CA-Foundation - BCK Notes - YV - 19 - 669763f7f6724bdfbd86 - 220902 - 101911

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CA-Foundation - Business and Commercial Knowledge
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Business & Commercial Knowledge www.Indigolearn.com PAGE 1
Table of Contents
Introduction to Business & BCK 3
Business Environment 9
Business Organisation 17
Government Policies for Business Growth 78
Organisation Facilitating Business 85
Common Business Terminologies 94

INTRODUCTION TO BUSINESSES AND BCK
Introduction to BCK
BCK stands for Business & Commercial Knowledge. It contains infinite knowledge about the field
of business and commerce. It includes wide range of business activities comprising of manufacturing,
trading, services etc.
Business and commercial knowledge is huge in scope and coverage; derives its ideas from various
methods like market, law, economics etc.; and is constantly developing and growing.
BCK is immensely important for a Chartered accountant as it helps him in understanding theories and
concepts of various business operations and different shades of a company. It assists a Chartered
accountant in every field of his work may it be practice or audit or consultancy.
Economic & Non Economic Activity
Economic activities are mainly focused and directed towards making a living and paying for basic
necessities of life. All economic activities are performed by an individual because of his self-
interest or expectation of some economic benefit or consideration. The reach and range of each
and every economic activity is always related to time, money and material resource. Real motive of
each & every economic activity is to earn or gain something.
An economic activity performed without the expectation of any economic benefit or
consideration can be termed as Non-Economic activity. These activities are focused and related
to various grounds like love, affection, passion, charity etc. Main motive of any non-economic activity
is social or psychological concern towards any living being.
Example: - If a person plays a musical instrument just because it is his hobby or he likes it, then
such an activity can be characterized as non –economic activity. On the other hand, when the
same person plays musical instrument in a concert or event for a consideration, then such activity
will be classified as economic activity.
Distinguishing Characteristics of Economic Activities
• Economic activities are income generating and always imparts a person with
monetary or non-monetary consideration. Various factors of production like land,
labour, capital and entrepreneurship earns economic benefit or return for their
factor services in the form of rent, wages, interest and profit respectively according
to their contribution to production.
Example: - Earning salary income from job or profit by doing business.

• Economic activities are productive in nature and refers to supply part of
economics which directly relates to those concerns who supplies goods and services
in the market like manufacturers, wholesalers, retailers etc.
Production may be done either for self-consumption or for consumption by others.
• Consumption is an economic activity and relates to demand side. Buyer spends his
money in buying goods and services which are ultimately being consumed by him.
• Savings refers to that part of income which is left after spending money for
consumption activities. Savings leads to investment and investment leads to
creation of wealth. A part of income saved by a person is invested by him through
various channels like making fixed deposits in banks, investing in mutual funds,
buying shares from stock market etc. Any investment made by a person grows and
accumulates and thereby creates wealth for that person.
Business-Meaning & Definition
Business may be defined as an economic entity who is engaged in the process of economic
activities comprising of buying, producing, trading or selling of goods and services so as to earn
income or profit. The term ‘Business’ can also be classified as set of activities which are part of any
industry, trade or organization primarily focused towards derivation of profit. In business process or
activities, sellers are those persons who sell and trade their goods and services in the market (e.g.
manufacturers, suppliers, wholesalers, retailers, distributors, service provider etc.) and buyers are
referred to those persons who buys goods or services from the market.
Entity wise example of few categories of businesses are: - Industry -Hotel Industry; Company -
Tata Motors; Retail business - any retail shop or retail store; Service business – a restaurant or a
CA firm etc.
Characteristics of Business in relation to Economic Occupations
A distinctive characteristic of business in relation to occupation is that any person, irrespective of

the fact, whether he possess any specific qualification or not (e.g. qualification of doctor, engineer,
CA, lawyer etc.), is free to do certain businesses or trade without any restrictions.
On the other hand, certain specified professions can be performed or carried on only by a qualified
person of that trade or profession.
(For e.g. to practice as a doctor, specific education qualification is compulsorily required).
Brief description of two occupations are given below:-

• Employment: -
The term employment usually refers to contractual relationship between two parties
mainly referred to as Employer and Employee, in which an employee agrees to perform
and execute certain sets of activities as defined by the employer in exchange for a
consideration which is usually given in the form of salary or wage. Employment is generally
considered neither as a profession nor as a business.
Example: - A person is working in Reliance Industries as per a defined contract and is
providing his services as an employee to the company and compensation in the form of
salary is being received by the employee from the company(i.e. Reliance Industries) for
his services.

• Profession: -
The term Profession refers to supply of certain specific services to an individual,
organization or company for which a prescribed qualification is mandatorily required.
Example: - To practice as a Chartered Accountant (CA) in India, a person must be a
member of Institute of Chartered Accountants of India (ICAI) and must also possess a valid
Certificate of Practice.
Major differences between Business, Profession & Employment
Business Profession Employment

Business is classified as set Profession refers to supply The term employment
of activities which are part of specific services to an usually refers to
of any industry, trade or individual, organization or contractual relationship
organization primarily company. between two parties mainly
focused towards derivation referred to as Employer and
of profit. Employee.
For doing business no For profession, a prescribed Qualification may or may
formal qualification is qualification is mandatorily not be required in case of
required. required. employment. Moreover
qualification requirement
varies from one job to
another job and changes
with change in industry.
Ethics, rules and Rules and ethics are Employer defines rules and
regulations are framed by defined for a member by regulations for the
owner of the business. the governing body of that employee.
particular profession.
A business owner is free to Freedom is confined and Freedom for an employee is
perform any activities as limited within the extremely less and
per his will and choice. boundaries of a restrictive.
professional body governing
that particular profession.
Business can be Profession cannot be Employment also cannot be
transferred. transferred. transferred.
Distinguishing Characteristics of a Business
(1) Business creates jobs: -

A very unique feature of business that distinguishes it from occupation is that business
helps in creation and generation of numerous number of jobs in comparison to
profession.
(2) Provides momentum to economic growth: -

An ‘Entrepreneur’ is defined as a creative, innovative and risk taking person who
sets up a business and controls its operations and activities in order to earn profit.
Businesses established by an entrepreneur boosts Gross Domestic Product (GDP) of a
country and directly helps in achieving economic growth and economic development.
(3) Investment Intensive: -

Setting up of any business primarily requires substantial amount of capital and
investment which varies as per size and scale of business.

In India, classification of businesses as per their size and scale of operations are as
follows:-
➢ Micro Businesses: -
Extremely minute in size with very few business activities.
E.g. Small retail shop.
➢ Small Businesses: - Larger than micro business entity but still smaller in size
with limited business operations.
E.g. A wholesaler of goods.
➢ Medium Businesses: -
Average in size with several business activities.
E.g. Distributor of goods.
➢ Large Businesses: -
Enormous in size and have massive range and types of business activities.
E.g. manufacturing entity like Reliance Industries, Tata Group etc.
(4) Gestation & uncertainties: -

Formation and establishment of a business as well as commencement of receiving
returns from investments made in such businesses takes significant and considerable
time period. Moreover it is always uncertain whether such built businesses will hatch
positive returns or not.
(5) Systematic, organized, efficiency oriented activity:-

Business functions, operations and activities are interrelated and interdependent to
each other and are carried out in a very organized, skillful and effective manner.
(6) Objective oriented/Purposeful: -

All sets of activities of a business are always focused and directed towards achieving a
desired goal or purpose.
Different types of objectives of a business are as follows:-
➢ Economic objective and motive of any business is to earn profit, income,

dividends etc.
➢ Organic objectives of any business is long term survival, perpetual growth and
sustainability.
➢ Social objectives and responsibilities of a business are primarily focused
towards people and society. Various benefits in the form of education,
healthcare, fair treatment to employees and customers etc. are rendered to
people of the society by a business entity.
➢ Legal objectives refers to adoption of fair business policies and conducting
business operations with honesty and integrity.
➢ Environmental objectives refers to use of natural resources of the
environment in a sustainable and efficient manner.

Forms of Business Organisations
Ownership of a business refers to collection of rights which a business owner possess. Business
ownership occurs by investment of capital. Profits of a business are being enjoyed by the owner.
Similarly losses are also borne by the owner of the business. Ownership of business can also be
transferred in certain types of businesses.
Various forms and types of businesses with respect to ownership are discussed below:-
• Sole Proprietorship Business :-

➢ This type of business is owned and controlled by a single person.
➢ Risk, rewards and liability of a sole proprietorship business solely vests with the
single owner of that business.
➢ Entire capital which is required for running the business is being pooled and
invested by the sole proprietor himself.
➢ This type of businesses are usually very small in size having very few business
activities.
➢ Liability of the owner is unlimited.
➢ Sole proprietorship business fall in the category of unorganized business sector of
an economy. This type of business can be transferred or sold to other person or
business entity.
➢ E.g.:- Owner of a retail shop, restaurant etc.
• Hindu Undivided Family( HUF) Business :-

➢ Hindu family includes Buddhist, Parsis, Jains and Sikh family.
➢ Only a person who is born or married in a HUF can become its member.
➢ Members of HUF collectively owning a business is called as HUF business or Joint
family business.
➢ Business is controlled and managed by a person termed as ‘Karta’ who is commonly
referred to as the head of the family.
➢ The family members are called as co-parceners or co-owners and each of the co-
parceners are having some percentage of share in the HUF business.
➢ There is ease of management and pooling of funds in HUF business. Decision making
process is also smoother and faster in this type of business.
➢ Liability of the Karta is unlimited.
➢ Ownership can be transferred by ‘Will’ or by ‘Law of Inheritance’.
• Partnership Business :-
✓ In a partnership business, two or more partners come together for doing business
under a ‘Partnership Agreement’ or ‘Partnership Deed’.
✓ Business can be carried on by some partners (also called as active partners) or may
be carried out by all the partners of a partnership firm.
✓ Pooling of funds for doing business becomes easier due to the presence of multiple
partners.
✓ Risk and reward is divided amongst all the partners equally or as per partnership
agreement. Minor partners are entitled only to the profits of the firm.
✓ Liability of partners are joint, several and unlimited.
✓ Partnership ends as soon as the agreement is cancelled or when a partner leaves
the partnership firm.
✓ Mutual agency is an essential feature of a partnership firm according to which every
partner works in common interest and in the interest of the firm.

• Limited Liability Partnership (LLP) Business:-
➢ Liability of partners in an LLP business is limited.
➢ Partner represents only the firm in their individual capacity and is liable solely for
firm’s actions.
➢ Incorporation of an LLP firm is mandatory under Limited Liability Partnership Act,
2009.
➢ Additional legal formalities and compliances needs to be done in case of an LLP.
➢ LLP is a distinct legal entity separate from its partners.
• Business in the form of a Company

➢ Company is an entity or organization which has perpetual existence and is a
separate legal entity distinct from its members/owners.
➢ Liability of members of a company is also limited.
➢ Huge capital can be raised from various sources by a company form of organization.
➢ It is most suitable form of business organization for doing large business.
➢ Ownership persons and management members (i.e. board of directors) of company
are usually different.
➢ A company needs to be registered compulsorily under Companies Act 2013.
➢ Memorandum of Association (MOA) & Articles of Association (AOA) defines the scope
and objectives of the business operations of a company.
➢ Members and owners of a company are allotted shares of the company and these
shares are transferable in nature.
➢ Shares of a company can be listed on stock exchange which in turn provides
liquidity to its members/shareholders who hold those shares.
➢ Members of a company are also entitled for right to vote.
Different types of Companies and their essential features are as follows:-
Public Company Private Company One Person Company

Minimum 7 members are Minimum 2 members are Only one person can be a
required. required. member of one person
Public company can have Maximum no. of members company.
unlimited members. in a private company is
200.
Can be listed on a stock Cannot be listed on a Cannot be listed on a

exchange. stock exchange. stock exchange.
Legal compliances are Legal compliances are Legal compliances are
high. less. very less.

BUSINESS ENVIRONMENT
Introduction
A business is an enterprise that provides products or services desired by customers.
In this constant changing business environment, survival of any business depends mainly on
two factors namely-
(i) Ability of a business to grow and prosper,

(ii) Ability of a business to adapt and respond to changes
Examples of businesses which survived, sustained and responded positively to change are
Tata Group, Bombay Dyeing Company etc.
Meaning of Business Environment
Business environment comprises of factors that effects the functioning of any business-like
external forces, decisions, strategies and any other impacting factors within or outside an
organisation.
- The success of any business highly depends on business environment.

- Businesses must identify these conditions and respond positively towards them.
- A proper response enables a business to function smoothly and enables growth and
success
Characteristics of Business Environment
(i) Complex Environment: -

It is very difficult to understand various conditions & factors affecting a business
and responding to them in a positive way.
(ii) Dynamic Environment: -
Constant and continuous change in business environment highly affects an
organisation and its functioning.
(iii) Multi- Faceted Environment: -
There can be multiple views for a single change by a business. For some
businesses the change can turn out to be very favorable and can be viewed as an
opportunity whereas for some it can pose serious threats for its survival.
(iv) Far Reaching Impact: -
A very small change in business environment can affect the function and process
of an organisation very deeply. So every change whether small or big must be
assessed very carefully so as to neutralise its negative impact.

Importance of Business Environment
(i) Identifying Opportunities for & Threats to the business.

(ii) Identifying areas of growth and expansion for an organisation
(iii) Never ending learning and motivation of the managers and other employees are
very significant in the success of an organisation.
(iv) Understanding & responding to needs and demands within and outside an
organisation is a very vital aspect to be looked into for resolution.
(v) Sensing competition and quick reflex towards the same is also important for any
business
(vi) Identifying strength & weakness of an organisation is also important for any
business environment.
Relationship between Organisation and its Environment
Major relationships are outlined below:-
(i) Exchange of Information:-

Information received from external environment are used for planning, decision
making & control purposes. Information’s are also provided to several external
agencies who approaches the organisation for it.
(ii) Exchange of Resources:-
Inputs are procured from external markets and output of product & services
produced are disposed (sold) with the help of external environment.
(iii) Exchange of Influence & Power:-
External environment holds considerable power and influence over the
organisation by virtue of its command over resources, information & other
inputs.
Organisation’s response to its Environment
(i) Administrative response:-

The sum total of organisations mission, objectives, policies and budgets
constitutes administrative response. These responses helps in defining
organisation purpose and key tasks.
(ii) Competitive Response:-
This type of response is mainly associated with profit seeking organisations but
it is applicable to non-profit organisations as well. This type of response helps in
increasing organisations performance.
(iii) Collective Response:-

This mainly relates to increased coordination with other organisations. This
type of response helps in controlling interdependencies among organisations
which include methods such as bargaining, contracting, creating joint ventures
etc.
Environmental Influence on Business.
-Businesses function within a relevant environment and find their way through it. A
successful business has to identify, appraise, and respond to various opportunities and
threats in its environment.
-Business function as a part of broader environment. The inputs and resources obtained
through the environment are converted to output and products. This input-output
exchange activity is deemed to be a continuous process.
-Following are frameworks to understand the environmental influences
• Analysis of the nature of environment

• Identification of environmental influences which will affect organisation
performance
• Focusing towards competition area in which an organisation operates
Utility of Environmental Analysis
It helps in identifying opportunities and responding to them positively. It also assists in

framing strategies and identifying potential threats.
Purpose of Environmental Analysis
• Analyzing changes and responding actively towards them.

• Collecting useful information for strategic decision making.
• Constantly implementing and adopting new ideas and techniques.
Environmental Scanning
Environmental scanning can be defined as the process by which organisations monitor

their relevant environment to identify opportunities and threats affecting their
business for the purpose of taking strategic decisions.
Factors to be considered for environmental scanning are:-
Events: - Events are certain happenings in organization’s environment.

Trends: - Trends are related events which usually suggests a pattern of change in a
particular area.
Issues: - Issues are concerns arising in response to events & trends
Expectations: - Expectations are demands towards a particular concern
Components of Business Environment
Internal Environment:-
Internal environment comprises of elements which influence businesses and are present
within the organisation itself. Example: - Organisation’s management, Employees,
Culture etc.
External Environment:-
External environment comprises of elements which influence businesses and are

present outside the physical boundaries of an organisation. These elements are mainly
beyond the control of an organisation. Example: - Customers, Competitors, Suppliers etc.
Two major types of External Environment are:-
(i) Micro Environment

(ii) Macro Environment
SWOT Analysis
It is a technique used to study and analyse internal & external environment of an

organisation. It mainly focusses on the study of Strength, Weakness Opportunities &
Threats within and outside the environment of an organisation.
Detailed study on Micro & Macro Environment
Micro Environment: - It mainly consists of operating environment of an organisation which

directly affects it on a regular day to day basis. It consists of suppliers, consumers, market
intermediaries etc.
Macro Environment: - It mainly consists of elements prevailing in the economy as a whole.

Due to its vast and huge coverage it is usually beyond the control of an organisation. It
mainly consists of economic, technological, political, legal & socio-cultural dimensions.

Elements of Micro Environment
a. Customers:-
A customer is an individual or business that purchases the goods or services
produced by a business. The organisation cannot survive without customers.
b. Competitors:-
Any person, business entity, organisation or industry which competes with any other
business and is a rival to them is called a competitor. Competition may be direct or
indirect and it shapes businesses.
c. Organisations:-
An organisation is a group of individuals working together to achieve one or more
objectives.
Following elements effects organisations activities: -
▪ Owners: - a person who owns business and enjoy rights and benefits associated and
derived from it is called owner of that business.
▪ Board of Directors: The chief governing body of an organisation or company is

termed as Board of Directors of that entity.
▪ Employees: - They are the persons who work in an organisation collectively towards
achieving organisations goal & objectives.
d. Markets:-
Analysis of market trends & scenarios, price sensitivity, technological and cost
structure should be studied deeply by an organisation.
e. Suppliers:-
Suppliers provide goods or services that are needed by an organisation for its
operation and functioning.
f. Intermediaries: -
Persons such as broker, agents etc. are termed as intermediaries and they
significantly influence the business of an organisation.

Elements of Macro Environment
a. Demographic Environment:-
Demographic environment have great impact on the business of an organisation
and comprises of factors such as age profile, sex ratio, education etc.
Few essential factors of demographic environment are discussed below:-

▪ Population Size: - Factors of population size such as changes in birth rate,
increase or decrease in population, rapid population growth and its
effect on resources and life expectancy plays a major role in
determination of framing of strategies and implementing decisions.
▪ Geographic Distribution:-It means shift of population from one region or

area to another region. Location of population have a significant impact
on the business of an organisation. It helps a business in determination of
availability of workforce and governmental regulations in a particular
location.
▪ Ethnic Mix: - It impacts company’s potential customers and its workforce.
▪ Income Distribution: - Individuals income and purchasing power also

plays a vital role in determining market potential and its framework.
b. Economic Environment: -
Economic environment determines the strength & size of the market.
Following are the factors that affect the economic environment: -
▪ 1. Economic Systems: -
❖ Capitalism: - A capitalist economy is an economy where the laws
of demand and supply operate freely.
❖ Socialism: - Socialism is an economy where means of production
and resources are owned ,controlled and regulated by the state
directly
❖ Mixed Economy: - A mixed economy comprises of characteristics
of both Capitalism & Socialism economy. In this type of economy
control vests in the hands of both private players as well as the
government.
▪ 2. Economic Conditions or Factors: -

It refers to set of economic factors that influence business and operations
of an organisation. Example: Gross Domestic Product, Per Capita Income,
inflation, unemployment etc.

