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3721 items in total found

Working Papers | 1978

Accounting for Inflation - An Empirical Study

Gupta Ramesh

In recent years, there has been increasing criticism of financial statements prepared under the long-established cost conventions. The accounting profession all over the world has been debating various approaches to accounting for inflation. In this paper, we have attempted to restate the earnings of 57 companies adjusted for inflation and study its impact on relevant financial ratios. This article is in continuation to our earlier Working Paper No. 235.

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Working Papers | 1978

Research Reports - Publishing at What Cost and Quality?

Rao S Sreenivas and Srivastava Uma Kant

By using a better reproduction technology than duplication and by having a judicious mix of alternatives, an educational/research institution can produce better research reports than it does now and that too at a lesser cost. Better marketing and pricing of the reports will not only recoup the initial investment but will also help in atleast not losing money. Hopefully, better presentation and larger dissemination will provide an incentive to the researchers to improve the substantive quality of their output. Another contribution is the easing of the pressure on the demand for paper, which is of some national significance. The four criteria-speed, accuracy, presentability, and cost-on which the mix reproductive technology is justified for educational institutions are relevant to other organizations like government and business offices. The use of mixed technology by other organizations also will have substantial impact on reducing the reproduction costs. However, the four criteria could be better satisfied if supervisors of reproduction units, communication specialists, and layout artists constantly apply these criteria to each job on hand. The strategy of mixed technology will get a boost if the Indian manufacturers can fill up two gaps that exist in using such a mixture. The first gap can be filled by increased production, sales, and servicing of electric typewriters. If at a later stage, varitypewriters and justowriters coule be introduced, it would be a boon for small institutions which cannot incur heavy initial capital costs of having hot metal composition, and large organizations like the government and business offices, which cannot go in for outside composition for reasons of confidentiality and speed. The other gap can be filled in by producing automatic plats transference equipment for linking the chain in the process of transferring images from paper to metal masters for use on baby offset machines.

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Working Papers | 1978

Inflation Accounting in India - A Case Study of the Bharat Heavy Electricals Ltd.

Gupta Ramesh

In the last decade, a considerable amount of research has been done justifying the need to introduce inflation accounting in reporting the financial results of a business unit. In this paper, I have reviewed the recent developments in inflation accounting and the role played by the accounting professional bodies in the U.K. and U.S.A. The role of our two accounting bodies in India has been one of dismay. In reporting Current Cost Accounts, Indian corporations have not been very forthcoming either. The BHEL is the only company which has been keeping up with the international developments. In this paper, a detailed study of the BHEL Current Cost Accounts (CCA) for the year 1976-77 has been made. Each major item of the CCA is analysed in depth, evaluated in the context of ED-18 provisions. The various related issues are deliberated upon providing an appropriate conceptual framework. The BHEL CCA has been presented according to the provisions of "An Interim Recommendation" which came into force much after the publication of its 1976-77 annual report. In the last, the BHEL profitability on historical cost and CCA basis has been evaluated.

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Working Papers | 1978

Some Methodological and Practical Aspects of Accounting the Returns from Clearfelling Natural Forests in the Evaluation of Intensive Forest Development Projects

Gupta Tirath

The Forest Development Corporations (FDCs) in India have the responsibility of formulating and implementing intensive forest development projects for their respective areas. Since the FDCs operate on the lands currently under natural forests, it is important to decide on the procedure for handling the net returns from clearfelling the natural stands in the project area. The forest development projects prepared under the State Planning Programme included the net returns from clearfelling the natural forests with the benefit streams of man-made forestry. The National Commission on Agriculture, a n umber of foresters and economists have agreed with this procedure. The paper has summarised the arguments behind this procedure. These arguments have been examined and found inconsistent with the generally accepted practices of economic analysis. More importantly, the NCA appears to have contradicted itself while accepting the procedure used in the projects formulated under the State Planning Programme. Some real life problems that have arisen due to this procedure have also been discussed. As an alternative, it is suggested that the returns from natural forests on the project areas be treated as capital assets with the FDCs. The concerned State Government(s) may be deemed to have subscribed to the equity capital of the corporation(s) and when the natural stands are clearfelled and the returns received. This procedure is considered to be conceptually consistent and is expected to save some embarrasment to the FDCs.

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Working Papers | 1978

Some Natural Resource Management Aspects of Commercial Cultivation of Hybrid Eucalyptus in Gujarat: India

Gupta Tirath

The paper has presented the results of financial analysis of a 160 acres eucalyptus farm in Ahmedabad District. The soil on the farm is sandy loam type and the water is brackish. The fixed capital investments in the business were estimated at Rs. 400 thousand. The analysis supported the conclusions that, in certain situations, (i) individual farm entrepreneur may expect significantly higher returns by practising tree-culture than crop-culture, and (ii) forestry activity with fixed investments averaging Rs. 2,500 or more per acre may prove to be much more economical than with lesser or no investments. Based on these conclusions, the need for involving farm firms in the task of bringing culturable waste lands under trees has been stressed.

