as seasonal

factors.IMF projects most global commodity prices are expected to remain flat during 2014-15.The RBI with a view to restoring stability to the foreign exchange market, hiked short term

interest rate in July and compressed domestic money market liquidity.CHAPTER 5: FINANCIAL INTERMEDIATION

RBI has indentified five sectors -- infrastructure, iron and steel, textiles, aviation and mining as the stressed sectors.

Public sector banks (PSBs) have high exposures to the ‘industry’ sector in general and to such ‘stressed’ sectors in particular.

The New Pension System (NPS), now National Pension System, introduced for the new recruits who join government service on or after January 2004, represents a major reform of Indian pension arrangements.

The next wave of infrastructure financing will require a capable bond market.CHAPTER 6: BALANCE OF PAYMENTS

The India’s balance-of-payments position improved dramatically in 2013-14 with current account deficit at US $ 32.4 billion as against US$ 88.2 billion in 2012-13.

India’s foreign exchange reserves increased from US$ 292.0 billion at end March 2013 to US$

304.2 billion at end march 2014.India’s external debt has remained within manageable limits due to the external debt

management policy with prudential restrictions on debt varieties of capital inflows.CHAPTER 7: INTERNATIONAL TRADE

World tradeWorld trade volume which decelerated to 2.8 per cent in 2012 has shown signs of recovery in

2013, albeit slow with a 3.0 per cent growth.The sharp fall in imports and moderate export growth in 2013-14 resulted in a sharp fall in

India's trade deficit by 27.8 per cent.In April-May 2014, trade deficit declined by 42.4 per cent.CHAPTER 8: AGRICULTURE AND FOOD MANAGEMENT

Record food grains and oilseeds production of 264.4 million tonnes (mt) and 32.4 mt is estimated in 2013-14.

Horticulture production estimated at 265 mt in 2012-13 has exceeded the production of foodgrains and oilseeds for the first time.

Due to higher procurement, stocks of foodgrains in the Central Pool have increased to 69.84 million tonnes as on June 1, 2014.

The net availability of foodgrains increased to 229.1 million tonnes and that of edible oils to 12.7 kg per year in 2013.

CHAPTER 9: INDUSTRIAL PERFORMANCEThe latest gross domestic product (GDP) estimates show that industry grew by just 1.0 per cent

in 2012-13 and slowed further in 2013-14, posting a modest increase of 0.4 per cent.CHAPTER 10: SERVICES SECTOR

India ranked 12th in terms of services GDP in 2012 among the world’s top 15 countries in terms of GDP (at current prices).

India has the second fastest growing services sector with its CAGR at 9.0 per cent, just below China’s 10.9 per cent, during 2001 to 2012.

In 2013-14, FDI inflows to the services sector (top five sectors including construction) declined sharply by 37.6 per cent to US$ 6.4 billion compared to an overall growth in FDI inflows at 6.1 per cent resulting in the share of the top five services in total FDI falling to nearly one-sixth.

CHAPTER 11: ENERGY, INFRASTRUCTURE AND COMMUNICATIONSMajor sector-wise performance of core industries and infrastructure services during 2013-14

shows a mixed trend. While the growth in production of power and fertilizers was comparatively higher than in 2012-13, coal, steel, cement, and refinery production posted comparatively lower growth. Crude oil and natural gas production declined during 2013-14.

The performance of the coal sector in the first two years of the Twelfth Plan has been subdued with domestic production at 556 MT in 2012-13 and 566 MT in 2013-14.

A total length of 21,787 km of national highways has been completed till March2014 under various phases of the NHDP. In spite of several constraints due to the economic downturn, the NHAI constructed 2844 km length in 2012-13, its highest ever annual achievement. During 2013-14 a total of 1901 km of road construction was completed.

From the infrastructure development perspective, while important issues like delays in regulatory approvals, problems in land acquisition & rehabilitation, environmental clearances, etc. need immediate attention, time overruns in the implementation of projects continue to be one of the main reasons for underachievement in many of the infrastructure sectors.

CHAPTER 12: SUSTAINABLE DEVELOPMENT & CLIMATE CHANGEHuman- induced Greenhouse gas (GHG) emissions are growing and are chiefly responsible for

climate change.The world is not on track for limiting increase in global average temperature to below 2oC,

above pre-industrial levels. GHG emissions grew on average 2.2 percent per year between 2000 and 2010, compared to 1.3 per cent per year between 1970 and 2000.

There is immense pressure on governments to act through two new agreements on climate change and sustainable development, both of which will be global frameworks for action to be finalized next year.

The cumulative costs of India’s low carbon strategies have been estimated at around USD 834 billion at 2011 prices, between 2010 and 2030.

CHAPTER 13: HUMAN DEVELOPMENTIndia’s Human Development Rank and performance

According to HDR 2013, India has slipped down in HDI with its overall globalranking at 136 (out of the 186 countries) as against 134 (out of 187 countries) as per HDR 2012. It is still in the medium human development category.

The poverty ratio (based on the MPCE of ` 816 for rural areas and `1000 for urbanareas in 2011-12 at all India level), has declined from 37.2 per cent in 2004-05 to 21.9 per cent in 2011-12.

In absolute terms, the number of poor declined from 407.1 million in 2004-05 to269.3 million in 2011-12 with an average annual decline of 2.2 percentage points during 2004-05 to 2011-12.

During 2004-05 to 2011-12, employment growth [CAGR] was only 0.5 per cent, compared to 2.8 per cent during 1999-2000 to 2004-05 as per usual status.