▪ 3. Economic Policies: -
All business activities and operations are directly influenced by the
economic policies framed by the government from time to time. Some
important economic policies are: -
❖ Industrial Policy
❖ Fiscal Policy
❖ Monetary Policy
❖ Foreign Investment Policy
❖ Export-Import(EXIM) Policy
c. Political-Legal Environment: -
Political & legal environments focus on the possibility for a company to easily
enter or not in a country. It relates to political & legal barriers which a business
face in a given country.
Three important elements in political-legal environment are: -

▪ Government: - Government policies effects and control business in a very
big way. Example:- Tax & duties imposed by government
▪ Legal: - Laws and regulations also influence business operations in a
significant way. Example: - New GST law will influence most of the
businesses.
▪ Political:- Political system & political pressures also influence
organisations business
d. Socio-Cultural Environment:-
Socio-Cultural Environment consists of factors related to human relationship
and the impact of social attitudes and cultural values which effects the
operations of the organisation. Some important factors which influence socio-
cultural environment are Social Concerns, Social attitudes & values, Role of
women & Children in society, educational levels etc.
e. Technological Environment: -
It consists of methods and technology used in the production of goods or
services. Technological changes & advancement have a huge impact on the
business of an organisation.
Technological change, technological innovation, Research & Development etc.
are some of the major factors of technological Environment.

f. Global Environment: -
Almost everything has been globalised now a days. Any change in global markets,
international environment, global cultural environment etc. poses a huge impact
on organisations business. More and more companies are interested in
globalising themselves now a days.
PESTLE Analysis
It is a very simple & quick tool and is mainly used for the study and analysis of macro
environmental factors. It helps management of an organisation in strategic decision-
making function.
PESTLE is an acronym for: -
P- Political
E- Economic
S- Socio-Cultural
T- Technological
L- Legal
E- Environmental
Strategic Response to the Environment

Every organisation should focus towards minimising threats and availing opportunities for
survival and growth of its business. Following approaches may be adopted for achieving the
same:-
▪ Least Resistance: -
Avoiding unnecessary friction with other organisations is very important for
minimising resistance.
▪ Proceed with Caution: -
Smart & calculated moves & measures must be taken before implementation of any
strategy and decision.
▪ Dynamic Response: -
An organisation must develop within itself the potential to convert any threat into
opportunities and must act proactively towards any changes in its environment.

BUSINESS ORGANISATIONS
(A)An Overview of selected Indian Companies
Particulars
Company Adani Ports and Special Economic Zone Ltd
(APSEZ)
Incorporation Year 1998
Ownership Group Adani Group
Founder Gautambhai Shantilal Adani
Headquarter Ahmedabad ,Gujarat, India
Chairman & Managing Director Gautambhai Shantilal Adani
Chief Executive Officer(CEO) Karan Gautambhai Adani
Chief Financial Officer(CFO) Deepak Maheshwari
Business news India’s first port operator to achieve this milestone
and 5th in world
Ranking on Forbes World list 1489th Largest Public corporations List
2021
Key Businesses - Composite network of ports & terminals -
- Industrial land business
- Logistics business
- Dredging and Reclamation solutions
Company Philosophy Adani Ports, India’s largest port company, displays
courage to constantly charter into unexplored
waters and have made “Thinking Big. Doing Better”
a natural philosophy. Be it resources, logistics,
energy or agriculture, the company takes pride in
whatever they do and sincerely believes that they
are doing their part in nation building and touching
the lives of millions of people positively.
Vision: - To be a world class leader in businesses
that enrich lives and contribute to nation in building
infrastructure through sustainable value creation.
Company’s Website www.adaniports.com

Portfolio of Products & Services of Adani Ports and Special Economic Zone Ltd (APSEZ)
Product Ports & Terminals

APSEZ operates ports in Mundra, Dahej, Hazira, Dhamra and Kattupalli and terminals in
Mormugao, Visakhapatnam and Kandla (Tuna-Tekra). The Ennore Container Terminal and
Vizhinjam Port are in construction phase.
Product Industrial Land (SEZ/ DTA/ FTWZ)

Mundra is home to India’s only port-led multi-product SEZ. Mundra has accrued
advantages of an efficient private seaport, logistical connectivity, economic benefits and
allied infrastructure, thereby offering excellent investment opportunities for diversified
businesses.
Product Logistics
Seamless multi-modal logistics solutions are provided right to and from the customers’
premises. Inland Container Depots help ports expand their hinterland connectivity while
private rakes and strategic alliances help in seamless pan-India cargo movement.
Product Dredging & Reclamation

It provides Dredging and Reclamation solutions primarily for port and harbour
construction. It today operates a large fleet of 19 dredgers and boasts of the largest
capital dredging capacity in India.
APSEZ, besides owning dredgers, has a large fleet of support vessels and equipment such
as Multi Utility Crafts, Survey vessels, Floating cranes, Jack up barges, etc.

Particulars
Company Asian Paints Limited
Industry Chemicals - Paints & Varnishes sector
Founders Champaklal Choksey, Chimanlal Choksi, Suryakant Dani
and Arvind Vakil
Headquarter Mumbai , Maharashtra, India
Chairman & MD Amit Syngle
Chief Financial Officer(CFO) R J Jeyamurugan

Ranking on Forbes World list 1536th Public corporations List
2021 232nd Best employer’s List, 2019
Key Businesses - Paints -

- Decorative coatings
- Industrial coatings
- Home Improvement businesses ( bath, kitchen
& wardrobes)
Company Philosophy Its philosophy are based on 5 pillars:- Agility ,People,
Innovation ,Customer-centricity and Integration
Vision :- “To be the fore runner of inspiring decor and
to actively empower customers to create their dream
homes”
Company’s Website www.asianpaints.com

Portfolio of Products & Services of Asian Paints Ltd.
Product Paints
Asian Paints manufactures wide range of paints for Decorative and Industrial use.
Product Decorative & Industrial coatings

In Decorative paints, Asian Paints is present in all the four segments -Interior Wall
Finishes, Exterior Wall Finishes, Enamels and Wood Finishes. It also offers water
proofing, wall coverings and adhesives in its product portfolio.
Product Home Improvement Business

In the Home Improvement and Decor category, the company is present in the Kitchen and
Bath fittings space and offers various products under ‘Sleek’ and ‘Ess Ess’ brand
respectively.

Particulars
Company Axis Bank Limited
Industry Banking, Financial services
Founders Founded jointly by Specified Undertaking of Unit Trust
of India (SUUTI), Life Insurance Corporation of India
(LIC), General Insurance Corporation of India (GIC),
National Insurance Company Ltd, The New India
Assurance Company Ltd, The Oriental Insurance
Company Ltd and United India Insurance Company Ltd
Chairman (Non-executive) Mr. Rakesh Makheja
Managing Director & CEO Amitabh Chaudhry
Chief Financial Officer(CFO) Puneet Sharma
Business news Announced the opening of its Qualified Institutions
Placement (QIP) to raise funds for Rs. 12500 Crores
Ranking on Forbes World list 585th Public Corporations List
2021 254th Best Employer’s List, 2021
Key Businesses - Corporate Banking -
- Retail Banking
- International Banking
Company Philosophy Vision:-To be the preferred financial solutions

provider excelling in customer delivery through
insight, empowered employees and smart use of
technology.
Core Values: - Customer centricity, ethics,
transparency, teamwork and ownership.
Company’s Website www.axisbank.com

Portfolio of Products & Services of Axis Bank Ltd.
Ten wholly owned subsidiaries of Axis Bank Ltd are :-

• Axis Capital Limited
• Axis Private Equity Limited
• Axis Trustee Services Limited
• Axis Asset Management Company Limited
• Axis Mutual Fund Trustee Limited
• Axis Finance Limited
• Axis Securities Limited
• Axis Bank UK Limited
• Axis Securities Europe Limited
• Axis Treds Limited
Services Corporate Banking

Corporate banking solutions comprising of:-
• Credit
• Transaction banking
• Treasury
• Syndication
• Investment banking
• Trustee services
Services Retail Banking

• Personal Banking
• Card services
• Internet Banking
• ATM services
• Depository
• Financial advisory services
• Insurance and non-resident Indian (NRI) services
Services International Banking

The bank continues to offer corporate banking, trade finance, treasury and risk
management through the branches at Singapore, Hong Kong, DIFC, Shanghai and Colombo,
and also retail liability products from its branches at Hong Kong and Colombo

Particulars
Company Bajaj Auto Limited
Industry Automotive
Ownership Group Bajaj Group
Founder Jamnalal Bajaj
Headquarter Pune , Maharashtra, India
Chairman Rahul Bajaj
Managing Director & CEO Rajiv Bajaj
Chief Financial Officer(CFO) Mr. Soumen Ray
Business News Part of advertising campaign ‘ Bajaj Auto – The
World’s Favourite Indian
Ranking on Forbes World list 1620th Public Corporations List
Key Businesses - Two wheeler automobiles
- Three wheeler automobiles
- Low cost cars
Company Philosophy Ethical dealings, transparency, fairness, disclosure and
accountability are the main thrust of the working of
the Bajaj Group
Vision:-To attain world class excellency by
demonstrating value added products to customers.
Company’s Website www.bajajauto.com
Portfolio of Products & Services of Bajaj Auto Ltd.
Segment Two Wheelers – Motorcycles & Scooters

Dominar, Pulsar , Avenger, V12, V15 , Discover, CT 100,
Segment Three Wheelers- Auto Rickshaws

RE Compact, RE Maxima, RE Companct 4S, RE Optima and RE Maxima
Segment Low Cost Cars

Bajaj Qute, Bajaj RE60, etc

Particulars
Company Bharti Airtel Limited
Industry Telecommunications
Ownership Group Bharti Group
Founder Sunil Bharti Mittal
Headquarter New Delhi, India
Chairman Sunil Bharti Mittal
Managing Director & CEO Gopal Vittal
Chief Financial Officer(CFO) Badal Bagri
Business News “Enterprise Data Service Provider of the year” “
Enterprise Telecom Service provider of the year” in
17th edition of the Frost & Sullivan ICT Awards
Ranking on Forbes World list 725th Largest Public Corporations List
2021
Key Businesses - Wireless Services
- Homes Services
- Airtel Business
- Digital TV Services
- Payments Bank
- Tower Infrastructure
-
Company Philosophy Values: - Alive, Inclusive, Respectful.
Objectives: - Its objectives are to grow market share,
grow revenue and drive down cost.
Vision: - Company’s vision is to enrich the lives of
customers. Their obsession is to win customers for life
through an exceptional experience.
Company’s Website www.airtel.in
Portfolio of Products & Services of Bharti Airtel Limited
Services Telemedia
Broadband internet access through DSL, internet leased lines, MPLS solutions, IPTV and
fixed line telephone services
Services Digital television

Direct-to-home (DTH) TV services

Services Enterprise
End-to-end telecom solutions to corporate customers and national and international lon-
distance services to telcos through its nationwide fibre optic backbone, last mile
connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth
access through the gateways and landing stations
Services Mobile data service

USB Modem, Airtel Datacard, etc.
Services Enterprise Business Solutions

GPRS Based solutions like mobile applications tools for enterprise, TrackMate, automatic
meter reading solutions etc. and the other is SMS Based Solutions like interactive SMS,
Bulk SMS, inbound call centre solutions
Particulars
Company Bharat Petroleum Corporation Ltd.
Industry Oil & Gas
Ownership Group Government Of India
Headquarter Mumbai, Maharashtra, India
Chairman & Managing D Rajkumar
Director
Chief Executive Officer K Padmakar
(CEO)
Director – Finance Neelakantapillai Vijayagopal
Business News “Golden Peacock award 2018” for “Excellent
corporate governance”
INDIA MANUFACTURING EXCELLENCE AWARDS
2018
‘Star PSU’
Ranking on Forbes World list 792nd Largest Public Corporations List
2021

Key Businesses - Fuels & Services
- Bharat Gas
- MAK Lubricants
- Aviation
- Refineries
- Gas
- International Trade
- Pipelines
Company Philosophy Values: - Trust, Customer Centricity,

Development of people, Ethics, Innovation,
Collaboration, Involvement.
Vision: - The company leverages talent and
technology and exploit profitable growth
opportunities outside energy
Mission: - Participate prominently in nation-
building by meeting its growing energy needs
and to pursue the creation of economic
surplus by efficiently deploying all available
resources and aiming towards global
competitiveness in the energy sector.
Company’s Website www.bharatpetroleum.com
Portfolio of Products & Services of Bharat Petroleum Corporation Ltd.
Businesses SBUs ( Strategic Business Units)

The company business is divided in seven SBUs (Strategic Business Units) like Retail,
Lubricants, Aviation, Refinery, Gas, I&C and LPG. They have popular Loyalty Program like
Petrocard, Smartfleet.
Businesses Refineries
• Mumbai Refinery
• Kochi Refineries
• Bina Refinery
• Numaligarh Refinery

Particulars
Company Cipla Limited
Industry Pharmaceuticals
Founder Dr. Khwaja Abdul Hamied
Chairman & CEO Y K Hamied
Managing Director & Global Umang Vohra
CEO
Global CFO Kedar Upadhye
Business News The 82 year old chairman has been made
Honorary Fellow of the Prestigious body,
comprising of many of the world’s most
eminent scientist in the 2019 list of new
fellows of the UK’s Royal society
Business News 82 year old (Yusuf Hamied) has been made
an Honorary Fellow of the prestigious body
Forbes Best Employer 2021
460th on Forbes World’s Best Employer
Company Philosophy Slogan: - Caring for Life.

Objectives: - Cipla is a global
pharmaceutical firm that consistently ‘Cares
for Life’ and delivers on its commitment to
all their stakeholders- patients, regulators,
customers, partners, employees, investors
and community.
Vision: - To be the first global biotech
company to provide high quality products at
affordable prices that will enable access for
millions of patient’s world-wide by the year
2025.
Company’s Website www.cipla.com
Portfolio of Products & Services of Cipla Limited
Products & Medicines & Drugs

Services

• Cipla primarily develops medicines to treat respiratory, cardiovascular
disease, arthritis, diabetes, weight control ,depression and other medical
conditions.
• Cipla sells active pharmaceutical ingredients as well as pharmaceutical and
personal care products including Escitalopram (anti-depressant), Lamivudine
and Fluticasone propionate. They are the world's largest manufacturer
of antiretroviral drugs. It currently manufactures 200 generic and complex Active
Pharmaceutical Ingredients (API’s)
Particulars
Company Coal India Limited
Industry Mining
IPO Year 2010
Headquarter Kolkata, West Bengal, India
Chairman Mr. Pramod Agrawal (IAS)
Managing Director & CEO Mr. Pramod Agrawal (IAS)
Chief Financial Officer(CFO) Mr. Sanjiv Soni
Business News “CSR Winner Award for Rural Development
and Infrastructure” at 6th CSR Impact Awards
2018-19
Ranking on Forbes World 770th Largest Public Corporations List
list 2021
Key Businesses - Production, mining & sale of coal

Company Philosophy Mission: - To produce and market the planned
quantity of coal and coal products efficiently
and economically in an eco-friendly manner
with due regard to safety, conservation and
quality.
Vision: - To emerge as one of the global
players in the primary energy sector
committed to provide energy security to the
country by attaining environmentally &
socially sustainable growth through best
practices from mine to market.
Company’s Website www.coalindia.in

Portfolio of Products & Services of Coal India Limited
Company Subsidiaries of Coal India Ltd

• Bharat Coking Coal Limited (BCCL)
• Central Coalfields Limited (CCL)
• Eastern Coalfields Limited (ECL)
• Mahanadi Coalfields Limited (MCL)
• Northern Coalfields Limited (NCL)
• South Eastern Coalfields Limited (SECL)
• Western Coalfields Limited (WCL)
• Central Mine Planning and Design Institute (CMPDI)
Company Joint Ventures of Coal India Ltd

• International Coal Ventures Private Limited (ICVPL)
• CIL-NTPC Urja Pvt. Limited
Particulars
Company Dr. Reddy’s Laboratories Ltd
Industry Pharmaceuticals
Founder Kallam Anji Reddy
Headquarter Hyderabad, Telangana, India
Chairman K Satish Reddy
Managing Director & CEO Erez Israeli
CFO Parag Agarwal
Business News Initiated a voluntary nationwide recall on 1st
Oct’19 of all of its ranitidine medications sold
in US due to confirmed contaminationwith N-
Nitrosodimethylamine (NDMA) above levels
established by the USFDA’s
Key Businesses - Global Generics
- Biologics
- Active Pharmaceuticals Ingredients
- Custom Pharmaceutical Services
- Proprietary Products

Company Philosophy Slogan: - Good Health Can’t Wait.
Objectives: - The need for affordability,
better disease management and higher
efficacy are key priorities for the company
Vision: - The company is constantly looking
for opportunities that allow them to bring
expensive medicines within the reach of
patients who need them.
Company’s Website www.drreddys.com
Portfolio of Products & Services of Dr. Reddy’s Laboratories Ltd.
Generic Drugs
More than 200 high-quality generic drugs are provided by the company.
Product – Tablets, capsules, injectables, and topical creams
Brand – Omez (Omeprazole), Nise (Nimesulide), ketorol (Ketorolac Thromethamine),
Stamlo (Amlodipine Besylate) and Razo (Rabeprazole)
Over the
counter
They have four products in the market and an industry-leading pipeline spanning
oncology, nephrology and auto-immune diseases.
Product – Medicines on pain management, dermatology and allergy management areas,
and gynecology
Brand – Cetrine, Nise gel, lbuclin and novigan
Product Active Pharmaceuticals Ingredients

They are one of the world’s largest manufacturers of Active Pharmaceuticals Ingredients
(APIs)
Particulars
Company Flipkart
Industry E-Commerce
Headquarter Singapore (legal domicile)
Bengaluru, Karnataka, India (Operational
Headquaters)
Founders Sachin Bansal and Binny Bansal

Chief Executive Officer Kalyan Krishnamurthy
(CEO)
Chief Financial Sriram Venkatraman
Officer(CFO)
Business News Sachin Bansal was awarded Entrepreneur of
the year 2012-13 from The Economics Times
In 2016, named to Time magazine’s list of the
100 most influential people
Ranking on Forbes India 86th Position
rich list
Key Businesses The company initially focused on book sales,
before expanding into other product
categories such as consumer electronics,
fashion, home essentials, and groceries, and
lifestyle products
It owns PhonePe, a mobile payment service
based on the UPI
In August 2018, U.S. based retail chain
Walmart acquired an 81% controlling stake in
Flipkart for US$16 billion
Company Philosophy Mission: - Provide delightful customer
experience
- Vision: - To become Amazon of India
Company’s Website www.flipkart.com
Product Catalogue of products

• Electronics to appliances
• Fashion for men, women and kids,
• Ticket booking,
• Flight booking,
• Home appliance,
• Furniture,
• Books,
• Sports equipment etc
Product Flipkart and its subsidiaries

• Myntra, for fashion
• Jabong, for fashion
• Phone Pe, online payment method
• Ekart, Logistics and retail
• Jeeves
• 2GUD

Particulars
Company GAIL (India) Limited
Industry Energy- petroleum sector
Ownership Group Ministry of Petroleum & Natural Gas
(MoP&NG)
Chairman & Managing Manoj Jain
Director
Chief Executive Officer Manoj Jain
(CEO)
Chief Financial A K Tiwari
Officer(CFO)
Business News 1st National Awards for Excellence in Cost
Management 2018 from ICAI, in Public Sector
Manufacturing
Prestigious CII- National Water Awards for
Excellence in Water Management – 2016 in
“out of fence category”
list 2021 290th Best Employers’ List, 2019
Key Businesses - Natural Gas
- City Gas Distribution
- Power & Renewables
- Petrochemicals
- Liquid hydrocarbons
- Exploration & Production
Company Philosophy Mission: - To accelerate and optimise the
effective and economic use of Natural Gas
and its fractions to the benefit of national
economy
Vision: - Be the Leading Company in Natural
Gas and beyond with Global Focus,
Committed to Customer Care, Value Creation
for all Stakeholders and Environmental
Responsibility
Company’s Website www.gailonline.com

Portfolio of Products & Services of GAIL (India) Limited
Company Subsidiaries of GAIL (India) Limited

• GAIL Gas Limited
• Brahmaputra Cracker and Polymer Limited
• GAIL Global (Singapore) Pte. Limited
Company Joint Ventures of GAIL (India) Limited

