INTERNATIONAL JOURNAL OF COMMERCE (A Peer-Reviewed-Refereed/Scholarly Quarterly Journal Globally Indexed with Impact Factor)

Vol. 6 Special Issue 1 March, 2018 Impact Factor: 3.017 ISSN: 2320-4168 UGC Approval No: 44120

National Conference on “CHANGING GLOBAL ECONOMIC SCENARIO IN COMMERCE - OPPORTUNITIES AND CHALLENGES”

3rd MARCH 2018 (Saturday)

Organised by PG AND RESEARCH DEPARTMENT OF COMMERCE

SRIMATH SIVAGNANA BALAYA SWAMIGAL TAMIL, ARTS AND SCIENCE COLLEGE (Affiliated to University) Accredited by NAAC Mailam - 604 304

EDITORIAL BOARD MEMBERS

Chief Editor Dr. M. Rajarajan, M.Com., MBA., M.Phil., B.Ed., BLL., Ph.D., Assistant Professor, Department of Commerce, Annamalai University, Annamalai Nagar - 608 002

Co-Chief Editors Dr. S. Vijayakanthi Principal Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Dr. S. Thirunavukarasu Vice Principal SrimathSivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Dr. C. Kandasamy, M.Com., MBA., M.Phil., Ph.D., Professor of Management Studies Sree Dattha Group of Institutions Ibrahim Patnanu Hyderabad - 501 510

Dr. K. Thamizhselvan, M.Com., MBA., M.Phil., Ph.D., Assistant Professor Department of Commerce Annamalai University, Annamalai Nagar - 608 002

Mr. S. Sambath, M.Com., M.Phil., SET., NET., Guest Faculty Department of Commerce Pondicherry University, Puducherry - 605 014

Associate Editor Dr. S. Anandarajan Assistant Professor and Head PG and Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Editors and Editorial Advisory Board Mr. P. Veeramuthu Assistant Professor of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Mr. M. Sabari Raj Assistant Professor of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Mrs. V. Sudha Assistant Professor of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Mrs. R. Amuthavalli Assistant Professor of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Miss. J. Rama Assistant Professor of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Dr. R. Agila Assistant Professor of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

Member Dr. P. Ramkumar Librarian Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College Mailam - 604 304

CHIEF PATRON’S MESSAGE

It’s my immense pleasure to give valedictory address by the quotes of Hyacil Han.

“The most Successful people started from nothing…. they didn’t wait for the opportunity to knock but created the opportunity on their own, worked hard and made history”.

I am Glad to Shower my blessings of Lord Muruga and Aadhi Kadavul Balasidhar on each one of the Participators for this 1st National Level Conference on “Changing Global Economic Scenario in Commerce – Opportunities and Challenges”.

I congratulate all the Commerce Department Faculties, Research Scholars and Students taken Shanlax International Journal of Commerce to such enormous repute and I am hopeful with the efforts, there are enormous more milestones waiting to be achieved in near future.

Sri Sivagnana Balaya Swamigal Chairman Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam

SECRETARY’S MESSAGE

“Today it was Commerce that Europe valued and it was the business man who, having exploited what the Scientists and technologists had done for the world, now reaped the rewards”

First National Level Conference deliberated by the Department of Commerce of our college assumes utmost significance in the present context “Changing Global Economic Scenario in Commerce – Opportunities and Challenges” prioritized by almost all the sectors of the economy. The threadbare analysis attempted by the participants in this conference will definitely go a long way to help the green bank to chalk out programmes for improving their operational efficiency.

Let this conference be a grand success and be followed by a number of conferences of this kind in the days to come!

Sivaththiru. Rajiv Kumar Rajendran Secretary Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam