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: : :WORLD HERITAGE SITES IN INDIA : : :

 

S.No. Name Region01 Kaziranga Wild Life Sanctuary, Assam Assam, India02 Manas Wild Life Sanctuary, Assam Assam, India

03 Mahabodhi Temple Complex at Bodh Gaya, Bihar Bihar, India

04 Humayun’s Tomb, Delhi Delhi, India05 Qutb Minar and its Monuments, Delhi Delhi, India07 Churches and Convents of Goa Goa (Old Goa), Goa,India

08 Champaner-Pavagadh Archaeological Park, Gujarat Gujarat, India

09 Group of Monuments at Hampi Bellary District,Karnataka, India10 Group of Monuments at Pattadakal Real

11 Buddhist Monuments at Sanchi, Madhya Pradesh Madhya Pradesh, India

12 Rock Shelters of Bhimbetka, Madhya Pradesh Madhya Pradesh, India

13 Khajuraho Group of Monuments, Madhya Pradesh Madhya Pradesh, India

14 Ajanta Caves Maharashtra,India15 Ellora Caves Maharashtra,India16 Elephanta Caves Maharashtra,India

17 Chhatrapati Shivaji Terminus (formerly Victoria Terminus) Maharashtra,India

18 Sun Temple, Konârak Puri District,Orissa, India19 Keoladeo National Park Bharatpur,Rajasthan, India20 Jantar Mantar, Jaipur Jaipur,Rajasthan, India

21 Great Living Chola Temples

Brihadeeswarar temple,Gangaikonda Cholapuram,Tamil Nadu,India AiravateshwararTemple,Darasuram,Tamil Nadu,IndiaBrihadeeswararTemple,Thanjavur,Tamil Nadu,India

22 Group of Monuments at Mahabalipuram Mahabalipuram,Tamil Nadu,India23 Agra Fort, Uttar Pradesh Uttar Pradesh,India24 Fatehpur Sikri, Uttar Pradesh Uttar Pradesh,India25 Taj Mahal, Uttar Pradesh Uttar Pradesh,India

26

Mountain Railways of India Darjeeling Himalayan Railway ,Darjeeling, West BengalNilgiri Mountain Railway Ooty, Tamil NaduKalka-Shimla Railway,Himachal Pradesh India

27 Nanda Devi and Valley of Flowers National Parks Chamoli District,Uttarakhand,India

28 Sundarbans National Park Bangladesh,West Bengal(India)29

Western Ghats Agasthyamalai Sub-ClusterPeriyar Sub-ClusterAnamalai Sub-ClusterNilgiri Sub-ClusterTalakaveri Sub-Cluster (fiveproperties)

Kudremukh Sub-Cluster (fiveproperties)Sahyadri Sub-Cluster

30 Hill Forts of Rajasthan ChittorgarhKumbhalgarhRanthambhoreAmber Sub-ClusterJaisalmerGagron

31 Rani ki vav(The Queen's Stepwell) Patan, Gujarat,India32 Great Himalayan National Park Himachal Pradesh, India

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: : :HIGHLIGHTS OF UNION BUDGET 2014-15: : :

 

HIGHLIGHTS OF UNION BUDGET 2014 - 15 1. Fiscal deficit target retained at 4.1% of GDP for current fiscal and 3.6 for 2015-16 and 3% for 2016-172. Revenue Deficit seen at 2.9% for FY153. Aim to achieve 7-8 per cent economic growth rate in next 3-4 years: Finance Minister4. Committed for growth of agriculture at the rate of 4 per cent.5. Defence FDI cap raised to 49% from 26% at present6. Exemption limit on income tax from Rs. 2 lakh to Rs. 2.5 lakh.7. For senior citizens, the exemption on income has been raised to Rs. 3 lakh per annum.8. Tax-free cap on home loan interest from Rs. 1.5 to Rs. 2 lakh.9. No change in Income tax rates and slabs .10. Annual PPF ceiling to be enhanced to Rs 1.5 lakh, from Rs 1 lakh11. Women Safety:i. Outlay of Rs. 50 crores for a pilot scheme on road safetyii. Another 150 crores to be spent by MHA on safety on women in larger citiesiii. 'Beti Bachao, Beti Padhao Yojana' - 100 crores12. Rs 3600 cr set aside for National Rural Drinking Water: Finance Minister13. Rural housing: Rs 8000 crore for national housing banking programme

14. Metro rails in PPP mode; Rs. 100 cr set aside for metro scheme in Ahmadabad and Lucknow15. Rs. 100 crores to set up virtual classrooms16. Rs. 500 crores for setting up 5 more IIMs and IITs17. Rs. 7,060 crore allocated for building new cities18. Jaitley announces e-visas to promote tourism19. The government is committed to the welfare of scheduled castes and tribes.20. Rs. 200 crores credit scheme for start-ups by those from scheduled castes and tribes21. Government is committed to providing 24x7 electricity in all houses22. 15 Braille press to come up.23. Currency note with Braille-like signs24. Promote FDI selectively in sectors. India needs a boost in job creation in the manufacturing sector25. 24x7 electricity in all houses26. Minimum pension of Rs.1000 per month to all PP schemes.27. Rs. 50,548 cr proposed for SC development28. Bharat Swach Yojna proposed for hygiene and cleanliness.29. Rs. 200 crore for Statue of Unity, a statue of Sardar Patel in Gujarat.30. Rs. 1000 cr for irrigation plan named Pradhan mantri krishi sichayin yojana.31. Rs. 7060 cr for creating smart cities.32. Assam and Jharkhand to get Centre of Excellence on farming33. Rs. 100 crores for modernization of Madrasas34. Jaitley announces Skill India, a programme to train youth for jobs35. Equity in PSU banks to be raised through share sale to the public36. Rural housing: Rs 8000 crores for national housing banking programme37. MGNREGA programme to made more productive38. Senior Citizens Pension Plan Extended Till August 201539. National Adaption Fund for climate change to be set up40. Rs. 500 crore for price stabilization fund.41. 100 soil testing laboratories across the country.42. Agriculture University in AP and Rajasthan, and Horticulture University in Haryana, Telangana; Rs. 200 cr set aside43. Crisis Management Center for women at Delhi44. Start up village at Rs 100 crore to promote entrepreneurship among rural youth.45. Rs. 14,389 crores for PM Sadak Yojana46. Rs. 200 crore allocated to set up six textiles clusters

: : :CENTRAL CABINET MINISTERS : : :

 

CENTRAL CABINET MINISTERS

S.No Name Portfolio

1. Shri Narendra Modi

Prime Minister and also in-charge of: Ministry of Personnel, Public Grievances and Pensions; Department of Atomic Energy; Department of Space; and All important policy issues and all other portfolios not allocated to any Minister.

2. Shri Raj Nath Singh Minister of Home Affairs.

3. Smt. Sushma Swaraj Minister of External Affairs; and Minister of Overseas Indian Affairs.

4. Shri Arun Jaitley Minister of Finance; Minister of Corporate Affairs; and Minister of Defence.

5. Shri M. Venkaiah NaiduMinister of Urban Development; Minister of Housing and Urban Poverty Alleviation; and Minister of Parliamentary Affairs.