• Aavantika Gas Limited
• Bhagyanagar Gas Limited
• Central U.P. Gas Limited
• GAIL China Gas Global Energy Holdings Limited
• Green Gas Limited
• Indraprastha Gas Limited
• Konkan LNG Pvt. Limited
• Mahanagar Gas Limited
• Maharashtra Natural Gas Limited
• ONGC Petro-additions Limited
• Petronet LNG Limited
• Ratnagiri Gas and Power Pvt. Limited
• Talcher Fertilizers Limited
• TAPI Pipeline Company Limited
• Tripura Natural Gas Company Limited
• Vadodara Gas Limited
Particulars
Company HDFC Bank Limited
Industry Banking, Financial Services
Ownership Group HDFC group
Chairperson Deepak S Parekh
Managing Director Sashidhar Jagdishan
Chief Executive Officer Aditya Puri
(CEO)
Chief Financial Srinivasan Vaidyanathan
Officer(CFO)

Business News Awarded ‘India’s best Bank’ by Euromoney
Awards for Excellence 2019 for 12th
consecutive year and “Best Performing
Branch” in microfinance among private
sector banks by NABARD
Won top honours at the Nasscom DSCI
Excellence Award
list 2021 77th Best Employer’s List, 2021
Key Businesses - Wholesale Banking
- Retail Banking
- Treasury
- Auto Loans
- Two wheeler loans
- Personal loans
- Loan against property
- Consumer durable loan
- Lifestyle loan
- Credit Cards
Company Philosophy Vision: - The passion to excel is in the bank’s
DNA and every innovation is intended to
deliver an excellent digital banking
experience to the customers. They ensure
that they are truly the pioneers of
experiential leadership in the banking sector,
bringing the bank closer to the customer
every day.
Company’s Website www.hdfcbank.com
Portfolio of Products & Services of HDFC Bank Limited
Company Group companies of HDFC Bank Limited

• HDFC Limited
• HDFC Securities
• HDFC Mutual Fund
• HDFC Realty
• HDFC Life
• HDFC Ergo
• HDFC Pension
• HDB Financial Services

Particulars
Company ICICI Bank Limited
Industry Banking, Financial Services
Ownership Group ICICI group
Chairman Girish Chandra Chaturvedi
Managing Director & CEO Sandeep Bakshi
Chief Financial Officer(CFO) Rakesh Jha
Business News Biggest winner at IBA Banking Technology
Awards 2018
Awarded by the Ministry of Skill Development
and Entrepreneurship
Issued 2 million FASTag
The building of the ICICI Rural Self
Employment Training Institute , provides free
of cost vocational training and has been
awarded ‘Net Zero Energy-Platinum’ by Indian
Green Building Council
Launched ‘InstaBIZ’ in July
Ranking on Forbes World 182nd Largest Public Corporations List
list 2021
Key Businesses - Retail banking
- Corporate banking
- Investment banking
- Mortgage loans
- Private banking
- Wealth management
- Credit cards,
- Finance and Insurance
Company Philosophy Mission: Leverage our people, technology,
speed and financial capital to
- Banker of first choice
- Expand the frontiers
- Proactive in full realization of India’s
potential
- Healthy financial profile
- High standard of governance
- Contribute positively
- Create value for stake holders

Vision: - To be the leading provider of
financial services in India and a major global
bank
Company’s Website www.icicibank.com
Portfolio of Products & Services of ICICI Bank Limited
Company Domestic Subsidiaries of ICICI Bank Limited

• ICICI Prudential Life Insurance Company Limited
• ICICI Lombard General Insurance Company Limited
• ICICI Prudential Asset Management Company Limited
• ICICI Prudential Trust Limited
• ICICI Securities Limited
• ICICI Securities Primary Dealership Limited
• ICICI Venture Funds Management Company Limited
• ICICI Home Finance Company Limited
• ICICI Investment Management Company Limited
• ICICI Trusteeship Services Limited
• ICICI Prudential Pension Funds Management Company Limited.
Company International Subsidiaries of ICICI Bank Limited

• ICICI Bank USA
• ICICI Bank UK PLC
• ICICI Bank Canada
• ICICI Bank Germany
• ICICI Bank Eurasia Limited Liability Company
• ICICI Securities Holdings Inc.
• ICICI Securities Inc.
• ICICI International Limited.
Segment Products
Funds and Mutual funds, Deposits, Portfolio management services, etc.
Investments
Banking Saving accounts, Home loans, Family wealth account, Car loans,
Products Foreign exchange services and Demat account.

Insurance and Life insurance and General insurance
risk protection
Credit cards ICICI Bank Diamant Credit Card, ICICI Bank Sapphiro Credit Card and Jet
Airways ICICI Bank Sapphiro Credit Card
Banking Mutual Fund Transaction Platform, Lockers, iWealth, iMobile, Smart
Services Vault, e-Locker, i-Track, Video Banking App and Preferred Time
Delivery.
Business Current Account, Trade Services, Business Loans, Business Insurance
Banking and Cash Management Services.
Particulars
Company Indian Oil Corporation Ltd (IOCL)
Industry Oil & Gas
Chairman & Managing Shrikant Madhav Vaidya
Director
Director – Finance Sandeep Kumar Gupta

Business News Awarded “Sustainably Growing Corporate of
the Year”
Won the National CSR Award instituted by the
MCA, under Women and Child Development
category
Spent Rs. 490.60 crores on CSR initiatives
during 2018-19
2020
Key Businesses - Refineries
- Pipelines
- Petroleum products marketing
- Natural Gas
- Petrochemicals

Company Philosophy Vision: - A major diversified, trans-national,
integrated energy company, with national
leadership and a strong environment
conscience, playing a national role in oil
security and public distribution
Mission: - Achieve international standards of
achievement
- To maximise creation of wealth, value
satisfaction
- To attain leadership
- To provide technology and services
through sustained R&D
Company’s Website www.iocl.com
Portfolio of Products & Services of Indian Oil Corporation Ltd.
Businesses Petroleum products, pipelines network , crude oil etc.

Indian Oil accounts for nearly half of India's petroleum products market share. Indian Oil's
has cross-country pipeline network for transportation of crude oil to refineries.
There are 7 major business divisions in the organization:-
• Refineries Division
• Pipelines Division
• Marketing Division
• R&D Division
• Petrochemicals Division
• Exploration & Production (E&P) Division
• Explosives and Cryogenics Division
Businesses Refineries
• Barauni Refinery
• Bongaigaon Refinery
• CPCL, Chennai
• CPCL, Narimanam
• Digboi Refinery
• Guwahati Refinery
• Haldia Refinery
• Koyali Refinery
• Mathura Refinery
• Panipat Refinery
• Paradip Refinery
Businesses Indian Subsidiaries of Indian Oil Corporation Limited

• Chennai Petroleum Corporation Ltd
• Indian Oil- CREDA Biofuels Limited
• Indian Catalyst Private Ltd

Businesses Foreign Subsidiaries of Indian Oil Corporation Limited
• Indian Oil (Mauritius) Ltd.
• Lanka IOC PLC
• IOC Middle East FZE
• IOC Sweden AB
• IOCL (USA) Inc.
• IndOil Global B.V Netherlands
Particulars
Company Infosys Limited
Industry IT services, IT consulting
Founder N. R. Narayana Murthy ,Nandan Nilekani, S.
Gopalakrishnan , S. D. Shibulal , K. Dinesh, N.
S. Raghavan , Ashok Arora
Headquarter Bengaluru, Karnataka, India
Chairman Nandan Nilekani
Managing Director & CEO Salil Parekh
Interim CFO Nilanjan Roy
Business News Awarded “Excellent Partner Award” by Mazda
Awarded “Climate Neutral Now” at the UN
Climate Change Conference in Madrid
Certified in 2020 as ‘Top employer’
Ranking on Forbes World list 492nd Largest Public Corporations List
2021
Key Businesses - IT services & consultancy.
Company Philosophy Vision: - To be a globally respected corporation
that provides best-of-breed business solutions,
leveraging technology, delivered by best-in-
class people.
Company’s Website www.infosys.com
Portfolio of Products & Services of Infosys Limited
Services IT related services

It provides software development, maintenance and independent validation services to
companies in finance, insurance, manufacturing and other domains.

Services Key products & services
Its key products and services are:
• Finacle which is a universal banking solution with various modules for retail &
corporate banking
• NIA – Next Generation Integrated AI Platform (formerly known as Mana)
• Infosys Consulting – a global management consulting service
• Infosys Information Platform (IIP) – Analytics platform
• EdgeVerve Systems which includes Finacle, a global banking platform
• Panaya Cloud Suite
• Skava
Particulars
Company ITC Limited
Headquarter Kolkata ,West Bengal, India
Chairman Sanjiv Puri
Managing Director & CEO Sanjiv Puri
Chief Financial Officer Supratim Dutta
(CFO)
Business News Ears the Highest Global Recognition for
Water Stewardship
The only company to be water positive ,
covering 10.87 Lakh acres benefiting over
3.20 Lakh people in 15 states
Launched world’s most expensive chocolate
priced at Rs. 4.3 lakh/ Kg under its brand
Fabelle
Ranking on Forbes World 833rd Largest Public Corporations List
list 2021 453rd Best Employer’s List, 2021
Key Businesses - Fast Moving Consumer Goods

- Hotels
- Paperboards & Specialty Papers
- Packaging
- Agri business
- Information Technology

Company Philosophy Mission:-To enhance the wealth generating
capability of the enterprise in a globalising
environment, delivering superior and
sustainable stakeholder value
Vision: - Sustain ITC's position as one of
India's most valuable corporations through
world class performance, creating growing
value for the Indian economy and the
Company's stakeholders
Company’s Website www.itcportal.com
Portfolio of Products & Services of ITC Limited
Business Fast Moving Consumer Goods (FMCG)

• Foods- major food brands include Aashirvaad, B natural, Sunfeast, Candyman,
Bingo and Yippee. It is present across 6 categories in the food business including
snack foods, ready-to-eat meals, fruit juices, dairy products and confectionery.
• Personal care products include perfumes, hair care and skincare categories. Major
brands are Fiama Di Wills, Vivel, Essenza Di Wills, Superia and Engage.
• Education and Stationery Products –major brands include Classmate, PaperKraft

and Colour Crew.
• Safety Matches and Agarbattis- major brands include Ship, i Kno and Aim brands of
safety matches and the Mangaldeep brand of agarbattis (Incense Sticks).
• Cigarettes, Cigars- major brands include Gold Flake, Navy Cut etc.
Business Hotels
Luxury hotels & welcome hotels: - ITC's Hotels division (under brands including
WelcomHotel) is India's second-largest hotel chain with over 90 hotels throughout India.
ITC is also the exclusive franchisee in India of two brands owned by Sheraton International
Inc.
Brands in the hospitality sector owned and operated by its subsidiaries include Fortune
Park Hotels and WelcomHeritage Hotels.
Business Paperboard
Products such as specialty paper, graphic and other paper are sold under the ITC brand by
the ITC Paperboards and Specialty Papers Division. Major brand include ‘Classmate’
Business Packaging and Printing

ITC's Packaging and Printing division operates manufacturing facilities
at Haridwar and Chennai.

Business Information Technology
ITC operates through its fully owned subsidiary ITC Infotech India Limited.
Particulars
Company Larsen & Toubro Limited (L&T)
Ownership Group L&T group
Headquarter Mumbai ,Maharashtra, India
Founder Henning Holck-Larsen, Søren Kristian Toubro
Group Chairman Anil Manibhai Naik
Managing Director & CEO S N Subrahmanyan
Chief Financial Officer Mr. Shankar Raman
(CFO)
Business News Inaugurated Phase 1 Metro express in Oct’19 in
African island nation of Mauritius by PM Shri
Narendra Modi and Pravind Kumar Jugnauth ,
PM of Mauritius
Secured the prestigious project of
Engineering, Procurement and Constructions
of Green field Navi Mumbai International
Airport in Sept’2019
Key Businesses - Construction
- Hydrocarbon Engineering
- Power
- Metallurgical & material handling
- Heavy Engineering
- Defence
- Shipbuilding
- Electrical & Automation
- Construction & Mining Machinery
- L&T Valves
- L&T technology services
- L&T metro rail
- L&T Finance
- L&T realty

Company Philosophy Vision: - L&T shall be professionally-managed
Indian multinational, committed to total
customer satisfaction and enhancing
shareholder value.
Company’s Website www.larsentoubro.com
Portfolio of Products & Services of Larsen & Toubro Limited (L&T)
Business Construction
L&T Construction is among the world’s Top 30 contractors. The business encompasses
multiple business - Buildings & Factories, Transport Infrastructure, Heavy Civil
Infrastructure, Smart World & Communication, Water & Renewable Energy and Power
Transmission & Distribution, Smart World and communication, etc,.
Business Hydrocarbon Engineering

L&T Hydrocarbon Engineering, a wholly owned subsidiary of L&T, is dedicated to serving
the oil and gas sector around the world. It delivers turnkey engineering and construction
solutions to offshore and onshore hydrocarbon projects.
Business Power
L&T provides integrated concept - to - commissioning solutions for supercritical thermal
power plants. They also offer comprehensive services for Coal, thermal and gas-based
power plants.
Business Metallurgical & Material Handling

The business undertakes EPC projects for ferrous and non-ferrous metal industries, as well
as bulk material and ash handling systems in the power, port, steel and mining sectors.
Business Heavy Engineering

L&T Heavy Engineering manufactures and supplies custom designed equipment & critical
piping to process industries such as fertilizer, chemical, refinery, petrochemical, and oil &
gas, as well as to sectors such as thermal & nuclear power and aerospace.
Business Defence
L&T provides indigenous, design-to-delivery solutions across the defence spectrum – from
surveillance to strike capabilities, and mobility platforms essential to enhance their
effectiveness. They also offer specialised turnkey defence construction solutions like
underground structures, military bases, storage depots, smart infrastructure and
modernisation of existing facilities.

Business Shipbuilding
L&T’s shipbuilding arm offers total solutions – from concept to design for new builds as
well as repair and retrofit – for warships.
Business Electrical & Automation

L&T Electrical & Automation offers a wide range of products and solutions for electricity
distribution and control, across various sectors: Replays, Meters, Automation Products and
system, Low and medium voltage products, industries, utilities, buildings, residences,
marine vessels and agriculture
Portfolio of Products & Services of Larsen & Toubro Limited (L&T)
Business Construction & Mining Machinery

L&T’s construction equipment business manufactures, distributes and provides after-sales
support for construction and mining equipment.
Business L&T Valves

L&T Valves is a leader in flow-control solutions for critical services. The business has a
marketing network that spans the globe and is reinforced through strategic alliances with
international distributors.
Company LTI
A subsidiary of L&T, LTI is a global IT services and solutions provider with presence in 23
countries. With twenty-two delivery centres and a diversified work force worldwide, the
business is expanding into new geographies even as it consolidates its client facing
organization in North America and Europe.
Company L&T Technology Services

L&T Technology Services offers design and development solutions through the entire
development chain in multiple industries. The Company has design and delivery locations
in six centres in India, as well as two delivery centres in the US.
Company L&T IDPL

L&T Infrastructure Development Projects Ltd (L&T IDPL) is India’s premier infrastructure
developer. A leading player in ‘Public-Private-Partnership’ projects, it has business
interests in Roads & Bridges, Ports, Metro Rail and Power Transmission.
Business L&T Metro Rail

The Hyderabad Metro Rail is one of the world’s largest projects of its kind involving
public-private partnership in the mass transport sector. It will cover 72 km across three
corridors, transforming Hyderabad, triggering robust economic activity around the city.
Business L&T Finance

L&T Finance Holdings offers a diverse set of financial products and services, covering
mutual funds, infra finance, home loans and more.

Business L&T Realty
The real estate arm of L&T extends the Company’s values of trust, professionalism and
commitment to the domain of commercial and residential properties. All properties of
L&T Realty embody a sustainable design philosophy and focus on fostering integrated
communities.
Business L&T Subsidiary & Associate companies

L&T has over 130 subsidiaries and 15 associate companies
Particulars
Company NTPC Ltd.
Industry Electric Utility
Chairman & Managing Director Gurdeep Singh
Chief Executive Officer (CEO) Gurdeep Singh
CFO Anil Kumar Gautam
Business News A term loan agreement for Rs. 5,000 crores signed
with SBI on 6th Dec’19
Awarded “Gold Peacock Award for Sustainability’
2019”
For FY – 18-19 paid dividend of Rs. 2,473 crore, 25% of
paid-up equity share capital
Ranking on Forbes World list 513rd Largest Public Corporations List
Key Businesses - Electricity generation and distribution
- natural gas exploration,
- production, transportation and distribution
Company Philosophy Vision: - To be the world’s leading power company,
energizing India’s growth.
Mission: To provide reliable power and related
solutions in an economical, efficient and environment
friendly manner, driven by innovation and agility.
Company’s Website www.ntpc.co.in

Portfolio of Products & Services of NTPC Ltd.
Company Subsidiaries of NTPC Limited

• NTPC Electric Supply Company Ltd.
• NTPC Vidyut Vyapar Nigam Ltd.
• Kanti Bijlee Utpadan Nigam Ltd.
• Bharatiya Rail Bijlee Company Ltd.
• Patratu Vidyut Utpadan Nigam Ltd.
• Nabinagar Power Generating Company Pvt. Ltd.
Particulars
Company Oil & Natural Gas Corporation Limited
Industry Oil & Gas
Headquarter Dehradun, Uttarakhand, India
Chairman & Managing Shashi Shanker
Director
Chief Executive Officer Shashi Shanker
(CEO)
CFO Subhash Kumar
Business News ‘Maharatana of the year (Non-manufacturing)’
in Dalal Street’s Roll of Honour
“India Pride Award”
“Golden Peacock Award for Risk Management”
Global Energy Award 2019 for CSR – Diversified
program
2021
Key Businesses - Oil exploration
- Development & production of crude oil
- Production of natural gas
- Refining

Company Philosophy Vision: - To be global leader in integrated
energy business through sustainable growth,
knowledge excellence and exemplary
governance practices.
Mission: - World class
- Integrated in energy business
- Dominant Indian Leadership
- Portfolio of company; Product and
service it offers
Company’s Website www.ongcindia.com
Portfolio of Products & Services of ONGC Ltd.
Business Key areas and products

ONGC's operations include conventional exploration and production, refining and
progressive development of alternate energy sources like coal-bed methane and shale gas.
ONGC supplies crude oil, natural gas, and value-added products to major Indian oil and
gas refining and marketing companies. Its primary products crude oil and natural gas are
for the Indian market.
Company Subsidiaries of ONGC Limited

• ONGC Videsh Limited (OVL)
• Hindustan Petroleum Corporation Limited (HPCL)
• Mangalore Refinery and Petrochemicals Ltd (MRPL)
Company Joint Ventures of ONGC Limited

• ONGC Tripura Power Company Limited (OTPC)
• ONGC Petro-additions Limited (OPaL)
• Mangalore Special Economic Zone Limited (MSEZ)
• ONGC Mangalore Petrochemicals Limited (OMPL)
• Dahej SEZ Limited (DSL)

Particulars
Company Power Grid Corporation of India Limited
(POWERGRID)
Industry Electric Utility
Headquarter Gurugram , Haryana, India
Chairman & Managing Director Sreekant Kandikuppa
Director- Finance Mohammed Taj Mukarrum
Business News “National Award for Excellence in CSR &
Sustainability”
Retained position of “Fastest Growing Electric Utility
in Asia Pacific
“Best performing Power Transmission Utility”
“CBIP Special Jury Award for Innovative Excellence in
Power Transmission”
2021 341st Best Employer’s List, 2019
Key Businesses - Power System Management
- Telecom
- Transmission and distribution
Company Philosophy Vision: - World Class, Integrated, Global Transmission
Company With Dominant Leadership in Emerging
Power Markets Ensuring Reliability, Safety and
Economy.
Mission: To become a Global Transmission Company
with Dominant Leadership in Emerging Power Markets
with World Class Capabilities.
Company’s Website www.powergridindia.com
Portfolio of Products & Services of Power Grid Corporation of India Limited