CONTENTS

S.No. Title Page No. 1 Impact of Goods and Services Tax (GST) on Economy with Special 1 Reference to and Allied Sectors Dr. M. Rajarajan & Dr. M. Vetrivel 2 Financial Empowerment of Women through Financial Literacy 6 – An Empirical Study Dr. A. G. Vijayanarayanan & V. Sathish Kumar 3 Insurance Sector Reforms in 11 Dr. K. Thamizhselvan & Dr. C. Kandasamy 4 A Study on Factors Affecting Employee Retention with Special Reference to 15 Sharadaa Ceramics Private Limited in M. Sabariraj & V.Suganthi 5 The Manager’s Role in Strategic Human Resource Management 24 Dr. S. Anandarajan & T. Amudhamangaiyarkkarasi 6 The Effect of Company Characteristics on Capital Structure in India 29 P. Veeramuthu & R. Vinoth 7 Brand Trust – Its Impact on Customer Satisfaction of Television with 35 Reference to Consumer of Chennai S. Lakshmi 8 Structural Change in the Environment Due to Impact of Tannery Effluent 39 Disposal with Special Reference to Taluk, District, Tamil Nadu M. Nirmalkumar & Dr. T. Balasaravanan 9 Exploring of Effective Communication: Social Perspectives 47 T. Sivakumar & A. Kanimozhi 10 Impact of Agriculture on Indian Economy 53 Dr. V. Ukkaravel & Dr. M. Vetrivel 11 Financial Engineering in Banks – Digital India, Striving for Service Excellence 58 P. Manimozhi & Dr. T. Saroja 12 Consumer’s Problems and its Protection Act 67 Dr. S. Anandarajan & P. Gowthami 13 An Overview: Swot Analysis on Goods and Service Taxes 74 P. Priscilla & C. Manikandan 14 A Study on Stress Management towards Chengalrayan Co-Op Sugar Mill 77 Society Ltd, Periyasevalai M. Sabariraj & S. Birundhavathi 15 A Study on Effectiveness of Recruitment and Selection Process, SPI 85 Technologies, Puducherry Dr. M. Veeramuthu 16 E-Commerce and Over View 93 J. Kalai Selvi 17 The Impact of Firm Size on Dividend Behaviour of Corporate Firms in India 98 P. Veeramuthu & S. Kannan 18 A Study on Employee Satisfaction of Welfare Measure in 107 Fabrication Units in Puducherry Dr. B. Manivannan & S.Manju 19 The Communication is Placed as Pivotal Role on the Professional: Scenario 113 K.R. Rajavel & J.Mangalakshmi 20 is Emerged as Prominent Factor on National-Economic Growth 117 V. Vedhachalam & E. Deepa 21 Comprehensive Coverage of Effective Communication in Modern Era 120 A. Kanimozhi & T. Sivakumar 22 Importance of Communication in Business in the Present Scenario 124 E. Deepa & V. Vedhachalam 23 Problems Faced by Female Students among Cosmetic Products 128 Dr. M. Rajarajan & G. Birundha 24 Tron Culture 134 E. Thambiraja & J. Hari Narayanan 25 Farmers’ Perception and Awareness towards Crop Insurance in Villupuram 141 District R. Rajeswari 26 Studies on the Empirical an Organizational Climate of the Select Sugar Mills 145 in Tamilnadu R. Chitra & D. Rajakumari 27 A Study on Measuring of Financial Performance of Selected Public Sector 149 Banks in India – Camel Analysis K. Premalatha & Dr. D. Ganesan 28 E- 155 M. Ragini 29 Problems of GST on Rural Marketing in Villupuram 161 Dr. R. Anandaraman 30 Employees Motivation in an Organization 167 Dr. R. Agila & B. Arun 31 A Study on Employee Motivation in Bright Brothers Pvt Ltd at Puducherry 173 R. Kumuthavalli Revathy 32 Food Problems and Foodgrain Production Policies in India 183 Dr. T. Sivakumar 33 Investment Behaviour of Retail Investors: A Study with Special Reference to 190 Mutual Funds in Puducherry S. Jegan 34 Problem Challenges Faced by Women Entrepreneurs 197 Dr. R. Agila, E. Thulasi & D. Rajasekar 35 Demonetization: A Move towards Digital Transaction 201 T. Velayutham & S. Sairam 36 India’s Trade with Saarc and Asean: A Comparative Analysis 206 S. Saravanan & Dr. V. Vijayakumar 37 Demonetization and its Impacts on Indian Economy 212 K. Sulochana & Dr. D. Ganesan 38 A Survey about Banking Applications After Demonetization 219 K. Kulunthan & D. Gopinath 39 Data Mining Services in Retail E-Commerce Data 223 C. Anuradha & R. Anandavally 40 Corporate Social Responsibility-Survey in India 229 V. Deepasundari & V. Harini

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IMPACT OF GOODS AND SERVICES TAX (GST) ON TAMIL NADU ECONOMY WITH SPECIAL REFERENCE TO AGRICULTURE AND ALLIED SECTORS