6. Shri Nitin Jairam Gadkari Minister of Road Transport and Highways; and Minister of Shipping.

7. Shri D.V. Sadananda Gowda Minister of Railways.

8. Sushri Uma Bharati Minister of Water Resources, River Development and Ganga Rejuvenation.

9. Dr. Najma A. Heptulla Minister of Minority Affairs.

10.Shri Nitin jairam Gadkari (in place of Shri Gopinathrao Munde who died on 3 June 2014)

Minister of Rural Development; Minister of Panchayati Raj; and Minister of Drinking Water and Sanitation.

11. Shri Ramvilas Paswan Minister of Consumer Affairs, Food and Public Distribution.

12. Shri Kalraj Mishra Minister of Micro, Small and Medium Enterprises.

13. Smt. Maneka Sanjay Gandhi Minister of Women and Child Development.

14. Shri Ananthkumar Minister of Chemicals and Fertilizers.

15. Shri Ravi Shankar Prasad Minister of Communications and Information Technology; and Minister of Law and Justice.

16. Shri Ashok Gajapathi Raju Pusapati Minister of Civil Aviation.

17. Shri Anant Geete Minister of Heavy Industries and Public Enterprises.

18. Smt. Harsimrat Kaur Badal Minister of Food Processing Industries.

19. Shri Narendra Singh Minister of Mines;

  Tomar Minister of Steel; and Minister of Labour and Employment.

20. Shri Jual Oram Minister of Tribal Affairs.

21. Shri Radha Mohan Singh Minister of Agriculture.

22. Shri Thaawar Chand Gehlot Minister of Social Justice and Empowerment.

23. Smt. Smriti Zubin Irani Minister of Human Resource Development.

24. Dr. Harsh Vardhan Minister of Health and Family Welfare.

: : : Important Summits/Meetings in 2014 : : :

 1. 07-JUN-2014 - 40th G-7 summit 2014 held at Brussels2. 27-MAR-2014 - 3rd Nuclear Security Summit 20143. 20-FEB-2014 - Wharton India Economic Forum to be held in Pennsylvania4. 15-FEB-2014 - G-4 Director Generals for UN Affairs met in New Delhi5. 14-FEB-2014 - Third World Congress on Agro-Forestry6. 09-JAN-2014 - ASSOCHAM organized Seventh Global Insurance Summit at Hyderabad7. 31-DEC-2013 - International Petroleum Conference 2014 held in New Delhi8. 07-DEC-2013 - 9th WTO Ministerial Conference concluded at Bali, Indonesia9. 06-DEC-2013 - 8th Asia Gas Partnership Summit held at New Delhi10. 29-NOV-2013 - International Heavy Minerals Conference 2013 held at Visakhapatnam, AP11. 9th North East Business Summit Began in Assam12. 3rd BRICS International Competition Conference inaugurated by Prime Minister of India in New Delhi.13. 22nd CHOGM Summit ended with adoption of three declarations in Colombo, Sri Lanka.14. 11th ASEM Foreign Ministers Meeting held at New Delhi15. India's First Naval and Maritime Exposition Conference Concluded at Cochin, Kerala. IMPORTANT SUMMITS HELD ON 2012-13BRICS (Brazil, Russia, India, China and South Africa) Summits• 4th BRICS Summit 2012 – New Delhi, India• 5th BRICS Summit 2013 – Durban, South Africa G-8 Annual Summits Group of Eight (G8) Countries – France, Germany, Italy, Japan, United Kingdom, United States of America, Canada, Russia.• 37th G8 Meeting 2011 – Deauville, France• 38th G8 Meeting 2012 – David camp, USA• 39th G8 Summit 2013 – County Fermanagh, UK• 40th G8 Summit 2014 – Russia G-20 Summits• 7th G 20 Meeting 2012 – Los Cabos, Mexico• 8th G 20 Meeting 2013 – Saint Petersburg, Russia• 9th G 20 Meeting 2014 – Brisbane, Australia SAARC Summits SAARC – South Asian Association for Regional Cooperation

• 17th SAARC Summit 2011– Addu, Maldives• 18th SAARC Summit 2013 – Kathmandu,Nepal ASEAN Summits ASEAN – Association of South East Asian Nation • 19th ASEAN Summit 2011 (November) – Bali, Indonesia• 20th ASEAN Summit 2012 (April)– Phnom penh, Cambodia• 21th ASEAN Summit 2012 (November)– Phnom penh, Cambodia ASEAN-India Summit • 9th ASEAN-India Summit 2011 – Bali, Indonesia• 10th ASEAN-India Summit 2012 – Phnom penh, Cambodia East Asia Summit (EAS) EAS meetings are held after annual ASEAN leaders’ meetings. • 6th East Asia Summit 2011 – Bali, Indonesia• 7th East Asia Summit 2012 – Phnom penh, Cambodia IBSA Summits IBSA Dialogue Forum - India, Brazil, South Africa. • 5th IBSA Summit 2011 – Pretoria, South Africa• 6th IBSA Summit 2013 – India APEC Summits APEC – Asia Pacific Economic Cooperation • 23rd APEC summit 2011 – Honolulu, USA• 24th APEC Summit 2012 – Vladivostok,Russia• 25th APEC Summit 2013 – Medan/Jakarta, Indonesia• 26th APEC Summit 2014 – China• 27th APEC Summit 2015 – Philippines• 28th APEC Summit 2016 – Lima, Peru OPEC Seminars OPEC – Organization of Petroleum Exporting Countries • 4th OPEC International Seminar 2009 – Vienna, Austria• 5th OPEC International Seminar 2012 – Vienna, Austria NAM Summits NAM – Non-aligned Movement • 16th NAM Summit 2012 – Tehran, Iran• 17th NAM Summit 2015 – Caracas,Venezuela SCO Meetings SCO – Shanghai Cooperation Organization • SCO Meeting 2011 – Astana, Kazakhstan• SCO Meeting 2012 – Beijing, China• SCO Meeting 2013 – Kyrgyzstan NATO (North Atlantic treaty organization) international conference on Afghanistan will be held in Chicago (USA) Asian Development Bank (ADB) Annual Meetings Annual meeting of the board of governors of the Asian Development Bank (ADB) held every year. • ADB Annual Meeting 2012 – Manila, Philippines• ADB Annual Meeting 2013 – New Delhi, IndiaWTO Ministerial Conferences • 8th WTO Ministerial Conferences2011 – Geneva, Switzerland• 9th WTO Ministerial Conferences2013 (Expected) -Bali, Indonesia