(POWERGRID)

Business Key Areas
• Transmission & Distribution: - It is India’s largest Electric Power Transmission
Utility. It undertakes transmission of electricity through Inter-State Transmission
System (ISTS).
• Consultancy: - It provides in-house expertise in the Transmission, Distribution and

Telecom sectors, including Planning, Design, Engineering, Load Dispatch, OPGW on
intra-state Transmission network, Procurement Management, Operation &
Maintenance, Financing and Project Management.
• Telecom: - POWERGRID's telecom company, POWERTEL, operates a network of

47,735 Kilometers and points of presence in 688 locations across India.
Company Subsidiaries of Power Grid Corporation of India Limited (POWERGRID)

• Powergrid Vizag Transmission Limited
• Powergrid NM Transmission Limited
• Powergrid Unchahar Transmission Limited
• Powergrid Kala Amb Transmission Limited
• Powergrid Jabalpur Transmission Limited
• Powergrid Warora Transmission Limited
• Powergrid Parli Transmission Limited
• Powergrid Southern Interconnector Transmission System Limited
• Powergrid Vemagiri Transmission Limited
• Powergrid Medinipur Jeerat Transmission Limited
• Powergrid Mithilanchal Transmission Limited
• WR-NR Power Transmission Limited
Company Joint Ventures of Power Grid Corporation of India Limited

(POWERGRID)
Incorporated in India
• Powerlinks Transmission Limited
• Torrent Power Grid Limited
• Jaypee Powergrid Limited
• Parbati Koldam Transmission Company Limited
• Teestavalley Power Transmission Limited
• North East Transmission Company Limited
• National High Power Test Laboratory Private Limited
• Bihar Grid Company Limited
• Kalinga Bidyut Prasaran Nigam Private Limited(@)
• Cross Border Power Transmission Company Limited
• RINL Powergrid TLT Private Limited
Incorporated outside India

• Power Transmission Company Nepal Limited

Particulars
Company Reliance Industries Limited
IPO 1977
Ownership Group Reliance Group
Founder Dhirubhai Ambani
Present Head (CMD & CEO) Mukesh Ambani
Chief Financial Officer(CFO) Srikanth Venkatachari and Alok Agarwal
Business News Saudi Aramco and reliance industries signed non
binding letter of intent in Aug’19 to acquire a 20%
Stake in Oil to Chemicals for US$ 75 billion
Reliance and Microsoft announced a partnership to
accelerate the digital transformation in India
2021
Key Businesses - textile and polyester -
- energy
- materials
- retail
- entertainment
- digital services
- telecommunication
Company Philosophy At Reliance, the focus on growth is continuous and
never ending. Company’s motto “Growth is Life”
aptly captures the ever-evolving spirit of Reliance.
Vision :-Through sustainable measures, Reliance
creates value for the nation, enhances quality of life
across the entire socio-economic spectrum and helps
spearhead India as a global leader in all the domains
where it operates. Their ultimate aim is touch the
lives of people in a positive way.
Mission : - Growth is energy, growth is value, growth
is happiness and growth is life
Competitive Scenario Its different companies compete with different
businesses for their different products & services.
For example: - Reliance Jio Infocomm Limited (RJIL)
competes with Bharti Airtel, Vodafone, and BSNL.
Company’s Website www.ril.com

Portfolio of Products & Services of Reliance Industries Limited
Company Reliance Retail

Nature Retail Business
Key Brands: Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital,
Reliance Wellness, Reliance Trends, Reliance Autozone, Reliance Super, Reliance Mart,
Reliance iStore, Reliance Home Kitchens, Reliance Market (Cash n Carry) and Reliance
Jewel.
Company Reliance Life Sciences

Nature Medical & Industrial Biotechnology Business
Key Areas: It specializes in manufacturing, branding and marketing Reliance Industries
products in bio-pharmaceuticals, pharmaceuticals, clinical research services, regenerative
medicine, molecular medicine, novel therapeutics, biofuels, plant biotechnology, and
industrial biotechnology sectors of the medical business industry.
Company Reliance Institute of Life Sciences (RILS)

Nature Education Business
Key Areas: The institution offers higher education in various fields of life sciences and
related technologies.
Company Exploration and production

Nature Exploration and production
Key Areas: Complete chain of activity starting from exploration, appraisal. Development
and production
Company Petroleum refining and marketing

Nature Products
Key Areas: LPG, Naphtha, Gasoline, Aviation Turbine Fuel, Kerosene Oil, High-speed
diesel, Sulphur, Petroleum Coke etc.,
Company Reliance Petro chemicals

Nature Petrochemicals
Products – Polymers, Polyesters, Fiber intermediates, Aromatics and Elastomers
Brands : - Recron, Replet, Repol, Relab, etc.,
Portfolio of Products & Services of Reliance Industries Limited
Company Relicord
Nature Blood Banking Business
Key Areas: It provides cord blood banking service which is owned by Reliance Life
Sciences.

Company Reliance Jio Infocomm Limited (RJIL)
Nature Broadband service provider
Key Areas: It gives 4G licences for operating across India.
Company Reliance Industrial Infrastructure Limited (RIIL)

Nature Setting up and operating Industrial Infrastructure business.
Key Areas: It is engaged in related activities involving leasing and providing services
connected with computer software and data processing.
Company LYF
Nature Device making business
Key Areas: it is a 4G-enabled VoLTE device brand from Reliance Retail.
Company Network 18
Nature Media Business
Key Areas: It has interests in television, digital platforms, publication, mobile apps, and
films. It also operates two joint ventures, namely Viacom 18 and History TV18. It also
owns the Colors TV brand.
Company Reliance Eros Productions LLP

Nature Retail Business
Key Areas: Joint venture with Eros International.
Company Reliance Textiles

Nature Textile Business
Key Areas: It supplies premium fabrics having brand name as ‘Vimal’

Particulars
Company State Bank of India
Ownership Government of India
Chairman Dinesh Kumar Khara
Managing Director C.C. Setty, Ashwani Bhatia, Swaminathan J.,
Ashwini Kumar Tewari
Chief Financial Charanjit Surinder Singh Attra

Officer(CFO)
Business News 50th most trusted brand in India
During 2018-19, SBI extended financial
assistance of about Rs. 51,000 Cr to 47
infrastructure projects
list 2021 119th Best Employer’s List, 2021
Key Businesses - Corporate Banking -
- Retail Banking
- Investment Banking
- Mortgage
- Loans
- Private Banking
- Wealth Management
- Credit Cards
- Finance & Insurance
Company Philosophy Vision:- Be The Bank of Choice for a

transforming India
Values: - Service, Transparency , Ethics,
Politeness & Sustainability
Company’s Website www.sbi.co.in

Portfolio of Products & Services of State Bank of India
Services Key areas

• Retail banking
• Corporate Banking
• Personal banking
• Investment Banking
• NRI services
• Agriculture
• Mortgage
• Loans
• Private Banking
• Wealth Management
• Credit Cards
• Finance & Insurance
• Government Business
• Interest Rate services
Non -banking subsidiaries/Joint Ventures of State Bank of India are :-

• SBI Capital Markets Limited
▪ SBI CAP Securities Limited
▪ SBI CAP Ventures Limited
▪ SBI CAP (UK Limited)
▪ SBI CAP Trustees Co. Limited
▪ SBI CAP (Singapore Limited)
• SBI DFHI Limited
• SBI Mutual Fund Trustee Company Private Limited
• SBI Global Factors Limited
• SBI Pension Funds Private Limited
• SBI Funds Management Private Limited
• SBI Cards & Payment Services Private Limited
• SBI Life Insurance Company Limited
• SBI-SG Global Securities Services Private Limited
• SBI Business Process Management Services Private Limited
• SBI General Insurance Company Limited
• C-Edge Technologies Limited
• Macquarie SBI Infrastructure Management. Pte. Ltd.
• SBI Macquarie Infrastructure Management Private Limited
• SBI Macquarie Infrastructure Trustee Private Limited
• Oman India Joint Investment Fund-Management. Co. Private Limited
• Oman India Joint Investment Fund-Trustee Co. Private Limited
• SBI Foundation
• SBI Infra Management Solutions Pvt. Ltd.
• JIO Payments Bank Ltd

Portfolio of Products & Services of State Bank of India
Foreign Banking Subsidiaries/Joint Ventures/ Investments of State Bank of India are :-

• State Bank of India (California)
• SBI Canada Bank
• CIBL Moscow
• SBI Mauritius Limited
• Bank SBI Indonesia
• Nepal SBI Bank Limited
• Bank SBI Botswana Limited
• Bank of Bhutan Limited
• Sterling Bank PLC
• Kukuja Project Development Company
Foreign Non-Banking Subsidiary of State Bank of India are :-

• SBI Servicos Limitada, Brazil
Particulars
Company Tata Sons Private Limited
Ownership Group Tata group
Headquarter Mumbai ,Maharashtra, India
Founder Jamsetji Tata
Chairman Natrajan Chandrasekaran
Chief Financial Officer Eruch Noshir Kapadia
(CFO)
Business News ‘Tata’ entered top 100 most valuable brands
in 2019
Market capitalization of all 28 listed Tata
group companies rose to 10.88 trillion as of
Feb’19

Ranking on Forbes World list Tata Motors – 784th Largest Public Corporations
2021 List, 20201
TCS – 322th Largest Public Corporations List,
2021
Tata Steel – 939th Largest Public Corporations
List, 2021
Tata Motors – 304th Best Employer’s List, 2019
Tata Steel – 391st Best Employer’s List,2019
Business & Shareholding Tata Sons is the principal investment holding
company and promoter of Tata companies.
Sixty-six percent of the equity share capital
of Tata Sons is held by philanthropic trusts,
which support education, health, livelihood
generation and art and culture. There are 29
publicly-listed Tata enterprises.
Company Philosophy Tata has been value driven. These values
continue to direct the growth & business of
Tata Companies. The five core Tata values
underpinning the way they do business are
pioneering, integrity, excellence, unity and
responsibility.
Company’s Website www.tata.com
Portfolio of Products & Services of Tata Sons Private Limited
Business Information Technology

The group's IT companies led by TCS operate globally, serving a diverse set of customers
and innovating a suite of market-leading products.
Major companies are :-
• Tata Consultancy Services
• Tata Elxsi
Business Steel
‘Tata Steel’ came into being in 1907 and holds the distinction of being Asia’s first
integrated steel company.
Business Automotive
Tata Motors, the group's flagship automotive company, manufactures and markets
automobiles for every need and segment.
Major companies are:-
• Tata Motors
• Jaguar Land Rover
• Tata Autocomp Systems

Business Consumer & Retail
The group's foray into the Consumer and Retail segment began with the setting up of Tata
Oil Mills Company, known as TOMCO, in 1917.
• Tata Chemicals
• Tata Global Beverages
• Voltas
• Titan
• Infiniti Retail
• Trent
Business Infrastructure
Major companies are :-
• Tata Power
• Tata Projects
• Tata Housing
• Tata Consulting Engineers
• Tata Realty & Infrastructure
Portfolio of Products & Services of Tata Sons Private Limited
Business Financial Services

The group's foray into Financial Services commenced in 1919 under the chairmanship of Sir
Dorab Tata, with the set-up of New India Assurance.
• Tata Capital
• Tata AIA Life
• Tata Asset Management
• TATA AIG
Business Aerospace & Defence

The Tata group has supported the creation of a 'Made in India' backbone for the Indian
armed forces for decades, and is emerging as the largest player in India's private sector
defence industry.
Major Company is:-
• Tata Advanced Systems
Business Tourism & Travel

Major Companies are:-
• Indian Hotels Company
• TATA SIA Airlines
• Air Asia India
Business Telecom & Media

The Tata group's telecom enterprises cater to the communication requirements of global
business houses to SMEs, and from wholesale to home networks.

• Tata Communications
• Tata Sky
• Tata Teleservices
Business Trading & Investments

The Tata group commenced business as a private trading firm in 1868. Tata International,
Tata Industries and Tata Investment Corporation form the three enterprises in this sector.
Particulars
Company Wipro Limited
Industry IT services, IT consulting
Founder Mohammed Hashim Premji
Headquarter Bengaluru, Karnataka, India
Chairman Rishad Premji
Executive Director & CEO Thierry Delaporte
CFO Jatin Pravinchandra Dalal
Business News Leader in Artificial Intelligence Consultancies
by global research and advisory firm Forrester
Research Inc. for 2019
HFS Top Finance and Accounting Service
Providers, Energy Service Providers and Google
AI Services, 2019
2021 193rd Best Employer’s List, 2019
Key Businesses - IT services & consultancy
- Digital strategy

Company Philosophy Vision: - “To earn our clients’ trust and
maximize the value of their businesses by
providing solutions that integrate our deep
industry insights, our leading technology and
best-in-class execution”. To be among the top
10 Global IT & Business Processing Outsourcing
Services
Mission: - To help create new kind of
professional services that work with both
business and IT executives to innovate and
deliver, end to end solutions
Company’s Website www.wipro.com
Portfolio of Products & Services of Wipro Limited
Services Key Areas

Wipro Limited is a leading global information technology, consulting and business process
services company. They provide services like cognitive computing, hyper-automation,
robotics, cloud, analytics, infrastructure service etc.
Company Subsidiaries
• Western India Products Limited
• Wipro Consumer Care & Lighting
• Wipro Infrastructure Engineering
• Wipro GE Medical Systems

(B) An Overview of selected Global Companies
Particulars
Company Amazon.com,Inc
Industry E-commerce
Headquarter Seattle ,Washington, U.S.
Chief Executive Officer(CEO) Jeff Bezos
Chief Financial Officer(CFO) Brian T. Olsavsky
Business News Ranked 2nd on Fortune 500 Companies List
#1 BrandZ most valuable Global Brand 2019-20
#2 Fortune World’s Most Awaited Companies,
2017-2020
2021 4th on world’s Best employer, 2021
Company Philosophy Vision: - We aim to be Earth’s most customer

centric company
Mission: - To continually raise the bar of the
customer experience by using the internet and
technology to help consumers find, discover and
buy anything, and empower businesses and
content creators to maximise their success
Company’s Website www.Amazon.com

Portfolio of Products & Services of Amazon
Services Key Areas

Amazon.com's product lines available at its website include several media (books, DVDs,
music CDs, videotapes and software), apparel, baby products, consumer electronics,
beauty products, gourmet food, groceries, health and personal-care items, industrial &
scientific supplies, kitchen items, jewelry, watches, lawn and garden items, musical
instruments, sporting goods, tools, automotive items and toys & games.
Services Key Areas

- Amazon Fresh
- Amazon Prime
- Amazon Web Services
- 4 Alexa
- Appstore
- Amazon Drive
- Echo
- Kindle
- Fire tablets
- Fire TV
- Video
- Kindle Store
- Music
- Music Unlimited
- Amazon Digital Game Store
- Amazon Studios

Particulars
Company American Express Company (Amex)
Headquarter New York, United States
Chairman Stephen Squeri
Chief Executive Officer(CEO) Stephen Squeri
Chief Financial Officer(CFO) Jeffrey C. Campbell
Business News Added 6 Lakh new merchants since 2017 in India
Ranked 312th on Fortune 500 companies in 2021
Key Businesses - Charge Cards
- Credit Cards
- Traveler’s Cheque
- Corporate Banking
- Finance
- Insurance
- Travel
Company Philosophy Vision: - To ensure our customers receive massive
rewards in life. Not only do we move towards our
goal of being a flying partner of you but also a life-
ensuring partner. Up to sky and down to earth,
American Express turns your dreams to reality. Be
a leading provider of payment solutions worldwide
Mission: - Leverage our local and global expertise
to be a leading provider of payment solutions for
our customers by delivering high quality,
innovative and world-class products and services;
while maintaining the highest standards of
governance and ethics.
Company’s Website www.americanexpress.com

Portfolio of Products & Services of American Express Company (Amex)
Product Key Areas

• Financial Services
• Investment Banking
• Card Products:- Consumer Cards, Card acceptance outside the United States, Card
design, ExpressPay, Small Business services ( also known as American Express
OPEN), Commercial Cards, Non-proprietary cards and Merchant account.
• Non Card Products: - Traveler's checks, Shearson/American Express, Financial

advisors, International bank, Travel, Publishing and Individual banking.
Particulars
Company Nestle
Industry Food processing
Headquarter Vevey, Vaud, Switzerland
Founder Henri Nestle
Chairman Paul Bulcke
Chief Executive Officer(CEO) Ulf Mark Schneider
Chief Financial Officer(CFO) Francois Xavier Roger
Business News Decided to distribute upto CHF 20 billion over the
period 2020 to 2022, in form of Share buy back
2021
501st Best Employer’s List, 2021

Key Businesses - Baby food
- Coffee,
- Dairy products
- Breakfast cereals
- Confectionery
- Bottled water
- Ice cream
- Pet foods
Company Philosophy Vision: - To be a leading, competitive, Nutrition,
Health and Wellness Company delivering improved
shareholder value by being a preferred corporate
citizen, preferred employer, preferred supplier
selling preferred products.
Mission: - Our mission of "Good Food, Good Life" is
to provide consumers with the best tasting, most
nutritious choices in a wide range of food and
beverage categories and eating occasions, from
morning to night.
Company’s Website www.nestle.com
Portfolio of Products & Services of Nestle
Product Key Business areas.

Nestlé has over 2000 brands with a wide range of products across a number of markets,
including coffee, bottled water, milkshakes and other beverages, breakfast cereals, infant
foods, performance and healthcare nutrition, seasonings, soups and sauces, frozen and
refrigerated foods, and pet food.
Major Segments Name of Key brands

Beverages Nescafe
Breakfast Cereals NesPlus
Chocolates & Confectionery Kitkat, Munch
Milk products & Nutrition Nestle Baby, Ceregrow, Nangrow
Prepared Dishes & Cooking aids Maggi
Vending & Food services Nescafe Alergia, Nescafe Solution, Spectra
Double option, Frio, EZ Care.
Company Joint ventures by NESTLE

• Cereal Partners Worldwide with General Mills
• Beverage Partners Worldwide with Coca-Cola Company
• Lactalis Nestle Produits Frais with Lactalis
• Nestle Colgate-Palmolive with Colgate-Palmolive

Brand Operations Products
Nestle Waters World's leading producer of It has 52 water brands which
bottled water, employing more include Acqua Panna, Aquarel,
than 34,000 staff at 100 Buxton, Perrier, Pure Life, San
production sites in 35 countries Pellegrino, Sao Lourenco, and
globally. Vittel.
Cereal Partners It is a joint venture which Breakfast cereals and baby
Worldwide combines the expertise of two foods. Cerelac, Gerber, Gerber
companies: Nestlé and General Graduates, NaturNes, Nestum,,
Mills. Chocapic, Cini, Minis Cookie
Crisp, Estrelitas, Fitness, Nesquik
Cereal, etc.
Nestle Health It has been engaged in advancing Related to the health areas, such
Science the role for nutritional therapy in as paediatric and acute care,
the management of people's metabolic and obesity care,
health. healthy ageing, and
gastrointestinal and brain health.
Example: Boost, Meritene, Nutrin
Junio, Alfameno, etc.
Nestle Nespresso It was started in 1986 to enable Nescafé, Nescafé 3 in 1, Nescafé
anyone to create the perfect cup Cappuccino, Nescafé Classic,
of espresso coffee. Nescafé Decaff, Nescafé Dolce
Gusto, Nescafé Gold, Nespresso
Nestle Purina It aims to develop products that Purina Pro Plan, Purina ONE,
deliver comprehensive nutrition Fancy Feast, Friskies, Dog Chow,
to help ensure the long healthy Beneful, Alpo, Bakers Complete,
lives of pets. Cat Chow, Chef Michael's Canine
Creations, Felix, Gourmet, etc.
Nestle Skin Health It works to enhance the quality Cataphil Lotion, Daylong,
of life by delivering science- Emervel, Mirvaso, etc.
based solutions for the health of
skin, hair and nails over the
course of people's lives

Particulars
Company Microsoft Corporation (MS)
Industry Technology
Headquarter Redmond, Washington, U.S.
Founder Bill Gates & Paul Allen
Chairman John W. Thompson
Chief Executive Officer(CEO) Satya Nadella
Chief Financial Officer(CFO) Amy E. Hood
Fortune Global 500 Ranking 15st Out of 500, 2021
Business News 3rd Best Employer’s List, 2019
2021
Key Businesses - Developer of personal computer
software systems & applications
- Research & development
- E-mail services
- Social networking service
- Cloud Computing
- Video Games
- Internet
- Corporate venture capital
Company Philosophy Vision: - To help individuals and businesses
realise their full potential.
Mission: - To empower every person and every
organization on the planet to achieve more.
Company’s Website www.microsoft.com

Portfolio of Products & Services of Microsoft Corporation
Product Key Business areas.