Dr. M. Rajarajan Assistant Professor, Department of Commerce Annamalai University, Annamalai Nagar

Dr. M. Vetrivel Assistant Professor, PG& Research Department of Commerce Sri Vinayaga College of Arts and Science, Ulundurpet

Abstract Goods and Services Tax (GST) is an indirect tax which was passed on 3 august 2016 and commenced on 1 July 2017 in India. GST was already implemented in 160 countries. India adopted concurrent dual GST model where taxes are collected in the form of State Goods and service tax (SGST) and Central Goods and service tax (CGST). Tamil Nadu is one of the most socially and economically progressive states. In 2014-15, Tamil Nadu contribute to 8.4 per cent in GDP and services contribute to economic activity (45%), manufacturing (34%) and agriculture (21%). Agriculture is the backbone and root of Indian economy which helps to sustain industrial growth and key to reduce poverty. It accounted for 17.4 per cent of GDP. Implementation of GST would expect to satisfy both farmers and consumers by unifying the tax system and reducing the burden of tax and boost the economy of Tamil Nadu in long run. This paper helps to study the impact of GST on economy of Tamil Nadu with special reference to agriculture and allied sector. Keywords: GST, Agriculture, Tamil Nadu, Economy.

Introduction The Goods and Services Tax (GST) is an indirect tax which was passed on 3 august 2016 and commenced on 1 July 2017 in India. GST was introduced as The Constitution (One Hundred and First Amendment) Act 2017, following the passage of Constitution 122nd Amendment Bill. The GST council has approved the rates of taxes (5%, 12%, 18% and 28%) on goods and services in its 14th council meet held on May 18, 2017. GST was already implemented in 160 countries. India adopted a concurrent dual GST model where both states and centre will impose and collect tax in the form of State Goods and service tax (SGST) and Central Goods and service tax (CGST). It is unified, comprehensive, multi-stage, transparent, destination-based tax that will be levied on every value addition. Overall GST will be helpful for the development of Indian economy and this will also help in improving the Gross Domestic Products of the country more than two percent (Chaurasia et al. 2016). Tamil Nadu is one of the most socially and economically progressive state in the country. In 2014-15, Tamil Nadu has the second largest economy in India with GDP- 8.4 per cent. Services contributes to economic activity (45%), manufacturing (34%) and agriculture (21%). It rank second in , third in Per capita GDP and the fourth largest state of India. It is one of the three most preferred states for business investments and most

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” industrialized state in India. Tamil Nadu is only one of eight states that recorded poverty reduction at a rate higher than the all-India average. Agriculture is the backbone and root of Indian economy which helps to sustain industrial growth and key to reduce poverty. In 2015-2016, Agriculture and allied sectors accounted for 17.4 per cent of GDP, 48.9 per cent for total workforce and provides livelihood to more than 58 per cent of the total population. India ranks second in farm output, fourth in largest exported principal commodity and seventh in agricultural exports which shares forms an average around 15 per cent (both raw and processed form) which helps to increase the foreign exchange. Exports have become an important engine of India’s economic growth (Krueger, 2008). Implementation of GST would have a great impact on economy of Tamil Nadu especially in agriculture and allied sector. With this backdrop, a study was taken up to assess the impacts of GST on Tamil Nadu economy with special reference to agriculture and allied sectors.

Methodology The paper is solely based on secondary data. Relevant data were collected from internet, published articles, newsfeed and journals. Collected data was analyzed using tabular analysis and the results are presented below.

Results and Discussion The table 1 below clearly illustrates the different GST and VAT rates for various products in agriculture and allied sectors. Agriculture - As shown in Table 1 the tax rates for agricultural inputs like seeds, implements (manual and animal operated) and organic manure stand unchanged at 0 per cent. Whereas a vast change can be observed in the tax rates of other inputs like chemical fertilizers and pesticide and insecticide which has changed from 0 to 5 per cent and 0 to 18 per cent respectively. Likewise a hike from 5 to 12 per cent in the tax rates of tractors, power tillers and harvesters can be seen. Tax levied on tractor parts has changed from 5 to 18 per cent.