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: : : INTERNATIONAL ALLIANCES : : :

 South Asian Association for Regional Cooperation (SAARC)The South Asian Association for Regional Cooperation (SAARC) is an organisation of South Asian nations, which was established on 8 December 1985 when the government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka formally adopted its charter providing for the promotion of economic and social progress, cultural development within the South Asia region and also for friendship and co-operation with other developing countries. It is dedicated to economic, technological, social, and cultural development emphasising collective self-reliance. Its seven founding members are Sri Lanka, Bhutan, India, Maldives, Nepal, Pakistan, and Bangladesh. Afghanistan joined the organisation in 2007.Meetings of heads of state are usually scheduled annually; meetings of foreign secretaries, twice annually. It is headquartered in Kathmandu, Nepal.Regional CentresThe SAARC Secretariat is supported by following Regional Centres established in Member States to promote regional co-operation. These Centres are managed by Governing Boards comprising representatives from all the Member States, SAARC Secretary-General and the Ministry of Foreign/External Affairs of the Host Government. The Director of the Centre acts as Member Secretary to the Governing Board which reports to the Programming Committee.SAARC Agricultural Centre (SAC), DhakaSAARC Meteorological Research Centre (SMRC), DhakaSAARC Tuberculosis Centre (STC), KathmanduSAARC Documentation Centre (SDC), New DelhiSAARC Human Resources Development Centre (SHRDC), IslamabadSAARC Coastal Zone Management Centre (SCZMC), MaldivesSAARC Information Centre (SIC), NepalSAARC Energy Centre (SEC), PakistanSAARC Disaster Management Centre (SDMC), IndiaSAARC Development Fund (SDF), BhutanSAARC Forestry Centre (SFC), BhutanSAARC Cultural Centre (SCC), Sri LankaBRICSBRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa.The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010. The BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and global affairs; all five are G-20 members. As of 2013, the five BRICS countries represent almost 3 billion people, with a combined nominal GDP of US$16.039 trillion, and an estimated US$4 trillion in combined foreign reserves.Presently, South Africa holds the chair of the BRICS group. The BRICS have received both praise and criticism from numerous quarters.BRICS Development BankThe BRICS Development Bank is a proposed development bank of the BRICS nations. Its establishment was agreed to by BRICS leaders at the 2013 BRICS summit held in Durban,

South Africa on 27 March 2013. Among its goals is to provide funding for infrastructure projects, and create a "Contingent Reserve Arrangement" worth $100 billion which will help member countries counteract future financial shocks.Association of Southeast Asian Nations (ASEAN)The Association of Southeast Asian Nations is a geo-political and economic organisation of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.ASEAN covers a land area of 4.46 million km², which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. In 2011, its combined nominal GDP had grown to more than US$ 2 trillion. If ASEAN were a single entity, it would rank as the eighth largest economy in the world.Headquarters is at Jakarta, Indonesia.Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation(BIMSTEC)The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation involving a group of countries in South Asia and South East Asia. These are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.BackgroundOn 6 June 1997, a new sub-regional grouping was formed in Bangkok and given the name BIST-EC (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation). Myanmar attended the inaugural June Meeting as an observer and joined the organization as a full member at a Special Ministerial Meeting held in Bangkok on 22 December 1997, upon which the name of the grouping was changed to BIMST-EC. Nepal was granted observer status by the second Ministerial Meeting in Dhaka in December 1998. Subsequently, full membership has been granted to Nepal and Bhutan in 2004.In the first Summit on 31 July 2004, leaders of the group agreed that the name of the grouping should be known as BIMSTEC or the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation.Mekong–Ganga Cooperation (MGC)The Mekong–Ganga Cooperation (MGC) was established on November 10, 2000 at Vientiane at the First MGC Ministerial Meeting. It comprises six member countries, namely India, Thailand, Myanmar, Cambodia, Laos and Vietnam. They emphasised four areas of cooperation, which are tourism, culture, education, and transportation linkage in order to be solid foundation for future trade and investment cooperation in the region. The organization takes its name from the Ganga and the Mekong, two large rivers in the region.Economic Cooperation Organization (ECO)The Economic Cooperation Organization (ECO) is an intergovernmental organization involving seven Asian and three Eurasian nations, part of the South-central Asian Union. It provides a platform to discuss ways to improve development and promote trade, and investment opportunities. The ECO is an ad hoc organization under the United Nations Charter (Chap. VIII). The common objective is to establish a single market for goods and services, much like

the European Union. ECO's secretariat and cultural department are located in Tehran, its economic bureau is in Turkey and its scientific bureau is situated in Pakistan. The organization's population is 416,046,863 and the area is 8,620,697 km². The organization was founded by Turkey, Iran and Pakistan. ECO's Charter was signed on 15 March 1995 in Islamabad, Pakistan.Shanghai Cooperation Organisation (SCO)The Shanghai Cooperation Organisation or SCO is a Eurasian political, economic and military organisation which was founded in 2001 in Shanghai by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Except for Uzbekistan, the other countries had been members of the Shanghai Five, founded in 1996; after the inclusion of Uzbekistan in 2001, the members renamed the organisation. Headquarters is in Beijing, China.Cooperation Council for the Arab States of the Gulf or Gulf Cooperation Council (GCC)The Cooperation Council for the Arab States of the Gulf (CCASG), also known as the Gulf Cooperation Council (GCC), is a political and economic union of Arab states bordering the Persian Gulf, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.In December 2011, Saudi Arabia proposed that the GCC deepen their integration to form a confederation. Objections have been raised against the proposal by the other countries.There have been discussions regarding the future membership of Jordan, Morocco, and YemenHeadquartered at Riyadh, Saudi Arabia.Asia Cooperation Dialogue (ACD)The Asia Cooperation Dialogue (ACD) is an intergovernmental organization created in 2002 to promote Asian cooperation at a continental level and to help integrate separate regional cooperation organizations such as ASEAN, SAARC and the Gulf Cooperation Council.HistoryIt is the main objective of the former Thai Prime Minister to form the Asia Cooperation Dialogue or the forerunner to the ASIAN UNION. The ACD's main members states are Kuwait, Pakistan, Iran, Bahrain, Sri Lanka, Turkey, Thailand, China and Japan, the so-called major nine ACD Nations. Organization of the Petroleum Exporting Countries (OPEC)OPEC (Organization of the Petroleum Exporting Countries) is an oil cartel whose mission is to coordinate the policies of the oil-producing countries. The goal is to secure a steady income to the member states and to secure supply of oil to the consumers.OPEC is an intergovernmental organization that was created at the Baghdad Conference on September 10–14, 1960, by Iraq, Kuwait, Iran, Saudi Arabia and Venezuela. Later it was joined by nine more governments: Libya, United Arab Emirates, Qatar, Indonesia, Algeria, Nigeria, Ecuador, Angola, and Gabon. OPEC was headquartered in Geneva, Switzerland before moving to Vienna, Austria, on September 1, 1965.OPEC was formed at a time when the international oil market was largely separate from centrally planned economies, and was dominated by multinational companies. OPEC's ‘Policy Statement' states that there is a right of all countries to exercise sovereignty over their natural resources.Headquarters is in Vienna, Austria.Non-Aligned Movement (NAM)The Non-Aligned Movement (NAM) is a group of states which are not formally aligned with or