Microsoft Corporation develops, licenses, and supports software, services, devices, and
solutions worldwide.
Major products and services provided by Microsoft corporation are listed below:-
• Windows Server
• Office 365
• Microsoft Office Suite
• Windows Client.
• SQL server
• SharePoint Server
• Microsoft Azure
• Dynamics ERP
• Exchange server
• Skype for business
• Visual Studio
• Xbox
Company Six major business units of Microsoft Corporation in India.

• Microsoft Research India
• Microsoft India (R&D) Private Limited
• Microsoft IT India
• Microsoft Core Services Engineering and Operations India
• Microsoft India Global Delivery
• Microsoft Corporation India (Pvt) Ltd
• Microsoft Customer Service and Support
Segments Products
Software and Windows, Office, Free downloads and security, Internet explorer,
services Microsoft edge and MSN.
Devices and All Windows PC and tablets, PC accessories, Xbox and games.
Xbox
For business Cloud Platform, Microsoft Azure, MS Dynamic 365, Windows for
business, Office for business, Skype for business, Enterprise solutions
and Volume
licensing.
For developers Microsoft Azure, MSDN, TechNet and Visual studio.
and IT Pros
For students Office for students, Onenote in classroom and Microsoft in education.
and Educators

Particulars
Company International Business Machines Corporation (IBM)
Industry Cloud computing ; Cognitive computing
Headquarter Armonk, New York, U.S.
Founder Charles Ranlett Flint
Chairman Ginni Rometty
Chief Executive Officer(CEO) Arvind Krishna
Chief Financial Officer(CFO) James J. Kovanaugh
Fortune Global 500 Ranking 42nd out of 500, 2021
Business News Acquired Red Hat in 2019 for $ 190.00 per Share in cash
In 2019, granted patents across key technology area
Ranking on Forbes World list 2021 59st Largest Corporations List
2nd Best Employer’s List
Key Businesses - cloud computing
- cognitive computing
- commerce
- data and analytics
- Internet of Things (IoT)
- IT infrastructure
- Mobile
- security
Company Philosophy Vision: - IBM should be first and foremost on any new
enterprise data centre migration shortlist
Mission: - IBM’s corporate mission is “to lead in the
invention, development and manufacture of the
industry’s most advanced information technologies,
including computer systems, software, storage systems
and microelectronics
Company’s Website www.ibm.com

Portfolio of Products & Services of International Business Machines Corporation (IBM)
Product & Key business areas.

Services
• Technologies
▪ Analytics
▪ Artificial intelligence
▪ Automation
▪ Blockchain
▪ Cloud computing
▪ IT infrastructure
▪ IT management
▪ Mobile technology
▪ Security
▪ Software development
• Business needs
▪ Business operations
▪ Collaboration
▪ Commerce
▪ Content management
▪ Customer service and CRM
▪ Finance
▪ Human resources
▪ Marketing and sales
▪ Supply chain management
• Services
▪ Business Consulting
▪ Business Resiliency Services
▪ Cloud services
▪ Digital workspace services
▪ Network Services
▪ IBM Services Platform with Watson
▪ Techology support services
Company Indian Subsidiary of IBM

• IBM India Private Limited
Company Indian Joint Venture of IBM

• Tata Information Systems Limited
Product Analytics, cloud, cognitive, commerce, Internet of things, Industry

segments solutions, systems, Mobile, security, Social
Service Business consulting, Technology services, financing, Industry expertise,
segments Training and skills (US)

Particulars
Company Intel Corporation
Industry Semi-conductors
Headquarter Santa Clara, California, U.S.
Founder Gordon Moore & Robert Noyce
Chairman Omar Ishrak
Chief Executive Officer(CEO) Patrick Paul Gelsingern
Chief Financial Officer(CFO) George Davis
Fortune Global 500 Ranking 40th out of 500, 2021
Business News Acquired AI chip maker ‘Habana Labs’, for approx..
$ 2 billion in Dec’2019
Sold majority smartphone modem business to Apple
valued at $1 billion in 2019
Ranking on Forbes World list 36th Largest Corporations List,

Key Businesses
- Semiconductor chip maker & microprocessor
manufacturing business.
Company Philosophy Vision: - If it's smart and connected, it's best with
Intel.
Mission: - Delight our customers, employees, and
shareholders by relentlessly delivering the platform
and technology advancements that become
essential to the way we work and live
Company’s Website www.intel.com

Portfolio of Products & Services of Intel Corporation
Products Key products offered by Intel

• Central processing units
• Microprocessors
• Integrated graphics processing units (iGPU)
• Systems-on-chip (SoCs)
• Motherboard chipsets
• Network interface controllers
• Modems
• Mobile phones
• Solid state drives
• Wi-Fi and Bluetooth Chipsets
• Flash memory
• Vehicle automation sensors
• Software
• Intel Gateways
Product segments Brands

Devices and systems 2 in 1 & Ultrabook TM, Cable Modems, Desktops, Drones, Intel®
Compute Card, Intel® Compute Stick, Intel® NUC, Laptops,
Microservers, Mini PCs, Servers, Smart Phones, Tablets,
Workstations, etc.
Processors Intel® Core TM, Intel® Xeon®, Intel® Atom TM, Pantium,
Celeron®, etc.
Boards and kits Intel® Curie ™M SoC, Intel® Joule TM, Intel® Galileo Development
Board, Intel® Quark TM D2000 Development Kit, Intel® Quark SE
Microcontroller
C1000 Evaluation Kit, Server Motherboards, etc.
Chipsets Mobile, Desktop, Server and Embedded.
Server Products Data Center Blocks, Server Boards, Server Systems, Server
Chassis, Accelerator Cards, RAID Products and Server
Management.
Networking and Ethernet Products and Fabric Products
communications
Wireless Cellular Modems
Others Software, Intel Gateways, etc.

Particulars
Company Hewlett-Packard Company (HP)
Industry Computer hardware & software; IT services &
consulting
Headquarter Palo Alto, California, U.S.
Founder Bill Hewlett & David Packard
Chairman Chip Bergh
Chief Executive Officer(CEO) Enrique Lores
Chief Financial Officer(CFO) Marie Myers
Fortune Global 500 Ranking 56th out of 500, 2021
Business News Launched the World’s first notebook with ocean-
bound plastics in Sept’19
2021 197th Best Employer’s List,2021
Key Businesses - Hardware & software services
- IT Products
Company Philosophy Vision: - To create technology that makes life
better for everyone, everywhere — every
person, every organization, and every
community around the globe
Company’s Website www.hp.com

Portfolio of Products & Services of HP
Products Key products offered by HP

• Printers
• HP Software products
• HP Converged Cloud products
• Digital Cameras
• Scanners
• Tablet computers
• Mobile phones
• Pocket Computer
• Desktop calculators and computers
• Business desktops
• Thin clients
• Personal desktops
• Business notebooks
• Personal notebooks
• Workstations
• Servers
• Enterprise storage
• "StorageWorks" Storage element managers
• Storage area management
• ProCurve
• Telepresence and videoconferencing
• External hard disk drives
Particulars
Company Apple Inc.
Industry Technology
Headquarter Cupertino, California, U.S.
Founder Steve Jobs , Steve Wozniak & Ronald Wayne
Chairman Arthur D. Levinson
Chief Executive Officer(CEO) Tim Cook

Chief Financial Officer(CFO) Luca Maestri
Fortune Global 500 Ranking 3rd out of 500, 2021
Business News Acquired shazam app in 2018 for indisclosed
amount
Key Businesses - Designs, develops & sells consumer
electronics, computer software & online
services
Company Philosophy Vision: - To produce high-quality, low cost, easy to
use products that incorporate high technology for
the individual. We are proving that high technology
does not have to be intimidating for non-computer
experts
Mission: - Apple is committed to bringing the best
personal computing experience to students,
educators, creative professionals and consumers
around the world through its innovative hardware,
software and Internet offerings.
Company’s Website www.apple.com
Portfolio of Products & Services of Apple Inc.
Products Key products offered by Apple Inc.

• Mac
• iPod
• iPhone
• iPad
• Apple Watch
• Apple TV
• HomePod
• Software
• Electric vehicles
• Apple Energy, LLC is a wholly owned subsidiary of Apple Inc. that sells solar energy
Services Key services offered by Apple Inc.

• Apple Pay
• Apple Store
• iTunes Store
• App Store
• Mac App Store
• iBooks Store
• iCloud
• Apple Music

Particulars
Company Walmart Inc.
Industry Retail
Headquarter Bentonville, Arkansas, U.S.
Founder Sam Walton
Chairman Greg Penner
Chief Executive Officer(CEO) Doug McMillon
Chief Financial Officer(CFO) Brett Biggs
Fortune Global 500 Ranking 1 out of 500, 2021
Business News Walmart India & HDFC Bank announced co-
branded credit card exclusively for over 1
million ‘Best Price’ members in Dec’2019
Walmart acquires 77% shares of Flipkart on 9th
May’18
2021
Key Businesses - Chain of hypermarkets, discount
department stores, and grocery stores.
Company Philosophy Vision: - To be the best retailer in the hearts
and minds of consumers and employees
Mission: - “To save people money so they can
live better.”
Slogan: - Save money. Live better
Company’s Website www.walmart.com
Portfolio of Products & Services of Walmart Inc.
Products Key products offered by Walmart Inc.

• Electronics
• Movies and music
• Home and furniture
• Home improvement
• Clothing
• Footwear
• Jewelry
• Toys

• Health and beauty
• Pet supplies
• Sporting goods and fitness
• Auto
• Photo finishing
• Craft supplies
• Party supplies
• Grocery
Services Key services offered by Walmart Inc.

• Walmart-2-Walmart
• Walmart MoneyCard
• Pickup Today
• Walmart.com
• Walmart Pay
Retail Operating divisions of Walmart Inc.

Corporation
• Walmart U.S.
• Walmart International
• Sam's Club
• Global eCommerce
Particulars
Company Goldman Sachs
Industry Financial Services
Headquarter 200 West Street, New York, NY 10282, U.S.
Founder Marcus Goldman and Samuel Sachs
Chairman David M Solomon
Chief Executive Officer(CEO) David M Solomon
Chief Financial Officer(CFO) Stephen Scherr
Fortune Global 500 Ranking 59th Out of 500 (2019-20)
Business News Named top M&A financial adviser in the US for
Q1
Money management Executive Top Women in
Asset Management (April 2020)

2021 660th on Forbes World’s best Employer, 2021
Key Businesses - Investment management
- Securities, asset management
- Prime brokerage, and
- Securities underwriting
- It also provides investment banking to
institutional investors
Company Philosophy Mission: - Committed to distinctive culture and

set of core values, These values are reflected
in our Business Principles, which emphasize
placing our clients’ interests first, integrity,
commitment to excellence and innovation, and
team work.
Company’s Website www.goldmansachs.com
B. The Advent of Startups

The term startup refers to a company in the first stages of operations. Startups are
founded by one or more entrepreneurs who want to develop a product or service for which
they believe there is demand. These companies generally start with high costs and limited
revenue, which is why they look for capital from a variety of sources. Generally speaking,
these businesses focus on disrupting status quo with advanced technology and digitisation
of existing business models. Such new, innovative businesses are called start-ups.
Some of the big names in India in this arena are Flipkart, Oyo Rooms, CRED, Udaan,
Zerodha, Groww, Byju’s, Vedantu, ola cabs to name a few.
Entrepreneur; the risk taker, the believers - develop, and validate a scalable business
model. At the beginning, startups face high uncertainty and have high rates of failure, but
a minority of them do go on to be successful and influential.
Some startups become unicorns (privately held startup companies valued at over USD 1
billion).
The startup ecosystem consists of the individuals (entrepreneurs, venture capitalists,

angel investors, mentors, advisors); institutions and organizations (top research
universities and institutes, business schools and entrepreneurship programs and centres
operated by universities and colleges, non-profit entrepreneurship support organizations,
government entrepreneurship programs and services, Chambers of commerce) business
incubators and business accelerators and top-performing entrepreneurial firms and
startups.
A region with all of these elements is considered to be a strong startup ecosystem. In India
Bengaluru is one of the most influential places for start-ups with all major start-ups
budding and growing in the region. With the technology advancement and availability of
good talent and support, a lot of smart and dedicated individuals have setup start-ups and
compete in an open market to win maximum customers for their respective industries and

attract funds for growth. In India it is still in initial stages, unlike western countries where
it has reached a stable stage. Nonetheless, in Asia the potential is huge and highly
competitive, thus, the space is exciting to study and be a part of.

GOVERNMENT POLICIES FOR BUSINESS
GROWTH
Introduction & Pre/Post 1991 era.

Government policies for business growth are the policies and laws framed by the
government for growth and development of any business. Legal processes, tax policies,
business restrictions, financial reporting of any nation follows from government policies.
Before 1991 Indian economy was a closed economy. There were a lot of restrictions from
government in doing trade or business in areas like imports, foreign direct investment etc.
Private sectors players were having a very limited role in economy. Public sectors companies
dominated our Indian economy. Government controlled and regulated everything.
But post 1991, lot of reforms and measures were introduced by the government for the
revival, growth and development of businesses. Indian economy was now an open economy.
Introduction of new government policies brought a beneficial change in the business
environment of the country and Indian economy as a whole began to move forward towards
the verge of revival.
Macro Policy Indicators

GDP, inflation, tax rates, interest rates, and exchange rates are the five most significant macro
policy indicators impact business.
Variable Direction Meaning

GDP Rising Economic optimism; high demand expectations
Inflation Moderate Demand and profit expectations
Tax Lower Incentive for investors in the form of post-tax business
income
Interest Lower Lower cost of funds
Exchange Moderate Protection to domestic production; incentive for exports
Policies in the Contemporary Global Economies.

Efforts were made for improving and enhancing economic policies. These efforts were
commonly referred to as LPG i.e. Liberalization, Privatization and Globalization.
• Liberalization: -

Liberalization refers to relaxation and easing of economic policies by the
government so as to make process and path of doing business easier and smoother.
Example: - Simplification of taxes, abolishment of Licence Raj and Inspector Raj etc.
• Privatization: -
Privatization refers to transfer of ownership, property or business from public sector
(i.e. government) to private sector.
Example: - Videsh Sanchar Nigam Limited (VSNL), once a fully owned government
company, was eventually taken over by a private player named Tata Telecom.
• Globalization: -
Globalization refers to removal of cross-border barriers on trade and commerce like
removal of restrictions on imports & exports, allowing foreign investments etc.
thereby giving birth to a business environment which is free from boundaries. It
empowers an organisation to grow its wings of business internationally and globally.
Example: - Globalization of Media & Entertainment -Netflix is the world's leading
internet entertainment service with 130 million memberships in over 190 countries
providing products likeTV series, documentaries, feature films and much more.
Meaning of Policies.
Policies can be defined as a plan or course of action that are primarily used for making
decisions , framing laws, setting guidelines and rules for a business organisation.
In India elections are conducted and the majority vote winning political party forms the
government. This government possess and holds the power to take decisions and frame
policies.
Example: - In India BJP government won the elections in 2014 and after coming into
power it framed various policies like LPG connection for all, bank accounts for all
(commonly known as Pradhan Mantri Jan Dhan Yojna) etc.
Politics-Policy relationship Model:-

Politics-Policy relationship model is also called as ‘Black Box Model’ or ‘Feedback
Approach’. In this type of model government obtains feedback from the public in respect
of the policies framed by them and after getting feedbacks, if required, makes necessary
changes in those earlier framed policies and then re-implements the revised policy again.
Example:-This model can be understood by a very recent example of implementation of
GST Law in India on 1st July 2017. Post implementation of GST law, government
continuously kept on taking feedbacks from people of the country to constantly
improve, change and ease the newly introduced GST law so that it becomes more

convenient and easier for common mass to abide by and comply with newly launched
GST Law.
Public Policy.
Public policy is guided by Social, Cultural, Religious and Political factors.
Some classic examples of public policies framed and implemented in India in relation to
political, social, cultural & religious factors are: -
(a) Political Factor: -

Coke (a foreign Company) was forced to exit its business operations from India
because the then government believed strongly in Swadeshi (i.e. Indian) goods.
Afterwards in 1990, Coke was able to resume its business operations again in India
because now the current government of that period lifted restrictions on it business
activities.
(b) Social & Cultural factor: -
Reservation of special compartments and seats exclusively for ladies in public
transport system such as railways, buses etc.
(c) Religious factor: -
Equal respect for all caste & religions in India can be termed as a religious policy
which was framed in the constitution of India.
The nature of public policies consists of following characteristics:-
• Public policies are always goal oriented and are framed by the government to provide
benefits to large number of people and to attain a certain defined objective.
Example: - Implementation of GST (Goods & Services Tax) as a single indirect tax
structure in order to remove complexity in compliance of various indirect taxes like
excise duty, service tax, sales tax ,VAT etc. ; Introduction of Companies Act 2013
thereby scrapping earlier Companies Act 1956 in order to update and simplify
Companies Law.

• Public policies represents the outcome of government’s collective actions.
Example: - Indian Legal system wherein law, rules, regulations, duties etc. are defined
by collective actions.
• Public policy is what the government actually decides or chooses to do.