Table GST & VAT rate list of major agricultural commodities S.No. Name of the commodity GST (Percent) VAT (Percent) 1 Seeds and saplings 0 0 2 Agricultural implements 0 0 3 Live trees, plants & parts 0 0 4 Live animals, poultry & aquatic animals (except horse) 0 0 5 Fresh meat 0 0 6 Feeds of animal, poultry and aquatic animals 0 0 7 Jaggery 0 0 8 Cotton byproduct 0 0 9 Organic manure 0 0 10 Unprocessed & unbranded tea & 0 0 11 Cereal byproducts 0 0 12 Milk, curd, lassi & butter milk 0 0 13 Egg with shell & processed 0 0 14 Silkworm laying & cacoon 0 0 15 Fresh , & flowers 0 0 16 Lac & shellac 0 5 17 Unbranded cereals, pulses & oilseeds 0 5 18 Unbranded honey, panner 0 5 19 Frozen vegetables, fruits & flowers 0 0

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20 Oil from oilseeds 5 0 21 Egg with out shell & unprocessed 5 0 22 Silk yarn 5 0 23 Firewood 5 0 24 Animal wool, hair & semen 5 0 25 Instant tea & coffee 5 0 26 Tobacco leaves 5 0 27 Sugar-cane, beet & palmyrah 5 5 28 Dried plants, flowers & barks 5 5 29 All spices 5 5 30 Processed & branded tea & coffee 5 5 31 Resin, ester gum 5 5 32 Oil from vegetables 5 5 33 Branded cereals, pulses & oilseeds 5 5 34 Aquatic animals-frozen & processed 5 5 35 UHT milk 5 5 36 Branded honey, panner 5 5 37 Cocoa bean 5 5 38 Tractors, power tiller & harvester 12 5 39 Processed meat 12 5 40 Cheese 12 5 41 Beverages- fruits 12 5 42 Butter 12 0 43 Dry fruits & nuts12 12 14.5 44 Pesticide, insecticide 18 0 45 Parts of tractor 18 5 46 Essential oil 18 5 47 Condensed milk 18 5 48 Timber 18 14.5 49 Molasses 28 30 Source: Reference on Goods and Services Tax, ICSI Agricultural products like live tree, plants, unprocessed and unbranded tea, coffee, fresh vegetables, fruits, flowers, jiggery and byproducts of cereals, cotton are exempted from tax as earlier. The table also depicts certain agricultural products sans alteration like all spices, ester, resin gum, dried flowers, fruits, barks, cocoa bean and also processed and branded cereals, pulses, oilseeds, tea, coffee, vegetables and honey. It also highlights a depreciation of 5 per cent in the tax rates of commodities lac, shellac, firewood, sugarcane, beet, tobacco leaves, Palmyra and processed and unbranded cereals, pulses, oilseeds, honey, coffee, tea and lastly frozen fruits and vegetables. Tax rate of 12 per cent imposed on beverages and dry fruits and nuts. Lastly a change from 5 to 18 per cent, 14.5 to 18 per cent and 30 to 28 per cent can be seen in the tax impose on essential oils, timber and molasses. Allied sectors - Under this sector, fresh animals (except horse), their feeds and meat also their byproducts like milk, curd, lassi, butter milk, egg with shell and processed and silkworm laying and cacoon are exempted as earlier. Tax levied on products like UHT (Ultra High Temperature) milk, branded panner, and Aquatic animals which was frozen and processed are unchanged as 5 per cent. Whereas 12 per cent tax charged on butter, cheese, and processed meat can be observed. Increment of 5 per cent tax rate can be seen in byproducts such as panner, silk yarn, wool, animal hair, semen and egg without shell and unprocessed. Lastly we can notice a high increment in the tax rate of condensed milk from 5 to 18 per cent.