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Working Papers | 1978

A Framework of Information System for Development Planning

S. C. Bhatnagar

In the context of the recent emphasis on unit level planning, the need for designing a Management Information System that would support the planning process is discussed. A framework for the MIS design is evolved which consists of the identification of key development indicators, analysis of information using these indicators, and the structuring of information for regular and meaningful use in the planning process. Some of the key indicators at the village level that have been suggested are : the per capita wage income, the value of agricultural produce per unit area, and the indicators relating to the availability and capacity of infrastructural facilities. The entire framework is illustrated by using sample data that was collected from 24 villages in Gujarat.

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Working Papers | 1978

Accounting for Changing Prices: Recent Developments

Gupta Ramesh

With the rejection of ED-18 on July 6, 1977, the longest running epic of the financial world "Inflation Accounting" has come to a standstill where U.K. accounting profession is living with "An Interim Recommendation" and the U.S. (through its SEC requirements) is content with disclosure of fragmented and piecemeal information about replacement cost. Accounting profession in India seems to be watching the debate will all curiosity and excitement. I wonder whether the professional accounting bodies here are just playing the role of spectators or sitting on the fence watching the developments in other countries before adopting any particular method for correcting inflationary effect on our financial statements. Nevertheless, we cannot remain inactive too long. It is high time for our accounting bodies to begin providing a platform to thrash out the problem and for our corporations to experiment with suggested methods. This paper seeks to examine and review critically the various stages in development of the concepts and practices of accounting for changing prices. SSAP 7, Sandilands, Morpeth (ED-18) and finally the Accounting Standard Committee's current "Inflation Accounting-An Interim Recommendation" are critically examined and evaluated. Managerial use of the suggested inflation- adjustment method is highlighted by a case study-"Management Reporting System in Hindustan Lever Limited."

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Working Papers | 1978

A Preliminary Report on Marketing Theory and its Relationships to Social Enterprises

Dholakia Nikhilesh

This paper is a review and critique simultaneously of marketing theory and social enterprise marketing. The scope, structure and aims of marketing theory are examined. It is shown that many structural weaknesses of the marketing theory stem from the limitation of its scope and aim to private enterprises. While marketing theory thus remains weak and stultified, the marketing or marketing-like activities of social (non-private) enterprises are performed without adequate theoretical backup. Particular and general forms of social enterprise marketing are examined to assess theoretical requirements of such marketing forms. An approach to the development of a theory of social enterprise marketing - and thereby also the development of a more universal marketing theory-is presented.

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Working Papers | 1978

An Approach to the Design of Corporate Identity

Dholakia Nikhilesh and Bhandari L C

The corporate form of organization is being used in many spheres of economic and social activity. Public enterprises and development corporations have swelled the ranks of the mass of existing private sector companies. All corporations face the problem of evolving, establishing and utilizing a corporate identity. This paper discusses the objectives of corporate identity programmes and an approach to develop such programmes. The effectiveness of selected corporate identification symbols is assessed by a pilot empirical study. Inferences are drawn from this study regarding improvement of corporate identity programmes.

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Working Papers | 1978

Formulating Public Policy for Distribution of Essential Goods: An Analytical Approach

Bhandari L C, Dholakia Nikhilesh, Khurana Rakesh, and Vora M N

Public Policy concerning distribution of essential goods of mass consumption has assumed critical importance in several developing countries. In India, such policies have generally been reactive, in response to exigencies of critical situations such as shortages, price rise or deterioration in quality of essential goods. This paper presents a comprehensive, detailed, explicit and et simple approach for formulating a consistent and potentially effective public distribution policy. A systematic model of distribution policy is presented in which starting from the consumption needs of society, the mix of policy instruments (both structural and non-structural) likely to achieve the policy objectives most effectively can be derived. The model outlines relationships between consumption needs, elements of the distribution systems, commodities and their characteristics, policy instruments, and policy objectives. The approach begins with analysis of consumption, production and product characteristics of relevant commodities on the one hand and identification of possible policy instrument on the other. An analysis of characteristics of commodities enables one to examine the relevant of various policy objectives for these commodities. By matching policy instruments with policy objectives, degree of effectiveness of policy instruments for given objectives is established. By this analysis, it becomes feasible to derive the potentially effective mix of instruments for each commodity. The approach also helps in identifying needs for modifying instruments and/or commodity characteristics for achieving policy objectives. The approach was tested on six policymakers belonging to different ministries of the Government of India and its agencies, using commodities like wheat, pulses, edible oil and soap. The approach could be used by policy makers without difficulty, it was found to be more useful with commodities like pulses and soaps, which were relatively new for policy intervention. Policy makers felt that it was also a potentially useful training device for officers taking assignments in these areas.

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