Example: - Laws & regulations made by government primarily focussing towards
growth and development of infrastructure, agriculture sector etc.
• Public policies are always framed in positive direction so as to resolve a particular

specific problem but sometimes it may also turn out to be negative if such policies
adversely impacts society as a whole.
Example: - Policies framed by democratic government usually benefits masses
whereas policies framed by dictator of a particular nation may largely effect people
of that nation in a negative manner.
Public Policy Process

Policy making is a dynamic and continuous process.
Policy Formulation Process framework is a vicious circle and involves following

components or steps which are inter-connected to each other in a chained manner:-
✓ Problem Identification
✓ Policy Formulation,
✓ Adoption of the policy,
✓ Policy Implementation
✓ Policy Evaluation.
The Nature of Public Policy

Three types of public policies are:-
1. Restrictive policies: -
It restricts, limits and discourages certain activities.
Example: - Custom duty imposed on imported goods so as to protect Indian goods,
ban on sale of liquor in some states etc.
2. Regulatory practices: -
It regulates and controls activities or process of a particular sector of economy.
Example: - Securities & Exchange Board of India (SEBI) regulates and controls Stock
& Capital markets in India.
3. Facilitating policies: -

It is a policy which makes the functioning of another activity easier and smooth.
Example: - National Skills Development Corporation (NSDC) formation is a
facilitating policy of the government of India for development of youth skills to
facilitate employment.
Post-Independence Public Policy

After Independence, India adopted mixed economic policy which contained
characteristics of both capitalistic and communist economic policies. In mixed economic
policy structure, both public as well as private sector companies were allowed to
operate, own and do business. Core sectors like oil, railways etc. were controlled by the
government and non-core sectors like agriculture were given to private sector players.
Post-Independence, Indian economy was in suffering and pain. Industrialisation was very
little and pace of industrialisation was very slow and almost stagnant. To revive the Indian
economy from crisis and misery the then Government of India framed Constitution of
India in 1950. Thus since independence many policies, laws & regulations were enacted,
formulated and implemented by the government for economic growth and social
development of the Indian economy.
Examples of few public policies post-independence are: - Industries (Development &

Regulation Act) 1951, Formation of Planning commission, The New Industrial Policy
1991, Foreign Exchange Management Act (FEMA) 1999 etc.
Need for Reforms

Questions were raised on India’s mixed economy system due to high taxation rates, huge
loss in industries, emergence of trade-unionism and also due to various other restrictions
imposed by the government of our country. Therefore, in the year 1992, government was
eventually forced to open up the Indian economy. Private sector industries began to
emerge and divestment (i.e. sale of shares to public) was carried out in public sector
enterprises.
Policy Decision & Goal

Policy emerges from decisions and decision is taken in line with goal. The essence of
decision making lies in the fact that one has to make a choice from multiple alternatives
available to him. Thus decision is the act of making a choice.
Regulatory policies with regulation of trade, business etc. and Distributive policies
meant for the benefit of specific sections of the society were laid down by the
government.
Liberalization policy completely changed the face of Indian economy. Foreign exchanges
rules were simplified and foreign funds from FII (Foreign institutional Investors) and FDI
(Foreign Direct Investment) started to flow in Indian economy.
Privatization
Privatisation policy was implemented in 1991 to deal with slow and stagnant growth of
Indian economy and Indian industries. Continuous shortage of foreign currency problem
was being faced by the government due to inefficient business operations of government
owned companies. Thus, to cope up with immediate shortage of foreign currency, Foreign
Direct Investment (FDI) was now being allowed by the government.
Privatisation helped in increasing market potential and competitiveness. It also paved way
for restructuring and reforming public sector companies.
Following types of Privatisation were prevalent: -
• Delegation: - Majority control vested in the hands of the government and private
industries were allowed to play a very limited role in business operations of few
industrial sectors.
• Divestment: - Majority control and responsibility of particular government
company is gradually sold and surrendered to one or more private players.
• Displacement: - Eventually the growth of private sector industries in some sectors
completely eliminated government owned control and domination.
• Disinvestment: - Government sold its stake in public companies to private players.
Foreign Direct Investment (FDI) in India

Foreign direct investment (FDI) is defined as flow of investment in the form of a
controlling ownership in a business in one country by an entity based in another
country. Control is primarily achieved by capturing a majority stake in ownership in a
company or by expanding operations of an existing business in that country.

Quantum of permission of FDI varies from one sector of industries to another sector. In
few sectors like atomic energy, agricultural sector, gambling & betting etc. FDI is
completely restricted. Some examples of permission in few sectors are: -
✓ Infrastructure: - 100%
✓ Automotive: - 100%
✓ Cash & Carry wholesale Model: - 100%
✓ Single Branded Retail: - 100%
✓ Multi Brand Retail: - 51%
✓ Airlines: - 49%
✓ Power Exchange: - 49%
Foreign Institutional Investors (FIIs)

The term FIIs represents Foreign Institutional Investors. Foreign Institutional
investors (FIIs) are entities established or incorporated outside India and make
proposals for investments in India. Institutional investors mainly consist of hedge funds,
insurance companies, pension funds and mutual funds.
FIIs are vital source for inflow of foreign currency for short term period.

ORGANISATIONS FACILITATING BUSINESS
INTRODUCTION
Business Facilitators: -
A Business Facilitator helps in easing and simplifying the process of doing business. It also helps
an organization in accomplishing it goals and objectives.
Business Facilitation System: -

Business Facilitation System is a network or structure which aids in performing business
functions. It comprises of three layers namely: -
(i) Funding & Non-Funding Institutions: -

Funding institutions consists of those institutions which provides funds and financial
assistance to business enterprises.
Example: - The National Bank for Agriculture and Rural Development (NABARD),
Industries Development Bank of India (IDBI) etc.
Non-Funding institutions consists of policy making & executive agencies like The Reserve
Bank of India (RBI), The Securities & Exchange Board of India (SEBI), Competition
Commission of India (CCI) & Insurance Regulatory and Development Authority (IRDA).
(ii) Auxiliaries/ Aids to Trade: -

It consists of organizations such as banking, insurance, transport, warehousing etc.
(iii) Point of Contact(POC) Business facilitators:-

Few examples of POC Business facilitators are given below: -
• Freight Forwarder: -
Freight forwarders act as an intermediary between the shipper and transportation
services and are responsible for the transportation of goods from one destination to
another.
• Business Incubator: -
Business incubators are organizations which helps startup and early stage companies
in achieving growth and success.
• Business Accelerator: -
The attention of business accelerators is on rapid growth and successful product
launch.
• Financial Consultant: -
A financial consultant helps an organization in arrangement of various sources of
finance like debt, equity etc.

Business Facilitators in Financial Sector: -
It comprises of intermediaries in the financial sector which assists various clients in functions
and activities related to banking, finance etc.
Few examples of such intermediaries are Non-Governmental Organisations (NGOs), Village
Knowledge Centre, insurance agents, retired bank employees etc.
Government as a Business Facilitator: -

The government facilitates business by defining various business friendly policies. It also creates
various funding and non-funding institutions for implementation of business policies.
Examples of non-funding institutions are RBI, SEBI, CCI, IRDA etc. whereas examples of funding
institutions are NABARD, IDBI etc.
LPG or GPL policy i.e. the policy of liberalization, privatization and globalization is regarded as
a significant advancement in business facilitation in India.
NON-FUNDING INSTITUTIONS FOR BUSINESS FACILITATION IN INDIA

(INDIAN REGULATORY BODIES)
Non Funding institutions primarily consists of policy making & executive agencies like The Reserve
Bank of India (RBI), The Securities & Exchange Board of India (SEBI), Competition Commission of India
(CCI) & Insurance Regulatory and Development Authority (IRDA).These institutions do not invest in
businesses and therefore they are called as non-funding institutions.
(1) Reserve Bank of India (RBI)
Introduction: -
The Reserve Bank of India (RBI) is the central bank of India and was established on 1st April
1935. It is an independent authority which regulates the financial sector in India comprising
of commercial banks, financial institutions and non-banking finance companies.
Role of RBI: -
• It plays a vital role in facilitating and promoting business and trade in the economy.
• It helps in achieving economic growth & stability.
• It controls and formulates India’s monetary policy.
• It advises government in formulation of economic & financial policies.
• It helps in development of banking system & financial institutions.
• It helps in keeping inflation in check.
• It helps the government to raise money from public by way of issuing bonds and
government approved securities.

Functions of RBI: -
• Issuer of Currency: -
RBI prints money/currency and formulates the monetary policy with regard to money.
• Banker to the government: -

(i) It acts as a banker both to Central & State Government. It collects receipts
of funds and makes payment on behalf of the government.
(ii) It helps the government in raising of loans & debts from the public.
(iii) It also provides short term credit to the government.
(iv) It also sells Treasury bills to remove surplus liquidity in the economy.
• Banker to banks: -
(i) RBI controls and supervises all the commercial banks in India.
(ii) It also provides financial support to scheduled banks and commercial banks
in India in the form of short-term loans & advances.
• Custodian of foreign exchange reserves: -

RBI maintains the value of Indian Rupee in the global economy. It manages foreign
exchange reserves of the country. It is also designated with the task to maintain
enough foreign reserves in order to deal with foreign exchange fluctuations and
balance of payment problems.
• Controller of Credit: -
The primary function of RBI is to control credit operations of banks. Credit control
helps in maintaining price stability in the economy.
• Promotional Functions: -
It plays a vital role in promoting commercial & co-operative banking in the country.
• Collection & publication of data: -

RBI also collects and publishes data related to banks and other financial institutions.
Role of RBI in Business Facilitation: -
• Currency Policy: -
RBI ensures that the public has adequate supplies of currency notes and coins because
money supply is very critical in effective functioning of the economy. It also plays an
important role in maintaining exchange rate of Indian Rupee against other foreign
currencies.
• Credit Policy: -
RBI controls the credit available in the market through banks and other lending
institutions. It does so by implementing various qualitative and quantitative measures
which directly affects the overall money supply in the economy.

▪ Qualitative Measures: -
Qualitative measures are implemented by RBI to increase or decrease the
availability of credit in the economy.
Qualitative measures of credit control are also applied by the RBI for
specific purpose on specific banks or financial organizations. If it feels that
a particular industry/sector needs more loans, then it can relax the norms
for such specific industry/sector and instruct banks to make such loans
available to them. There is also a provision of Priority Lending Sector (PSL)
according to which every bank is required to lend specific percentage of
the resources to the industries/sector included in PSL category.
▪ Quantitative Measures:-
Quantitative controls are designed to regulate the flow of credit created
by the banking system. Some of the quantitative measures adopted by RBI
are discussed in table below:-
Serial Quantitative Definition Present Effect of measures taken by

No. Measures Rate RBI
Taken
(i) Statutory SLR is the amount that commercial 19.25% The flow of credit is reduced
Liquidity banks are required to maintain in the by increasing statutory
Ratio (SLR) form of gold or government approved liquidity ratio.
securities before providing credit to Alternatively, if there is a fall
the customers. in SLR, it increases the money
supply in the economy.
(ii) Bank Rate The rate at which central bank 6.50% Increase in the bank rate will
provides loan to commercial banks is make loans more expensive
called bank rate. for commercial banks
whereas decrease in the bank
rate increases the lending
capacity of banks thereby
increasing flow of credit in
the economy.
(iii) Cash Reserve It refers to the minimum amount of 4% An increase in CRR rate will
Ratio (CRR) funds in cash that a commercial bank eventually lead to
has to maintain with the Reserve considerable decrease in the
Bank of India, in the form of money supply. On the
deposits. contrary, a fall in CRR will
lead to an increase in the
money supply.
(iv) Repo Rate Repo (Repurchase) rate is the rate at 6.25% When the repo rate increases,
which the RBI lends short-term borrowing from RBI becomes
money to the banks against more expensive.
securities.
(v) Reverse repo Reverse repo rate is the rate at which 6.00% An increase in Reverse Repo
rate RBI borrows money from banks. rate decreases the amount of
money available for bank
customers.

• Development of the Financial System: -
Financial system consists of financial institutions, financial instruments and
financial markets. Stable & efficient financial system is very important for economic
development of the nation. RBI helps and provides encouragement in establishment
of banking and non-banking financial institutions so that the credit requirement of
different sectors of the economy can be fulfilled. It also regulates, supervises and
manages the whole financial system.
• Funds Transfer and Payment Mechanism:-

Receipts and payments of both paper based and digital based money in the country
is controlled and regulated by RBI.
(2) Securities & Exchange Board of India (SEBI)
Introduction:-
Particulars Information
Date of Establishment 12th April,1988
Name of the act under which it was The SEBI Act,1992

established
Established By Government Of India
Date of Enforcement 30th January,1992
Headquarters Mumbai, India
Northern Regional Office New Delhi, India
Eastern Regional Office Kolkata, India
Southern Regional Office Chennai, India
Western Regional Office Ahmedabad, India
Name of the previous authority Controller of Capital Issues(CCI)

which SEBI replaced
Primary function/objective of The Controller and regulator of capital and securities
Securities and Exchange Board of markets in India. It also protects the interest of
India (SEBI) investors in the capital market.
Composition details of the board of - A chairman appointed by the Central

SEBI Government of India.
- 2 members from the Ministry of the Central
Government dealing with finance.
- 1 member from the Reserve Bank of India.
- 5 other members appointed by the Central
Government of India.

Functions & Responsibilities of SEBI: -
Three functions of SEBI are: -
(i) Quasi-judicial: -
SEBI can deliver judgments in relation to securities market in cases of fraud and other
unethical practices.
(ii) Quasi-legislative: -
SEBI can frame rules and regulations to protect interests of the investors.
(iii) Quasi-executive: -
SEBI is empowered to conduct investigation and enforce action against violators.
Powers of SEBI: -
(i) To approve and amend laws related to stock exchange.
(ii) To inspect books of accounts of stock exchange and financial intermediaries.
(iii) To ask for periodical returns from recognized stock exchanges.
(iv) To obligate certain companies to list their stocks on stock exchanges.
Role of SEBI in Business Facilitation: -

(i) It helps in the development of capital market in India.
(ii) It helps in regulating the securities market so that the interests of investors can be
protected.
(iii) It helps domestic entities to participate in foreign capital markets and foreign
entities to participate in domestic capital market.
(iv) It assists companies in raising funds from the market via public offerings.
(3) Competition Commission of India (CCI)
There are two types of competition:-
(i) Direct Competition: -

Competition between two similar products is called as direct competition.
E.g. Competition between two beverages ‘Coca Cola and Pepsi’
(ii) Indirect Competition: -

Competition between two close substitute products is called as indirect competition.
E.g. Competition between two phones ‘Android Phone (Vivo) and iPhone (Apple)’

The Competition Act, 2002 - Introduction: -
• The Competition Act, 2002 was enacted by the Government of India in order to
provide ideal environment for healthy competition and to promote economic
development in the Indian market.
• The Competition Act, 2002 has replaced The Monopolies and Restrictive Trade
Practices (MRTP) Act, 1969.
• The Competition Act, 2002 was subsequently amended as Competition
(Amendment) Act, 2007.
• This act led to the constitution of The Competition Commission of India (CCI).
The Competition Act, 2002 – Features:-

• To prevent unfair trade practices that effects competition.
• To promote and sustain healthy competition in the market.
• To protect interest of consumers
• To ensure freedom of trade in Indian markets
The Competition Commission of India (CCI) -Introduction:-
Date of Establishment 14th October,2003
Name of the act under which it The Competition Act, 2002

was established
Established By Central Government of India
Status of The Competition Body corporate having perpetual succession & Common
Commission of India(CCI) Seal
Purpose of CCI To promote fair competition in the market and to keep a

check on unethical trade practices prevailing in the
Indian economy.
Primary objectives of The - To prevent unfair trade practices.
Competition Commission of - To promote competition in markets.
India (CCI) - To protect interest of consumers.
- To ensure freedom of trade in Indian markets.
Composition details of the A chairman & six members appointed by the Central
board of SEBI Government
Role of Competition Commission of India (CCI):-

• To provide a consumer friendly competitive market.
• To ensure fair and healthy competition in the market for growth and development of
Indian economy.
• To enact policies which enables most efficient utilization of economic resources.
• To ensure interaction and cooperation with other regulatory authorities in the
economy.
• To create public awareness and provide training to them about competition issues.

Role of Competition Commission of India (CCI) as a Business Facilitator:-
• To protect firms & businesses from unfair competition.
• To penalize and discourage faulty companies and entities.
• To ensures the survival and co-existence of small and medium sized firms in the
economy.
(4) Insurance Regulatory and Development Authority of India (IRDAI)
Introduction: -
Name of the act under which it The Insurance Regulatory and Development Authority
was established Act, 1999
Established By Government of India
Status of IRDAI Autonomous apex statutory body
Purpose of formation of IRDAI To regulate and develop insurance industry in India.
Primary objectives of IRDAI To protect interests of holders of insurance policies and

to regulate and promote the insurance industry.
Mission Statement of IRDAI: -
• To protect and secure interests of the policyholders.

• To accelerate growth and development of Insurance industry.
• To encourage and develop high standards of integrity and ethics amongst the
insurance industry.
• To ensure speedy settlement of claims and prevent insurance frauds.
• To promote fairness and transparency in insurance market and industry.
• To take action against defaulters.
• To bring optimum self-regulation in day to day working of the industry.
Duties of IRDAI: -
To regulate, promote and ensure orderly growth of the insurance & re-insurance business.
Powers & Functions of IRDAI: -
• To issue or cancel certificate of registration.

• To protect the interest of policy holders of insurance.
• To specify guidelines and provide training to insurance intermediaries & agents.
• To specify code of conduct for surveyors and loss assessors.
• To promote efficiency in the conduct of insurance business.
• To conduct enquiries, investigation and audit of insurance companies.
• To control & regulate rates, terms & condition etc. that insurers offer to their
customers.
• Adjudication of disputes between insurers and insurance company.
• Supervising the functioning of Tariff Advisory Committee.
• To determine the percentage of insurance business to rural and social sector
• To regulate investment of fund by insurance agencies.

Role of IRDAI as a Business Facilitator: -
• It regulates and develops insurance industry.

• It protects the interest of the policy holders.
• It trains and educates general public about the benefits and advantages of insurance
policies
FUNDING INSTITUTIONS (INDIAN DEVELOPMENT BANKS)
Development Banks: -
Development Banks are those banks which provides financial assistance to business entities.
These banks do not seek or accept deposits from the public. They receive funds from government
and other agencies.
There are four important national level development banks for the development of industries.
They are:
(i) Industrial Development Bank of India (IDBI)
(ii) Industrial Finance Corporation of India (IFCI)
(iii) Industrial Credit and Investment Corporation of India (ICICI)
(iv) National Small Industries Development Bank of India (SIDBI)
The National Bank for Agricultural & Rural Development (NABARD):-
• NABARD is the apex development bank for promotion & development of agricultural and
rural sector in India.
• It was set up in 1982 and its headquarters are situated in Mumbai.
• It also looks after the development of cottage & small industries.
• Functions of NABARD: -
(i) Provides finance & credit to agricultural and rural sector.
(ii) Frames rules and policies for rural credit for all financing institutions in India.
(iii) It acts as a link between rural financing institutions and Government of India, State
government & RBI.
(iv) It monitors and evaluates projects refinanced by it.
(v) It provides training to rural institutions.
(vi) It also regulates co-operative and Regional Rural Banks (RRB’s).
• NABARD’s refinance is available to State Co-operative Agriculture & Rural Development

Banks (SCARDBs), State Co-operative Banks (SCBs), Commercial Banks (CBs) and other
financial institutions approved by RBI.
• NABARD also encourages Indian banks to provide finance to Self Help Groups (SHGs) which
comprises mainly of poor woman. It is also associated with ‘SHG Bank Linkage Programme’
• NABARD also focusses on development through other functions such as Natural Resources
Management Programmes, Watershed Development, Tribal Development and Farm
Innovation.