against any major power bloc. As of 2012, the movement has 120 members and 17 observer countries.The organization was founded in Belgrade in 1961, and was largely conceived by India's first prime minister, Jawaharlal Nehru; Indonesia's first president, Sukarno; Egypt's second president, Gamal Abdel Nasser; Ghana's first president Kwame Nkrumah; and Yugoslavia's president, Josip Broz Tito. All five leaders were prominent advocates of a middle course for states in the Developing World between the Western and Eastern blocs in the Cold War. The phrase itself was first used to represent the doctrine by Indian diplomat Vengalil Krishnan Krishna Menon in 1953, at the United Nations.North Atlantic Treaty Organization (NATO)is an intergovernmental military alliance based on the North Atlantic Treaty which was signed on 4 April 1949. The organization constitutes a system of collective defence whereby its member states agree to mutual defense in response to an attack by any external party. NATO's headquarters are in Brussels, Belgium, one of the 28 member states across North America and Europe, the newest of which, Albania and Croatia, joined in April 2009. An additional 22 countries participate in NATO's "Partnership for Peace", with 15 other countries involved in institutionalized dialogue programs. The combined military spending of all NATO members constitutes over 70% of the world's defence spending.Headquarters at Brussels, Belgium.Commonwealth of NationsThe Commonwealth of Nations is an intergovernmental organisation of 53 member states that were mostly territories of the former British Empire. The Commonwealth operates by intergovernmental consensus of the member states, organised through the Commonwealth Secretariat, and non-governmental organisations, organised through the Commonwealth Foundation Headquarters at London, United Kingdom.Group of 15 (G-15)The Group of 15 (G-15) is an informal forum set up to foster cooperation and provide input for other international groups, such as the World Trade Organization and the Group of Eight. It was established at the Ninth Non-Aligned Movement Summit Meeting in Belgrade, Yugoslavia, in September 1989, and is composed of countries from Latin America, Africa, and Asia with a common goal of enhanced growth and prosperity. The G-15 focuses on cooperation among developing countries in the areas of investment, trade, and technology. Membership has since expanded to 17 countries, but the name has remained unchanged. Chile, Iran and Kenya have since joined the Group of 15, whereas Yugoslavia is no longer part of the group; Peru, a founding member-state, decided to leave the G-15 in 2011.Membership :17

Algeria Argentina Brazil Chile Egypt IndiaIndonesia Iran Jamaica Kenya MalaysiaMexico Zimbabwe Nigeria Senegal Sri Lanka VenezuelaHeadquarters: Geneva, SwitzerlandGROUP OF 24 (G24)The Group of 24 (G24), a chapter of the G-77, was established in 1971 to coordinate the positions of developing countries on international monetary and development finance issues and to ensure that their interests were adequately represented in negotiations on international monetary matters. The group, which is officially called the Intergovernmental Group of Twenty-

Four on International Monetary Affairs and Development, is not an organ of the International Monetary Fund, but the IMF provides secretariat services for the Group. Its meetings usually take place twice a year, prior to the International Monetary and Financial Committee and Development Committee meetings, to enable developing country members to discuss agenda items beforehand. Although membership in the G-24 is strictly limited to 24 countries, any member of the G-77 can join discussions. China has been a "special invitee" since the Gabon meetings of 1981.Member states Algeria Argentina Brazil Colombia Democratic Republic of the CongoEgypt Ethiopia Gabon Ghana Kenya GuatemalaIndia Iran Ivory Coast Lebanon MexicoNigeria Pakistan Peru Philippines South AfricaSri Lanka Syria Peru Trinidad and Tobago VenezuelaGROUP OF 77 (G77)The Group of 77 at the United Nations is a loose coalition of developing nations, designed to promote its members' collective economic interests and create an enhanced joint negotiating capacity in the United Nations. There were 77 founding members of the organization, but the organization has since expanded to 132 member countries.India is a memeber state in G 77.European Union (EU)The European Union (EU) is an economic and political union of 28 member states that are located primarily in Europe. The EU operates through a system of supranational independent institutions and intergovernmental negotiated decisions by the member states. Institutions of the EU include the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union, the European Central Bank, the Court of Auditors, and the European Parliament. The European Parliament is elected every five years by EU citizens. The EU's de facto capital is Brussels.Member states Austria Belgium Bulgaria Croatia CyprusCzech Republic Denmark Estonia Finland FranceGermany Greece Hungary Ireland ItalyLatvia Lithuania Luxembourg Malta NetherlandsPoland Portugal Romania Slovakia SloveniaSpain Sweden United Kingdom    Group of Eight (G 8)The Group of Eight (G8) is a forum for the governments of eight of the world's largest national economies as nominal GDP with higher HDI; not included are India at 9th, Brazil at 7th and China at 2nd. The forum originated with a 1975 summit hosted by France that brought together representatives of six governments:France, the Federal Republic of Germany, Italy, Japan, the United Kingdom, and the United States, thus leading to the name Group of Six or G6. The summit became known as the Group of Seven or G7 the following year with the addition of Canada. The G7 is composed by the 7 developed wealthiest countries on Earth (as national net wealth) and by the 7 developed wealthiest countries on Earth by GDP, and it remains active despite the creation of the G8. In 1997, Russia was added to the group which then became known as the G8. The European Union is represented within the G8 but cannot host or chair summits.

G 8 Member States:Canada, France, Germany, Italy, Japan, Russia, United Kingdom and the United States.G-20 major economiesThe Group of Twenty Finance Ministers and Central Bank Governors (also known as the G-20, G20, and Group of Twenty) is a group of finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union, which is represented by the President of the European Council and by the European Central Bank. The G-20 heads of government or heads of state have also periodically conferred at summits since their initial meeting in 2008. Collectively, the G-20 economies account for approximately 86% of the gross world product (GWP), 80 percent of world trade (including EU intra-trade), and twothirds of the world population.Membership: Argentina Australia Brazil Canada ChinaEuropean Union France Germany India IndonesiaItaly Japan Mexico Saudi ArabiaSouth Africa South Korea Turkey United Kingdom United States

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: : :CENTRAL RESEARCH INSTITUTIONS : : :

 

Aryabhatta Research Institute of Observational Sciences NainitalCentral Drug Research Institute LucknowCentral Electronics Engineering Research Institute PilaniCentral Food Technological Research Institute MysoreCentral Glass and Ceramic Research Institute (CGCRI) KolkataCentral Institute for Cotton Research NagpurCentral Leather Research Institute Adyar, ChennaiCentral Research Institute for Dryland Agriculture HyderabadCentral Sheep and Wool Research Institute AvikanagarCentral Soil Salinity Research Institute New DelhiFluid Control Research Institute KanjikodeHarish Chandra Research Institute (HRI) AllahabadIndian Agricultural Research Institute (IARI) New DelhiIndian Institute of Forestry Research and Education Dehradun, Shimla, Ranchi,

Jorhat, Jabalpur, JodhpurIndian Institute of Pulses Research KanpurIndian Institute of Science Education and Research (IISER) Kolkata, Pune, Mohali, Bhopal,

ThiruvananthpuramIndian Institute of Spices Research KozhikodeIndian Institute of Sugarcane Research LucknowIndian Institute of Natural Resins and Gums (Indian Lac Research Institute) Ranchi

National Institute Of Technical Teachers Training and Research ChennaiIndian Veterinary Research Institute BareillyIndira Gandhi Institute of Development Research MumbaiIndira Gandhi Centre for Atomic Research (IGCAR) KalpakkamInstitute for Plasma Research (IPR) Gandhinagar Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR) Bangalore

National Academy of Agricultural Research Management RajendranagarNational Botanical Research Institute (NBRI) LucknowNational Dairy Research Institute Karnal (Haryana)National Environmental Engineering Research Institute NagpurNational Institute of Construction Management and Research MumbaiNational Institute of Science Education and Research (NISER) BhubaneswarPhysical Research Laboratory (PRL) AhmedabadRaman Research Institute (RRI) BangaloreTata Institute of Fundamental Research (TIFR) Mumbai, HyderabadIndian Institute of Horticultural Research (IIBR) Goa

EXAMPLES

Example 1.   Ram sold a cow for Rs.136 at a loss of 15%. At what price should he have sold it to gain 15%?

Sol: Let the cost price be Rs.100 then for 15% loss the S.P = 85 and for 15% profit it should  be Rs. 115.

         Rs. 85 is the first S.P, then second S.P. = Rs. 115

         Rs. 136 is the first S.P =  

Example 2.   A sells a radio to B at a gain of 10% and B sells it to C at a gain of 5%.If C pays Rs. 462 for it, What did it

cost to A?

Sol: Let the cost price of A be Rs. 100

         Then the cost price of B be Rs. 110 

        

Example 3. A dealer allows 10% discount on the list price of a certain article and yet makes a profit of Rs. 25% on

each article. Find the cost price of the article when list price is Rs. 50.

Sol:  Let the cost price of articles be Rs. 100

          Then for 25% profit, S.P.  = Rs. 125

          If list price is Rs. 100, S.P.  = Rs. 90

          If S.P. is Rs. 90, list price  = Rs. 100

      

Example 4. A person purchases 90 clocks and sells 40 clocks at a gain of 10% and 50 clocks at a gain of 20%. Had he

sold all of them at a uniform profit of 15% he would have got Rs.40 less. Find the cost price of each clock.

Sol: Let the C.P of clock is Rs. 100 each.

        By the profit of 10% S.P. of 40 clocks =  = Rs. 4, 400

        By the profit of 20% S.P of 50 clocks =   = Rs. 6, 000

        Total S.P. = Rs. 4400 + Rs. 6, 000 = Rs. 10, 400

        C.P of 90 clocks =   = Rs. 9000

        By the profit of 15% S.P. of 90 clocks =   = Rs. 10, 350

        Difference = Rs. 10, 400 – Rs. 10, 350 = Rs. 50

        If the difference is Rs. 50 then C.P. = Rs. 100

        If the difference is Rs. 40 then C.P. =  = Rs. 80

Example 5.  A man buys 5 horses and 10 cows for Rs. 1,600. He sells horses at a profit of 15% and cows at a Loss of

10% if his over all profit was Rs. 90, what was the cost price of a horse and a cow?

Sol:  Let x be the cost price of a horse and y be the cost price of a cow

          C.P. of 5 horses = Rs. 5x and C.P of 10 cows = Rs. 10y

        Hence     5x + 10y = 1,600……..(i)

        Since the profit is 15% on the horses  

   

RATIO AND PROPORTION.  >> Page - 5

4. Two numbers are in 4:7 ratio. The difference between them is 27. What is the bigger number?Sol:  Let the numbers be 4x and 7x.             7x − 4x = 27             3x = 27     x = 9

 Bigger number is 7x = 7 × 9 = 63

Short cut: The difference of the terms of the ratio = 7 − 4 = 3.  But the actual difference between the numbers is 27     3 parts is equal to 27

  7 parts (Bigger number) = × 27 = 635. The ratio of the ages of a man and his son is 7: 3. The average of their ages is 30 years. What will be the ratio of their ages after 4 years?Sol: Average age = 30 yearsTotal age = 2 × 30 = 60 years.Let their present ages be 7x and 3x years

 7x + 3x = 60  x =   = 6 Their present ages are

7 × 6 and 3 × 6 = 42 and 18. Their ages after 4 years

= 42 + 4 and 18 + 4 = 46 and 22 years ratio = 46 : 22 = 23 : 11

6. Two numbers are in the ratio of 3:4. If 4 is subtracted from each, the remainders are in the ratio of 5:7. What are the numbers?Sol: Let the numbers be 3x and 4x.         If 4 is subtracted from each, the numbers will be (3x −4) and (4x −4).