COMMON BUSINESS TERMINOLOGIES
FINANCE, STOCK AND COMMODITY MARKET TERMINOLOGY

Agent: A brokerage firm is said to be an agent when it acts on behalf of the client in buying or
purchasing of shares. At no point of time in the entire transaction the agent will own the shares.
Amortize: To amortize is to charge a regular portion of an expenditure over a fixed period of time. For
example: If something cost ` 1,00,000 and is to be amortized over ten years, the financial reports will
show an expense of ` 10,000 per year for ten years. Intangible assets such as patents and trademarks
are amortized in to profit and loss account.
Annuity Due: An annuity whose payments occur at the beginning of each period.
Annuity: A series of payments of an equal amount at fixed intervals for a specified number of periods.
Appreciation: Appreciation is an increase in value.
Arbitrage: Arbitrage is the simultaneous purchase and sale of two identical commodities or
instruments. This simultaneous sale and purchase is done in order to take advantage of the price
variations in two different markets. For example: Purchase of gold in one nation and the simultaneous
sale in another.
Asset: Asset means an economic resource that is expected to be of benefit in the future.
Current Assets: Current Assets are those assets that can be expected to turn into cash within a year
or less. For example: Cash, marketable securities, accounts receivable, and inventory
Fixed Assets: Fixed Assets cannot be quickly turned into cash without interfering with business
operations. These are valuable items that last more than one year. For example: Land, buildings,
machinery, vehicle, equipment, furniture, and long‐term investments.
Intangible Assets: Intangible Assets are items such as patents, copyrights, trademarks, and other kinds
of rights or things of value to a company, which are not physical objects. Often, they do not appear on
financial reports.
Ask/Offer: The lowest price at which an owner is willing to sell his securities. The offer is higher than
the bid.
Audit: Audit is a careful review of financial records of an organisation to verify their accuracy.
Bad debts: Bad debts are amounts owed to a company that are not going to be paid. An account
receivable becomes a bad debt when it is recognized that it won’t be paid. Sometimes, bad debts
are written off when recognized.
Balance sheet: Balance Sheet is a statement of the financial position of a company at a single
specific time

Bond: Bond is a type of long-term Promissory Note. Bonds can either be registered in the owner’s
name or are issued as bearer instruments. It is a written record of a debt payable in the future. The
bond shows amount of the debt, due date, and interest rate. It is a promissory note issued by
companies or government to its buyers. It speaks about specified amount held for a specified time
period by the buyer.
Book Value: Total assets minus total liabilities means book value of Shareholder’s equity. Book value
also means the value of an asset as recorded on the company’s books or financial reports.
Breakeven point: It is the amount of revenue from sales which exactly equals the amount of expense.
Breakeven point is often expressed as the number of units that must be sold to produce revenues
exactly equal to expenses.
Budget: Budget is a detailed plan for the future, usually expressed in formal quantitative terms. It is
also a detailed plan for the acquisition and use of financial and other resources over a specified time
period.
Bears: These stock-market players are pessimists; they expect share prices or any other type of
investment to fall. In a ‘bear market’ the general sentiment is that prices are going to go lower and
majority of dealers will sell as quickly as possible for fear of holding shares which diminish in value.
Base Price: This is the price of a security at the beginning of the trading day which is used to determine
the Day Minimum/Maximum and the Operational ranges for that day.
Basket Trading: Basket trading is a facility by which investors are in a position to buy/sell all 30 scrips
of Sensex in the proportion of current weights in the Sensex, in one go.
Bear Market: A market in which stock prices are falling consistently.
Badla: Carrying forward of transaction form one settlement period to the next without effecting
delivery or payment. Badla involves carrying forward of a transaction from one settlement period to
the next. The carry-forward is done at the making up price, which is usually the closing price of the
last day of settlement. A badla transaction attracts the following payments / charges:
a. ‘margin money’ specified by the stock exchange board; and
b. contango or badla charges (interest charges) determined on the basis of demand and supply
forces.
Blue Chips: Blue Chips are shares of large, well established and financially sound companies with an
impressive record of earnings and dividends. Generally, Blue Chip shares provide low to moderate
current yield and moderate to high capital gains yield. The price volatility of such shares is moderate.
Beta: It is a measurement of relationship between stock price of any particular stock and the
movement of whole market.
Bid: It is the highest price a buyer is willing to pay for a stock. It is opposite of ask/offer.
Broker/Brokerage Firm: A registered securities firm are called broker/brokerage firm. Broker’s acts
as an advisor for purchase and sell of listed stocks, they do not own the securities at any point of the
time. But they charge a commission for their service.
Bull Market: A market in which the stock price is increasing consistently.

Business Day: Days on which stock markets are open. Monday to Friday, excluding public holidays.
Call: The demand by a company or any other issuer of shares for payment. It may be the demand for
full payment on the due date, such as, for example, with a rights issue. It may, alternatively, be the
demand for a further payment when the total amount is payable by instalments.
Bonus: A free allotment of shares made in proportion to existing shares out of accumulated
reserves. A bonus share does not constitute additional wealth to shareholders. It merely signifies
recapitalization of reserves into equity capital.
Book Closure: Dates between which a company keeps its register of members closed for updating
prior to payment of dividends or issue of new shares or debentures.
Brokerage: Brokerage is the commission charged by the broker. The maximum brokerage chargeable
is determined by SEBI.
Bull: A bull is one who expects a rise in price so that he can later sell at a higher price.
Business Risk: The riskiness inherent in the firm’s operations if it uses no debt.
Buyer: The trading member who has placed the order for the purchase of the securities
Call Option: An option that is given to investor the right but not obligation to buy a particular stock
at a specified price within a specified time period.
Capital Budgeting: The process of planning expenditure on assets whose cash flows are expected to
extend beyond one year.
Capital Gains Yield: The capital gain during a given year divided by the beginning price.
Capital Markets: The financial markets for stocks and for intermediate or long-term debt.
Cash Budget: A table showing cash flows (receipts, disbursements, and cash balances) for a firm over
a specified period.
Credit Period: The length of time for which credit is granted.
Closing Price: The trade price of a security at the end of a trading day. Based on the closing price of
the security, the base price at the beginning of the next trading day is calculated.
Commercial Paper: Unsecured, short-term promissory notes of large firms, usually issued in
denominations of ₹ 100,000 or more and having an interest rate somewhat below the prime of
lending rate of commercial bank.
Commodities: Product used for commerce that are traded on a separate, authorized commodities
platform. Commodities include agricultural products and natural resources.
Convertible Securities: A security (bonds, debentures, preferred stocks) by an issuer that can be
converted into other securities of that issuer are known as convertible securities. The conversion
usually occurs at the option of the holder, but it may occur at the option of the issuer.
Consolidation: Business combination of two or more entities that occurs when the entities transfer
all of their net assets to a new entity created for that purpose.

Creditors: These are people/organisations you owe money to at any particular time – the value of
the creditors is included in the published accounts.
Debentures: A type of debt instrument that is not secured by physical assets or collateral.
Debentures are backed only by the general creditworthiness and reputation of the issuer. A
debenture is an unsecured form of investment.
Debtors: Although debtors are considered an asset, if you are owed a vast amount, this might
indicate problems collecting monies owed and possible cash flow difficulties. A debtor is a company
or individual who owes money.
Defensive Stock: A stock that provides constant dividends and stable earnings even in the periods of
economic downturn i.e. even in the extreme critical situations of the stock market these companies
continue to pay the dividends at a constant rate.
Depreciation: It is an expense allowance made for wear and tear on an asset over its estimated useful
life.
Derivatives: A security whose price is derived from one or more underlying assets. The most
common underlying assets include stocks, bonds, commodities, currencies, interest rates and
market indexes.
Diversification: Reducing the investment risk by purchasing shares of different companies operating
in different sectors.
Dividend: A portion of the company’s earnings decided to pay to its shareholders in return to their
investments. It is usually declared as a percentage of current share price or some specified rupee
value, usually decided by the board of directors of the company.
Equity (Net Worth): The capital supplied by common stock holders common stock, paid-in capital,
retained earnings, and, occasionally, certain reserves. Total equity is common equity plus preferred
stock.
Exchange Rate: The number of units of given currency that can be purchased for one unit of another
currency.
Face Value: It is the cash denomination or the amount of money the holder of the individual security
going to earn from the issuer of the security at the time of maturity. It is also known as par value.
Financial Instrument: A financial instrument is anything that ranges from cash, deed, negotiable
instrument, or for that matter any written and authenticated evidence that shows the existence of a
transaction or agreement.
Financial Intermediary: A financial intermediary is basically a party or person who acts as a link
between a provider who provides securities and the user, who purchases the securities.
Government Bonds: A government bond, which is also known as a government security, is basically
any security that is held with the government and has the highest possible rate of interest.
Hedge: Hedge is a strategy that is used to minimize the risk of a particular investment and maximize
the returns of an investment. A ‘hedge’ strategy is, most of the times, implemented with the help of
a hedge fund. This term has been written from the banker’s point of view and may be interpreted
differently in the field of financial and commodity market.

Holding Period: The holding period is the time duration during which a capital asset is held/owned
by an individual or corporation. The holding period is taken into consideration, while pledging the
asset as collateral.
Income Stock: A security which has a solid record of dividend payments and offers the dividend
higher than the common stocks.
Index: A statistical measurement of change in the economy or security market. Such indices have
their own calculation methodology and are usually measured as a percentage change in the base
value over the time.
Initial Public Offering (IPO): A company’s first issue of shares to general public. IPOs are issued by
smaller, younger companies seeking funds for expansion and growth, but large companies also
practice this to become publicly traded companies.
Internet Trading: Internet Trading is a platform with Internet as a medium. Internet trading execution
takes place through order routing system, which will rout traders order to exchange trading system.
Thus, traders sitting in any part of the world can be able to trade using their brokers Internet Trading
System. The Securities and Exchange Board of India (SEBI) approved Internet Trading in January 2000.
Limit Order: An order to buy or sell a share at a specified price. The order will be executed only at
the specified limit price or even better. A limit order sets a minimum price the seller is willing to
accept and maximum price the buyer is willing to pay for it.
Liquidation: A liquidation occurs when the assets of a division are sold off piecemeal, rather than as
an operating entity.
Listed Stocks: The shares of a company that are traded on the stock exchange. The company has to
pay fees to be listed in the stock exchange and abide by the regulations of the stock exchange to
maintain listing privilege.
Market Capitalization: The total value in rupee of all of a company’s outstanding shares. It is
calculated by multiplying all the outstanding shares with the current market price of one share. It
determines the company’s size in terms of its wealth.
Money Market: Money market is component of financial market for asset involved in short term
borrowing, lending, buying and selling with original maturities of one year or less.
Mutual Fund: A pool of money managed by experts by investing in stocks, bonds and other
securities with the objective of improving their savings. These experts will create a diversified
portfolio from these funds.
One-sided Market: A market that has only potential sellers or only potential buyers but not both.
Out-of-The-Money (OTM): For call options, this means the stock price is below the strike price. For
put options, this means the stock price is above the strike price. The price of out-of-the-money
options consists entirely of “time value.”
Portfolio: Holding of any individual or institution. A portfolio may include various type of securities
of different companies operating in different sectors.
Pre-opening Session: The pre-open session is for duration of 15 minutes i.e. from 9:00 AM to 9:15
AM. In pre-open session order entry, modification and cancellation takes place.

Price Earnings (P/E) Ratio: The market price of a share of stock divided by the earnings (profit) per
share. P/E ratios can vary from sky high to dismally low, but may not reflect the true value of a
company.
Put Option: An option that gives an investor the right to sell a particular stock at a stated price
within a specified time period. Put option is purchased by those who believe that particular stock
price is going to fall down than the stated price.
Return On Investment (ROI): ROI is a measure of the effectiveness and efficiency with which
managers use the resources available to them, expressed as a percentage. Return on equity is
usually net profit after taxes divided by the shareholders’ equity. Return on invested capital is
usually net profit after taxes plus interest paid on long‐term debt divided by the equity plus the long‐
term debt. Return on assets used is usually the operating profit divided by the assets used to
produce the profit. Typically used to evaluate divisions or subsidiaries. Different companies and
different industries have different ROIs.
Risk: A probable chances of investments actual returns will be reduced then as calculated. Risk is
usually measured by calculating the standard deviation of the historical price returns. Standard
deviation is directly proportional to the degree of risk associated.
Securities: A transferable certificate of ownership of investment in products such as stocks, bonds,

future contracts and options which an individual holds.
Strike Price: The price at which the holder of an option can buy (in case of call option) or sell (in case
of put option) the securities they hold when the option is executed.
Stock: A certificate (or electronic or other record) that indicates ownership of a portion of a
corporation; a share of stock. Preferred stock promises its owner a dividend that is usually fixed in
amount or percent. Preferred shareholders get paid first out of any profits. They have preference.
Common stock has no preference and no fixed rate of return. Stock also means the stock of goods,
the stock on hand, the inventory of a company.
Stock Split: An attempt to increase the number of outstanding shares of a company by splitting the
existing shares. It is usually done to increase the availability of shares in the market. The usual split
ratio is 2:1 or 3:1, i.e. one share is split into two or three.
Thin Market: A market in which there are comparatively low number of bids to buy and offers to sell.
Since the number of transactions is low, the prices are very volatile.
Trading Session: The period of time stock market is open for trading for both sellers and buyers, within
this time frame all the orders of the day must be placed. [9:15 AM to 3:30 PM] Here all the orders
placed in pre-opening sessions are matched and executed.
Venture Capital: Venture Capital is a form of private equity and a type of financing that investors
provide to startup companies and small business that are believed to have long term growth potential.
Yield: It is the measure of return on investments in terms of percentage. Stock yield is calculated by
dividing the current price of the share by the annual dividend paid by the company for that share. For
example, if the current price of the share is ₹ 100 and the dividend paid is INR 5 per share annually,
then the stock yield is 5%.

Yield to Call (YTC): The rate of return earned on a bond if it is called before its maturity date.
Zero Coupon Bond: A bond that pays no annual interest but is sold at a discount below par, thus
providing compensation to investors in the form of capital appreciation.
MARKETING TERMINOLOGY
Advertising Campaign: An organization’s programme of advertising activities over a particular period
with specific aims, for example an increase in sales or awareness of a product.
Advertising: Advertising is any paid form of non-personal presentation and promotion of ideas, goods
and services through mass media such as newspapers, magazines, television or radio by an identified
sponsor.
After-Sales Service: The services received after the original goods or services have been paid for. Often
this service is provided as part of a warranty or guarantee scheme associated with the product/service
purchased.
Agent: Agent is a part of the distribution channel. An agent is effectively a wholesaler who
represents buyers and sellers on a relatively permanent basis, performs only a few functions and
does not take title to goods.
Barrier to Trade: Something that makes trade between two countries more difficult or expensive.
For example: A tax on imports.
Barriers to Entry/Exit: Economic or other characteristics of a marketplace that make it difficult for
new firms to enter or exit. Examples include: economies of scale; product differentiation; capital
requirements; cost disadvantages other than size; access to distribution channels; government
policy; etc.
Benchmarking: Benchmarking is the process of comparing the products and services of a business
against those of competitors in a market, or leading businesses in other markets, in order to find
ways of improving quality and performance. An analysis of competitor strengths and weaknesses;
used to evaluate a firm’s relative competitive position, opportunities or improving, and
success/failure in achieving such improvement.
Brand: A brand is the specific type of the product form. A brand – represented by a brand name,
symbol, design, logo, packaging – is the identity of a particular product form that customers
recognise as being different from others.
Brand Equity: Brand equity refers to the value of a brand. Brand equity is based on the extent to
which the brand has high brand loyalty, name awareness, perceived quality and strong product
associations. Brand equity also includes other “intangible” assets such as patents, trademarks and
channel relationships.
Brand Loyalty: It is a strongly motivated and long standing decision of the customer to purchase a
particular product or service.
Brand Recognition: It is a customer’s awareness that a brand exists and is an alternative to

purchase.

Business Model: A company’s business model is management’s storyline for how the strategy will be
a money maker.
Business Portfolio: The business portfolio is the collection of businesses and products that make up
the business.
Business to Business: Marketing activity directed from one business to another. This term is often
shortened to “B2B”.
Buying Behaviour: Buying behaviour concerns the process that buyers go through when deciding
whether or not to purchase goods or services. Buying behaviour can be influenced by a variety of
external factors and motivations, including marketing activity.
Cash Discount: A reduction in the price of goods given to encourage sale on case basis.
Competitive Advantage: Advantages that a firm has over its competitors.
Competitive Position: The position that a firm has or wishes to achieve within its industry as
measured against its competition.
Conglomerate Diversification: A strategy of growing a firm by acquiring other firms for investment
purposes; usually little or no anticipated synergy with the acquired firm.
Consortium: Consortium is a combination of several companies working together for a particular

purpose, for example in order to buy something or build something.
Consumer Markets: Consumer markets are the markets for products and services bought by
individuals for their own or family use.
Corporate Culture: Corporate Culture refers to a company's values, beliefs, business principles,
traditions, ways of operating, and internal work environment.
Cross-Selling: Using a customer’s buying history to select them for related offers. For example:
Selling a car alarm and music systems to new car buyers.
Customer Demand: Consumer demand is a want for a specific product supported by an ability and
willingness to pay for it.
Customer Loyalty: Feeling or attitude that inclined a customer either to return to a company, shop
or outlet to purchase there again, or else to re-purchase a particular product, service or brand.
Customer Need: A need is a basic requirement that an individual wishes to satisfy.
Customer Satisfaction: The provision of goods or services which fulfil the customer’s expectations in
terms of quality and service, in relation to price paid.
Customer Wants: A want is a desire for a specific product or service to satisfy the underlying need.
Differentiation: A marketing strategy aimed at ensuring that products and services have a unique
element to allow them to stand out from the rest.
Direct Marketing: When businesses and non-profit organizations market their products, services or
causes directly to consumers based on consumer interests. Examples include catalogues and other

postal mailings, telemarketing, text messages, emails, ads on a mobile device and internet
advertising.
Distribution Channel: The network of organisations necessary to distribute goods or services from
the manufacturers to the consumers; the distribution channel therefore potentially consists of
manufacturers, distributors, wholesalers, retailers and E-tailers.
Diversify: A company, increases the range of goods or services it produces and sells.
E-Commerce: The use of technologies such as the Internet, electronic data exchange and industry
extranets to streamline business transactions.
Economy of Scale: A reduction in costs through larger operating units, spreading fixed costs over
large numbers of items/units.
External Environment: The conditions and forces that define a firm’s competitive position and
influences its strategic options. Also, called Competitive Environment.
Fast-Moving Consumer Goods (FMCG): Fast-moving consumer goods are those that sell in high
volumes, with low unit value, and have fast consumer repurchase. Examples include, soaps,
toothpastes, hair oils, jams, ketchups, packed juices, ready meals, baked beans, etc.
Forecasting: The process of estimating future demands by anticipating what buyers are likely to do
under a given set of marketing conditions. For example: Economic confidence, disposal income,
pricing levels, etc.
Innovators: Innovators are those who adopt new products first. They are usually relatively young,
lively, intelligent, socially and geographically mobile. They are often of a high socioeconomic group.
Internal Marketing: The process of eliciting support for a company and its activities among its own
employees, in order to encourage them to promote its goals. This process can happen at a number of
levels, from increasing awareness of individual products or marketing campaigns, to explaining overall
business strategy.
Joint Venture: A third party commercial operation established by two or more firms to pursue a
particular market, resource supply, or other business opportunity. It is created and operated for the
benefit of the co-owners.
Long-Term Objectives: A firm’s intended performance over a multi-year period of time; usually
includes measures such as competitive position profitability, return on investment, technology
leadership, productivity, employee relations and development, public responsibility.
Market Development: The process of growing sales by offering existing products (or new versions of
them) to new customer groups.
Market Entry: The launch of a new product into a new or existing market. A different strategy is
required depending on whether the product is an early or late entrant to the market; the first entrant
usually has an automatic advantage, while later entrants need to demonstrate that their products are
better, cheaper and so on.
Market Leader: The company that has control over a certain market.

Market Positioning: A marketing strategy that will position a business’ products and services against
those of its competitors in the minds of consumers.
Market Research: The systematic gathering, recording and analysing of data about problems relating
to the marketing of goods and services.
Market Segmentation: Dividing consumers into groups based on different consumer characteristics,
to deliver specially designed advertisements that meet these characteristics as closely as possible.
Market Share: Market share can be defined as the percentage of all sales within a market that is held
by one brand / product or company.
Market Targeting: Market targeting is the process of evaluating each market segment and selecting
the most attractive segments to enter with a particular product or product line.
Marketing: Marketing is the science and art of exploring, creating and delivering value to satisfy the
needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It defines,
measures and quantifies the size of the identified market and the profit potential. It pinpoints which
segments the company is capable of serving best and it designs and promotes the appropriate
products and services.
Marketing Mix: It refers to the firm’s marketing elements. It is common to describe these elements
in terms of 4Ps of marketing, viz., Product, Price, Place and Promotion. For services marketing usually
three additional Ps are referred to, viz, People, Processes and Physical Evidence.
Marketing Plan: A detailed statement (usually prepared annually) of how a company’s marketing mix
will be used to achieve its market objectives. A plan is usually prepared following a marketing audit.
Mass Marketing: When many consumers receive the same message from businesses and non-profit
organizations through mass media, such as broadcast television, radio and newspapers, regardless of
consumer interests.
Merger: Merger is considered to be a process when two or more companies come together to expand
their business operations.
Mission: The unique purpose of a firm that sets it apart from firms of its type; identifies scope of
operations including markets, customers, products, distribution, technology, etc. in manner that
reflects values and priorities of the firm’s strategies.
Niche Marketing: Niche marketing refers to the exploitation of comparatively small market segments
by businesses that decide to concentrate their efforts. Niche segments exist in nearly all markets. For
example: atta noodles for health conscious.
Opportunities: Opportunities are any feature of the external environment which creates conditions
that a business can exploit to its advantage. If the business is successful in exploiting opportunities,
then it will be better placed to achieve its objectives.
Personal Selling: Oral communication with potential buyers of a product with the intention of making
a sale. The personal selling may focus initially on developing a relationship with the potential buyer,
but will always ultimately end with an attempt to “close the sale”.