 (3x −4) : (4x −4) = 5: 7Product of means = Product of extremes(3x –4) 7 = (4x – 4) 5

 21x – 28 = 20x – 20 x = 8 The numbers are 3 × 8 and 4 × 8 

                                     = 24 and 32

17. In what ratio the two kinds of tea must be mixed together one at Rs. 48 per kg. and another at Rs. 32 per kg. So

that the mixture may cost Rs. 36 per kg. ?

Sol:   Mohan and Sohan = 5:6  or  

           Sohan and Rakesh = 8:5  or  

        Mohan and Rakesh = 

                                              = 4 : 3

18. What should be subtracted from 15, 28, 20 and 38 so that the remaining numbers may be proportional?

19. If Rs. 279 were distributed among Ram, Mohan and Sohan in the ratio of 15:10:6 respectively, then how many

rupees did Mohan obtain?

Sol: Ratio in which Ram, Mohan and Sohan got  = 15 :10 : 6

                         Sum of ratios  = 15 + 10 + 6 = 31 

                        Share of Mohan 

                                                         = Rs. 90

20. A bag contains of one rupee, 50 paise and 25 paise coins. If these coins are in the ratio of 2:3:10, and the total

amount of coins is Rs288, find the number of 25 paise coins in the bag.

Sol:   Ratio of one rupee, 50 paise and 25 paise coins

                                                                 = 2:3:10

                         Ratio of their values  = 8:6:10 = 4:3:5

 And sum of the ratios of their values = 4 + 3 + 5 = 12

                      Value of 25 paise coins  

= Rs. 120

                       No. of 25 paise coins   = 120 × 4 = 480                       (Writer - G.S.Giridhar)

Number System...  >> Page - 7

2. One-seventh of a number is 51. What will be 64% of that number?       (SBI 2008)    (A) 248.12          (B) 228.48           (C) 238.24          (D) 198.36             (E) None of theseSol:    

                        hence answer (E)

3. If (16)3 is subtracted from the square of a number, the answer so obtained is 3825. What is the number ?      (SBI 2008)    (A) 69              (B) 59                     (C) 89                    (D) 79                   (E) None of theseSol: Let the number be x           x2− 163= 3825  x = 89         hence answer (C).4. If (92)2 is added to the square of a number, the answer so obtained is 10768. What is the number?          (SBI 2008)      (A) 46            (B) 2304                (C) 48                    (D) 2116              (E) None of these

3. When 40% of first number is added to the second number the second number becomes 1.2 times of itself. What is the ratio between the first and second numbers?   (A) 2:3                  (B) 4:3                     (C) 1:2                  (D) 5:7          (E) None of theseSol: Let the first and second number be x and y

          

AVERAGE...  >> Page - 2

Example 2.  A man has 7 children. When their average age was 12 years, the child who was 6 years of age, died.

What was the average age of surviving children 5 years after the death of the above child?

Sol: Average age of 7 children  = 12 years

       Total age of 6 children  =  12 × 7 = 84 years

       Total age of 6 children after the death of a child aged 6 years = 84 – 6 = 78

       Hence   the average age of the surviving children =        After 5 yrs. = 13 + 5 = 18 yrs.

Example 3.  If the weights of 5 students of a class are 49.6 kg, 39.8 kg, 45.2 kg and 24.6 kg respectively then what is

their average weight?

Sol: Total weight of 5 students = 49.6 + 39.8 + 40.8 + 45.2 + 24.6

                                                      = 200 kg.

      Their average weight =   

                                                = 40 kg.

Example 5.  A train covers the first 16 km at a speed of 20 km per hour another 20 km at 40 km per hour and the last

10 km at 15 km per hour. Find the average speed for the entire journey.

Example 6.  A vehicle travels from A to B at the speed of 40 km/hr, but from B to A at the speed of 60km/hr. what is

its average speed during the whole journey?

Sol: Let the distance from A to B be x km

     

Example 7.  The average age of a class of 40 boys is 16.95 years. A new boy joins the class and the average age now

is 17 years. What is the age of the new boy?

Sol:  The average age of 40 boys  = 16.95 years

                 Total are of 40 boys  = 16.95 × 40

                                                          = 678 years

        The average age of 41 boys  = 17 years

                 Total age of 41 boys  = 17 × 41

                                                         = 697 years

                  Age of the new boy  = 697 – 678

                                                         = 19 years

                                                              

PARTNERSHIP...  >> Page - 3

EXAMPLESExample 1:   A, B and C enter into partnership. A contributes one-third of the capital while B contributes as much as

A and C together contribute. If the profit at the end of the year amounts to Rs. 840 what would each receive?

Sol:  As A contributes one-third of the capital 

            A’s profit =     = Rs. 280

   Now as B contributes as much as A and C

  So Profit of B  = Profit of A + Profit of C =  Rs. 280 + Profit of C

                           Profit of B – Profit of C =  Rs. 280

                    And   Profit of B + Profit of C =  Rs. 840 – Rs. 280

            Adding  2 Profit of B  = Rs. 840

                              Profit of B  = Rs. 420

Hence   Profit of C  = 840 – 420 - 280

                                 = Rs. 140

Example 2:  A is working and B is a sleeping partner in a business. A puts  Rs. 5, 000 and B puts in Rs. 6, 000. A

receives 12 ½ % of the profit for Managing  the business and the rest is divided in proportion of their capitals. What

does  each get out of a profit of Rs. 880?

Sol: The amount, which A receives for managing

                                       = 12 ½% of Rs.880

                                     

         The amount left = 880 – 110 = Rs. 770

         The amount left is to be divided in the ratio = 5,000 : 6,000 = 5: 6

      

         Total share received by A = 110 + 350 = Rs. 460

         Share received by B = Rs. 420

Example 3:  A and B enter into a partnership. A contributes Rs. 5000 while B contributes Rs. 40000. After 1 month B

withdraws  1/4 part of his contribution and after 3 months from the starting A puts Rs. 2000 more. When B

withdraws his money at the same C also joins them with Rs. 7000. If at the end of 1 year there is a profit of Rs. 1218,

what will be share of C in the profit?

Sol:  Since the contributions of three partners are different and their times also differ. Therefore, their contributions

should be converted for equal durations. For this, contribution is multiplied by time.

      Contribution of A = Rs. 5000 for 12 months + Rs. 2000 for 9 months

      Contribution of A for 1 month 

                    =  5000 × 12 + 2000 × 9

                    = 60000 + 18000

                    = Rs. 78000

        Contribution of B = Rs. 4000 for 1 month +   of Rs. 4000 for 11 months

    Contribution of B for 1 month

                                          = 4000 × 1 + 3000 × 11 

                                         = 4000 + 33000 = Rs. 37000

Contribution of C  = Rs. 7000 for 11 months

        Contribution of C for 1 month  =  7000 × 11 

                                                             = Rs. 77000

        Ratio in their contributions  = 78000:37000:77000

                                                            = 78:37:77

                     Sum of their ratios   = 78 + 37 + 77 = 192

                Share of C in the profit =                                                            = Rs. 488.47

Example 4: Alok started a business by investment of Rs.90000 after 3 months Pranav joined him with an investment

of Rs. 120000. If they had a profit  of Rs. 96000 after 2 years then what is the difference in the shares of two?

Sol:  Alok’s investment for 1 month  = 9000 × 24 = 2160000

         Pranav’s investment for 1 month  = 120000 × 21= 25200

         Ratio of their investment   = 6:7

          

Example 5: A, B and C started a business in partnership. A invested Rs. 25 lacks and after 1 year he invested Rs. 10

lacks more. B invested Rs. 35 lacks in the beginning and withdrew Rs. 10 lacks after 2 years. C invested Rs. 30 lacks.

What is the ratio of their profit after 3 years?

Sol:  A’s investment  = 25 × 3 + 10 × 2

                                      = Rs. 95 lacks

         B’s investment  = 35 × 2 + 25 × 1

                                     = Rs. 95 lacks

        C’s investment  = 30 × 3

                                    = Rs. 90 lacks

   Ratio of their investment  = 19:19:18

   Ratio of their profit = 19:19:18 (because time period is same, i.e., for 3 years)

Example 6:  A, B and C investment in a partnership in the ratio of 5:6:8. Ratio of their profit is 5:3:12. Find the ratio

of time for their investment.

Example 7:  Three people A, B and C invested money in a partnership in the ratio of 4:2:8 ratio of their time of investment is 3:3:2. What is the ratio

of their profit?

Sol:  Required ratio = 4 × 3 : 2 × 3 : 8 × 2

                                    = 12 : 6 :16

                                    =  6 : 3 : 8

SIMPLE AND COMPOUND INTEREST 

      ¤ Interest is the additional money paid for the usage of a certain amount.      ¤ The amount borrowed is called the principal.      ¤ The sum of interest and principal is called the amount.Simple Interest      If the interest is calculated on same amount of money it is called the simple interest (S.I.).      Simple Interest will be the same for all the years.     If P is the principal, R is the rate of interest, T is time and S.I. the simple interest, then

                       Note: Simple interest is always calculated on principal. Therefore simple interest is equal for every period.

e.g: 1. What would be the simple interest obtained on an a amount of Rs. 6850 at the rate of 6 p.c.p.a. after 3 years?(A) Rs. 2423     (B) Rs. 1233          (C) Rs. 1633     (D) Rs. 1525    (E) None of theseSol: Here P = Rs. 6850,     T= 3 years and     R = 6%

          

                   Hence answer is (B)2. How long will it take for Rs. 1250 to become Rs. 1600 at 7% per annum simple interest?       (A) 5 years            (B) 3 years          (C) 4 years         (D) 6 years     (E) None of theseSol:       

            

               Hence Answer is (C)                  3. What would be the amount on Rs. 8250 for 4 years at 15% per annum simple interest?     (A) Rs. 13200    (B) Rs. 12300        (C) Rs. 10450        (D) Rs. 11200   (E) None of these

SOl:   

               

Shortcut: for one year, rate of interest is 15% and for 4 years it is 15×4 = 60% The Amount will become 160% If 100% Money = 8250,

           Compound Interest:    Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods.    If A is the amount, C.I. is the compound interest, P is the principal, R is the rate, and Tis the time, then 

                                   

                            e.g: What is the compound interest accrued on an amount of Rs. 8000, at the rate

of 6%p.a. at the end of 2 years?      (A) Rs.2545      (B) Rs.2,257.20         (C) Rs.2986   (D) Rs.2775.40    (E) None of these

Sol:        

               Shortcut:  Amount = 106% of 106% 8000 =  8988.80                         C.I. = 8988.80 - 8000 = Rs. 988.80Note: 1. If the interest is paid half yearly, time is doubled and the rate is halved.            2. If the interest is paid quarterly, time becomes 4 times and the rate becomes onefourth

e.g: What is the interest accrued on Rs.12000 for one and half year at 4% p.a. compoundedhalf yearly?

Difference between Simple and Compound Interest     Difference between Simple Interest and Compound Interest can be calculated by usingformulae.     There is no difference between Simple and Compound Interest for one year. For 2 years

                        

e.g: 1. What is the difference between Simple and Compound Interest for two yearson Rs. 24000 at 7% rate?

Sol:    

                                   = Rs. 117.602. On what sum does the difference between Simple and Compound Interest for 3 yearsat 5% rate will be Rs. 244?

Sol:       

            Some other Models of Questions:1. A sum of money will become Rs. 8060 in 4 years at 6% per annum simple interest. Findthe sum.

Sol:        

           Shortcut: For one year, rate of interest is 6% and for 4 years it is 4 × 6% = 24% Then the amount will become 124%If 124% money is Rs. 8060, 100% money will be  × 8060 = Rs. 6500

4. A certain sum of money invested at compound interest doubles in 3 years. In howmany years will it become 6 times itself?Sol: Let the money be Rs. x It becomes Rs. 2x in 3 years As this is compound interest, 2x will be the principal for next period. Therefore, 2x will become 4x in next 3 years hence Rs. x will become 4x       i.e. 4 times in 3 + 3 = 6 years5. A man deposits Rs. 12600 in a bank at 5% annual interest. After 8 months he withdrawsRs. 5400 together with interest and after 4 months the remaining money. How much does he get as interest at the end of the year?

Sol: S.I. of Rs. 12600 for 8 months

                       He withdrew Rs. 5400 together with interest, the remaining amount                        = 12600 - 5400 = Rs. 7200         

S.I. on Rs. 7200 at the rate of 5% for 4 months                                

            Total interest = 420 + 120 = Rs. 540