Pre-Emptive Pricing: Pre-emptive pricing is a strategy involves setting low prices in order to
discourage or deter potential new entrants to the suppliers market.
Price: The price of a product may be seen as a financial expression of the value of that product.
Price Discrimination: Price discrimination occurs when a firm charges a different price to different
groups of consumers for an identical good or service, for reasons not associated with costs. For
example, bottled water is priced differently in shopping malls and cinema halls.
Price Elasticity of Demand: Price elasticity of demand measures the responsiveness of a change in
demand for a product following a change in its own price.
Price Sensitivity: Price sensitivity is the effect a change in price will have on customers.
Price Skimming: Price skimming involves charging a relatively high price for a short time where a
new, innovative, or much-improved product is launched onto a market.
Publicity: Promotional activities designed to promote a business and its products by obtaining media
coverage not paid for by the business.
Sales Promotion: Sales promotion refers to any activity designed to boost the sales of a product or
service. It may include an advertising campaign, increased PR activity, a free-sample campaign,
arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary
price reductions, door-to-door calling, telephone-selling, personal letters on other methods.
Short-Term Objectives: Usually one year objectives sometimes known as Annual Objectives. They
often coincide with Long-Term Objectives; they usually indicate the speed at which management
wants the organization to progress.
Stakeholder: A person, group, or business that has an interest in the outcomes of a firm’s
operations.
Strength: A skill, resource, or other advantage that a firm has relative to its competitors that is
important to serving the needs of customers in its marketplace.
Target Marketing: Reaching out to a group of consumers sharing common consumer characteristics
with the most appropriate advertisements.
Telemarketing: Using the telephone to contact individuals about an advertiser’s products or

services, or to get support for a cause.
Test Marketing: Test marketing occurs when a new product is tested with a sample of customers, or
launched in a restricted geographical area, to judge customers’ reactions.
Threats: Threats are any aspect of the external environment which cause problems and which may
prevent achievement of objectives. Almost by definition, what presents a threat to one business offers
an opportunity to other businesses.
Unique Selling Proposition (USP): A unique selling proposition is a customer benefit that no other
product can claim.

Weakness: A limitation or lack of skills, resources, or capabilities that impedes a firm’s effective
performance.
BANKINGING TERMINOLOGY
Acceptance: Acceptance which is also known as the banker’s acceptance is a signed instrument of
acknowledgment that indicates the approval and acceptance of all terms and conditions of any
agreement on behalf of the banker. It is a very wide term that is used in context with financial
agreements and contracts.
Accepting House: An accepting house is a banking or finance organization that specializes in the
service of acceptance and guarantee of bills of exchange. This organization specializes in two
prominent functions, that is facilitating the different negotiable instruments and merchant banking.
Account Balance: The total amount of money in a particular bank account, along with the debit and
credit amounts, the net amount is also termed as the account balance.
Accrued Interest: Accrued Interest is the interest, accumulated on an investment but is not yet paid.
Often, accrued interest is also termed as interest receivable. Some banking books prefer to call it as
the interest that is earned, but not yet paid.
Administered Rates: Administered rates are the rates of interest which can be changed contractually
by lender. In some cases, these rates can also be changed by the depositor and also the payee. The
laws and provisions that monitor the concept of administered rates differ in each jurisdiction.
American Depository Receipt (ADR): American depository receipts, also known as ADRs, are
depository receipts which are equal to a specific number of shares of company that have been issued
in a foreign country. American depository receipts are traded only in the United States of America.
Similar mechanism exists for other countries also.
Annuities: Annuities are contracts that guarantee income or return, in exchange of a huge sum of
money that is deposited, either at the same time or is paid with the help of periodic payments. Some
of the common types of annuities include the deferred, fixed, immediate or variable variants.
Automated Clearing House: An automated clearing house is nation-wide electronic clearing houses
that monitors and administers the process of check and fund clearance between banks. It is an
electronic system and thus minimizes the human work in the process of clearance. It distributes credit
and debit balances automatically.
Automated Teller Machines: Automated teller machines are basically used to conduct transactions
with the bank, electronically. The automated teller machine is an excellent example of integration of
computers and electronics into the field of banking.
Balance Transfer: A balance transfer is the repayment of a credit debt with the help of another
source of credit. In some cases, balance transfer also refers to transfer of funds from one account to
another.
Bank Account: A bank account is an account held by a person with a bank, with the help of which
the account holder can deposit, safeguard his money, earn interest and also make cheque payments.

Bank Rate: It is the interest rate at which the Central Bank in the discharge of its function as
Banker’s Bank lends to the commercial banks. Since this lending may be in the form of discounting of
the securities pledged, it is also called the discount rate.
Basis Point: It is a measure of change in financial parameters such as interest, stock indices and
market rates. It is 1/100 of one percent.
Bounced Cheque: A bounced cheque is nothing but an ordinary bank cheque that any bank can refuse
to encash or pay because of the fact that there are no sufficient finances in the bank account of the
originator or drawer of the cheque or some other valid reason.
Bridge Financing: Also, known as gap financing, bridge financing is a loan where the time and cash
flow between a short term loan and a long term loan is filled up. Bridge financing begins at the end
of the time period of the first loan and ends with the start of the time period of the second loan,
thereby bridging the gap between two loans. It is also known as gap financing.
Cap: A cap is a limit that regulates the increase or decrease in the rate of interest and installments of
an adjustable-rate mortgage.
Cashier’s Cheque: The cashier’s cheque is drawn by a bank on its own name to may payments other
organizations, banks, corporations or even individuals.
Cash Reserve: The cash reserve is the total amount of cash that is present in the bank account and
can also be withdrawn immediately.
Certificate of Deposit: The certificate of deposit is a certificate of savings deposit that promises the
depositor the sum back along with appropriate interest.
Cheque: A cheque is a negotiable instrument that instructs the bank to pay a particular amount of
money from the writer’s bank, to the receiver of the cheque.
Clearing: Clearing of a cheque is basically a function that is executed at the clearing house, when all
amount of the cheque is subtracted from the payer’s account and then added to the payee’s
account.
Clearing House: The clearing house is a place where the representatives of the different banks meet
for confirming and clearing all the checks and balances with each other. The clearing house, in most
countries across the world, is managed by the central bank.
Compound Interest: Compound interest is the interest that is ‘compounded’ on a sum of money
that is deposited. The compound interest, unlike simple interest, is calculated by taking into
consideration, the principal amount and the accumulated interest.
Debit Card: A debit card is an instrument that was developed with digital cash technology, and is
used when a consumer makes that payment first to the credit card company and then swipes the
card. The debit card operates in the exact opposite manner of the credit card.
Deposit Slip: A deposit slip is a bill of itemized nature and depicts the amount of paper money, coins
and the check numbers that are being deposited into a bank account.
Depositor: The person who deposits money into a bank account is called a depositor.

Debt Settlement: Debt settlement is a procedure wherein a person in debt negotiates the price with
the lender of a loan, in order to reduce the installments and the rate of repayment and ensure a fast
and guaranteed repayment.
Debt Repayment: Debt repayment is the total process repayment of a debt along with the interest.
Sometimes, the consolidation that is provided is also included in debt repayment.
Debt Recovery: Debt recovery is the process that is initiated by the banks and lending institutions,
by various procedures like debt settlement or selling of collaterals.
E-Cash: It is also known as electronic cash and digital cash. E-cash is a technology where the banking
organizations resort to the use of electronic, computer, internet and other networks to execute
transactions and transfer funds.
Early Withdrawal Penalty: An early withdrawal penalty is basically a penalty that is levied by a bank
because of an early withdrawal of a fixed investment by any investor. There can be several types of
early withdrawal penalties, like forfeiting the promised interest.
Earnest Money Deposit: An earnest money deposit is made by the buyer to the potential seller of a
real estate, in the initial stages of negotiation of purchase.
Expiration Date: This term indicates the invalidity of a financial document or instrument, after a
specified period of time.
Education Loan: An education loan, also known as student’s loan, is specifically meant to provide
forth borrower’s expenditure towards education. In the majority of countries, educational loans
tend to have a low rate of interest. The period of repayment also starts after the completion period
of the loan.
Guarantor: A guarantor is a creator of trust who takes the responsibility of the repayment of a loan,
and is also, in some cases, liable and equally responsible for the repayment of the loan.
Installment Contract: An installment contract is a contract where the borrower, who is also the
purchaser, pays a series of installments that includes the interest of the principal amount.
Interest / Interest Rate: Interest is a charge that is paid by any borrower or debtor for the use of
money, which is calculated on the basis of the rate of interest, time period of the debt and the principal
amount that was borrowed. Interest is, sometimes, also titled as the ‘cost of credit’. Interest rate is
the percentage of principal amount that is paid as an interest for the use of money.
Internet Banking: Internet banking is a system wherein customers can conduct their transactions
through the Internet. This kind of banking is also known as e-banking or online banking.
Letter of Credit: A document issued by a bank (on behalf of the buyer or the importer), stating its
commitment to pay a third party (seller or the exporter), a specific amount, for the purchase of goods
by its customer, who is the buyer. The seller has to meet the conditions given in the document and
submit the relevant documents, in order to receive the payment. Letters of credit are mainly used in
international trade transactions of huge amounts, wherein the customer and the supplier live in
different countries.
Lock-in Period: A guarantee given by the lender that there will be no change in the quoted mortgage
rates for a specified period of time, which is called the lock-in period.

Mortgage: A mortgage is a legal agreement between the lender and the borrower where real estate
property is used as collateral for the loan, in order to secure the payment of the debt. According to
the mortgage agreement, the lender of the loan is authorized to confiscate the property, the moment
the borrower stops paying the installments.
Maturity: The term maturity is used to indicate the end of investment period of any fixed investment
or security. After maturity, the investor is repaid the invested amount along with the interest that has
been accumulated. For example, on the maturity of a one year fixed deposit, the invested sum along
with the accumulated interest, is transferred by the bank to the account of the investor.
Market Value: Market value is the value at which the demand of consumers and the supply of the
manufacturers decide the price of a commodity or service. The market value is the equilibrium point
on the supply and demand graph, where the demand and supply curves meet. Thus, market value is
decided on the basis of the number people who demand a commodity and the number of
commodities that the sellers are capable of selling.
Online Banking: The accessing of bank information, accounts and transactions with the help of a
computer through the financial institution’s website on the Internet is called online banking. It is also
called Internet banking or e-banking.
Overdraft: It is a check or rather an amount of check, which is above the balance available in the
account of the payer.
Payee: Payee is the person to whom the money is to be paid by the payer.
Payer: Payer is the person who pays the money to the payee.
Personal Identification Number (PIN): Personal identification number or PIN is a secret code of
numbers and alphabets given to customers to perform transactions through an automatic teller
machine or an ATM.
Repo Rate. The rate at which banks borrow money from the RBI against pledging or sale of
government securities to RBI is known as “Repo Rate.” Repo rate is short form of Repurchase Rate.
Generally, these loans are for short durations up to 2 weeks. Repo Rate differs from Bank Rate with
respect to the time horizon. Repo Rate is a short-term measure and it refers to short-term loans. On
the other hand, Bank Rate is a long term measure and is governed by the long-term monetary policies
of the RBI.
Reverse Repo Rate. It is the rate of interest offered by RBI, when banks deposit their surplus funds
with the RBI for short periods.
Smart Cards: Unlike debit and credit cards (with magnetic stripes), smart cards possess a computer
chip, which is used for data storage, processing and identification.
Syndicated Loan: A very large loan extended by a group of small banks to a single borrower, especially
corporate borrowers. In most cases of syndicated loans, there will be a lead bank, which provides a
part of the loan and syndicates the balance amount to other banks.
Time Deposit: A kind of bank deposit which the investor is not able to withdraw, before a time fixed
when making the deposit.

Value At Risk (VAR): The sum or portion of the value that is at stake of subject to loss from a variation
in prevalent interest rates.
Wholesale Banking: Wholesale banking is a term used for banks which offer services to other
corporate entities, large institutions and other financial institutions.
Zero Balance Account: A bank account which does not require any minimum balance is termed as a
zero balance account.
Zero-Down-Payment Mortgage: Zero-down-payment mortgage is a type of mortgage given to a buyer

who does not make any down payments while borrowing. The mortgage buyer borrows the amount
at the entire purchase price. For example, Jan Dhan Account.
OTHER BUSINESS TERMINOLOGY

Acquisition: When one organization takes over the other organization and controls all its business
operations, it is known as acquisitions. In this process of acquisition, one financially strong
organization overpowers the weaker one.
Bankruptcy: A bankruptcy refers to economic insolvency, wherein the person’s assets are liquidated,
to pay off all liabilities with the help of a bankruptcy trustee or a court of law.
Bottom-Line: In plain English bottom line means the most important fact or aspect of anything. In
BCK, it may be defined as the firm’s income after all expenses have been deducted from revenues.
These expenses include interest charges paid on loans, general and administrative costs and income
taxes. In simpler words, it is the same thing as Net Profits for these mattered the most for the
owners of the firm. In today’s context, a firm’s performance is evaluated not on the basis of such an
economic performance as net profits alone but also on the basis of contribution to the communities
and the conservation of the environment. See, Triple Bottom Line.
Business Environment: It is a set of all the variables external to the firm but influence its decision-
making and in turn are also influenced by it.
Business Facilitators: These are individuals, organisations/ institutions and all other arrangements
that ease the setting up of, operating and exiting from business.
Corporate Forms of Business Organisation: These are the forms of business organisation where in
the eyes of law the business entity is distinct from its owners. It can own the assets and owe to
others as an artificial legal person. Thus, the liability of business owners can be limited to a
predetermined amount. Company is the ideal representation of the corporate forms of business
organisation.
Corporate Governance: It is a system of overseeing the affairs of a corporation to ensure that they
are conducted in an ethical manner and as per provisions of law. The mechanism of corporate
governance includes (a) the board of directors who appoint, oversee and reward the management
team; (b) independent audit of the accounts of the company; (c) reporting of the performance to the
markets (stock exchanges) and business media. All these are examples of the system of corporate
governance.
Electronic Commerce: It broadly refers to the Internet and mobile telephony based applications for
conducting business and commerce. The latter more precisely is known as mobile commerce. It
includes not only such pure e-commerce businesses as Amazon but also includes such business

functions as E-marketing, Internet Marketing, etc. Usually a typical e-commerce retailing will have an
order placement, tracking and delivery end as well as on-line payment end.
Electronic Filing: Electronic filing is system of filing information required by regulators, government
and others electronically. In taxation, it is a method of filing of tax returns and tax forms on the
Internet.
Globalisation: It is a systematic process of removing the barriers to international trade in goods and
services and the international flows of capital. Some people argue that it should include barrier free
movement of labour as well. Collectively all this results in the greater integration of a country’s
economy with the economy of the Rest of the World.
Goodwill: Goodwill in accounting is the difference between what a company pays when it buys the
assets of another company and the book value of those assets. Sometimes, real goodwill is a
company’s good reputation, the loyalty of its customers, and so on.
Infrastructure: It means the basic facilities e.g. buildings, roads, power supplies needed for the
operation of a society or enterprise. For example, the firm infrastructure would comprise its
factories, offices, warehouses etc.
Joint Products and By-Products: Joint products represent “two or more products separated in the
course of the same processing operation, usually requiring further processing each product being in
such proportion that no single product can be designed as a major product”. For example: In the oil
industry, gasoline, fuel oil lubricants, paraffin, coal tar, asphalt and kerosene are all produced from
crude petroleum. By-products are defined as “products recovered from material discarded in a main
process, or from the production of some major products.
Logistics: It is a commercial activity implying moving of supplies to the production facilities and goods
and services to their respective markets. Inbound logistics imply the movement of inputs and the
outbound logistics means the movement of outputs.
Mission: A company’s Mission statement is typically focused on its present business scope – “who we
are and what we do”; mission statements broadly describe an organizations present capabilities,
customer focus, activities, and business makeup.
Term Insurance: It is the insurance for a certain time period which provides for no defrayal to the
insured individual, excluding losses during the period, and that becomes null upon its expiration.
Triple Bottom Line (TBL): The emphasis is on these triple Ps, viz., Profits, People and Planet is known
as the TBL. This idea at the macro level corresponds to the more evolved notion of the development
of a country’s economy, society and ecology. See sustainable development.
Turnaround: A turnaround is the financial recovery of a company that has been performing poorly for
an extended time. To affect a turnaround, a company must acknowledge and identify its problems,
consider changes in management, and develop and implement a problem-solving strategy.

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INDIGOLEARN

CA-Foundation - Business and Commercial Knowledge

Introduction to Business & BCK 3

Government Policies for Business Growth 78

Organisation Facilitating Business 85

Common Business Terminologies 94

Business & Commercial Knowledge www.Indigolearn.com PAGE 2

Economic & Non Economic Activity

Distinguishing Characteristics of Economic Activities

Business & Commercial Knowledge www.Indigolearn.com PAGE 3

Business-Meaning & Definition

Characteristics of Business in relation to Economic Occupations

A distinctive characteristic of business in relation to occupation is that any person, irrespective of

Brief description of two occupations are given below:-

Business & Commercial Knowledge www.Indigolearn.com PAGE 4

Major differences between Business, Profession & Employment

Business Profession Employment

Distinguishing Characteristics of a Business

(1) Business creates jobs: -

(2) Provides momentum to economic growth: -

(3) Investment Intensive: -

Business & Commercial Knowledge www.Indigolearn.com PAGE 5

(4) Gestation & uncertainties: -

(5) Systematic, organized, efficiency oriented activity:-

(6) Objective oriented/Purposeful: -

Different types of objectives of a business are as follows:-

➢ Economic objective and motive of any business is to earn profit, income,

Business & Commercial Knowledge www.Indigolearn.com PAGE 6

• Sole Proprietorship Business :-

• Hindu Undivided Family( HUF) Business :-

Business & Commercial Knowledge www.Indigolearn.com PAGE 7

• Business in the form of a Company

Different types of Companies and their essential features are as follows:-

Public Company Private Company One Person Company

Can be listed on a stock Cannot be listed on a Cannot be listed on a

Business & Commercial Knowledge www.Indigolearn.com PAGE 8

A business is an enterprise that provides products or services desired by customers.

(i) Ability of a business to grow and prosper,

Meaning of Business Environment

- The success of any business highly depends on business environment.

(i) Complex Environment: -

Business & Commercial Knowledge www.Indigolearn.com PAGE 9

(i) Identifying Opportunities for & Threats to the business.

Relationship between Organisation and its Environment

Major relationships are outlined below:-

(i) Exchange of Information:-

Organisation’s response to its Environment

(i) Administrative response:-

Business & Commercial Knowledge www.Indigolearn.com PAGE 10

Environmental Influence on Business.

-Following are frameworks to understand the environmental influences

• Analysis of the nature of environment

Utility of Environmental Analysis

It helps in identifying opportunities and responding to them positively. It also assists in

Purpose of Environmental Analysis

• Analyzing changes and responding actively towards them.

Environmental scanning can be defined as the process by which organisations monitor

Factors to be considered for environmental scanning are:-

Events: - Events are certain happenings in organization’s environment.

Business & Commercial Knowledge www.Indigolearn.com PAGE 11

Issues: - Issues are concerns arising in response to events & trends

Expectations: - Expectations are demands towards a particular concern

Components of Business Environment