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Table Sector wise Tax rate & GST Source: Reference on Goods and Services Tax, ICSI Name of Current tax rate New GST rate The from the above Table 1.2 we S.No sectors (Per cent) (Per cent) can study the difference between 1 Automobiles 30-47 20-22 current tax rate and GST in various 2 Banking & 15 18 sectors. A plunge of approximately Financial service 50% or so can be seen in the tax 3 Cement 27-32 18 rates of automobile, cement and 4 Entertainment 20-21 18 FMCG. Whereas a meager dip is 5 FMCG 20-35 18 observed in the tax rates of real 6 Insurance 14 18 7 IT 15 18 estate sector. Tax rate of 12% on 8 Logistics 15 20 pharmaceutical and 18% each on 9 Metal 19-21 18 metal and entertainment has been 10 Pharmaceuticals 12-14 12 imposed. At the same time service 11 Real estate 15 12 sectors such as banking, IT and 12 Telecom 15 18 telecom faced a hike from 15% to 13 Textiles/Garments 6-7 18 18% in the tax rates. A rise of 4% to 5% is depicted from the above table in insurance and logistics sector respectively. The most affected among all the sectors is the textile/garment sector where a jump as high as 18% from a measly 6% can be seen. We can summarize that implementation of GST will give positive impacts on sectors like automobiles, entertainment, FMCG, cement, real estate also slightly positive impact on metal can be seen. It was observed that GST will expect to remain neutral for pharmaceutical sector. Increment in the effective tax rate will show negative impact on textiles, telecom, logistics, Insurance, banking & financial service sectors and slightly negative impact on IT sector.

Conclusion From the above we analyzed the impact of GST and the revised tax rates levied on various sector with special reference to agriculture and allied sectors. It helps the farmers by making movement of commodities hassle free, increasing the marketing efficiency by establishing integrated market system (e-NAM) and reducing the burden of tax on consumer goods. At the same time both positive and negative impacts can be seen on other sectors of Tamil Nadu economy as well. We can conclude by saying that a positive and constructive outcome can be expected from the implementation of GST. It can potentially boost the Tamil Nadu economy by eliminating the lacunae prevailing in the economy.

References 1. Alpna Yadav (2017), ”Impact of Goods and Services Tax on Indian Economy”, “SSRG International Journal of Economics and Management Studies”, vol:4, issue7 July 2017 2. Krueger, Anne O. (2008): “The Role of Trade and International Policy in Indian Economic Performance”, Asian Economic Policy Review, (3), Japan Center for Economic Research 3. Milandeep Kour, Kajal Chaudhary, Surjan Singh, Baljinder Kaur (2016), “A study on impact of gst after its implementation”, “International Journal of Innovative Studies in Sociology and Humanities”, Vol.1, Issue: 2, November 2016

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4. Chaurasia, S. Singh, P. Kumar Sen (2016), “ Role of Goods and Service Tax in the growth of Indian economy”, “ International journal of science technology and management”, 5 (2), February 2016. 5. Dani S (2016) A Research Paper on an Impact of Goods and Service Tax (GST) on Indian Economy. Bus Eco J 7: 264. doi: 10.4172/2151-6219.1000264. 6. IMoT Forum - Impact of Goods and Services Tax (GST) in Agriculture Sector - https://cleartax.in/s/impact-of-gst-on- agricultural-sector 7. GST may lead to price increase in agri-inputs: ICFA survey http://www.businesstoday.in/current/economy-politics/gst-may- lead-to-price-increase-in- agri inputs-icfa- survey/story/256027.html 8. https://gst.caknowledge.in/gst-model-india/ 9. https://buysellunlistedshares.com/2016/08/03/%E2%80%8Bgst-impact-on-sectors companies-in-a-nutshell/

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FINANCIAL EMPOWERMENT OF WOMEN THROUGH FINANCIAL LITERACY – AN EMPIRICAL STUDY

Dr. A. G. Vijayanarayanan Associate Professor, Department of Commerce Vels Institute of Science, Technology and Advanced Studies, (Deemed to be University)

V. Sathish Kumar Research Scholar, Department of Commerce, Guru Nanak College

Abstract Women empowerment has been a buzzword of the modern world and they are empowered socially, politically, educationally and financially. This study explores the awareness and practice level of women through financial literacy. The paper is empirical in nature and examines the opinion about awareness and practice level of different financial investment avenues. The study also examines the sources of information through which the women respondents are aware about the financial instruments. Data was collected from eighty-two women respondents through structured questionnaire within Chennai city. Keywords: Financial literacy, financial investment avenues, awareness and practice level, financial empowerment

Introduction One of the biggest Challenges for our nation is women empowerment which is achievable only when the women of the country will be educated and financially literate. Financial Literacy means the capability to make effective financial decision. A financially literate is able to make intellectual judgments and take effective choices regarding the usage and management of money.1 It is very encouraging to see that today women are at par with men in all fields but when it comes to financial decision-making, they are still dependent on the male members of their family. Financial literacy involves both concept and application and these two ends are tough to bring together in reality. It means that people should not only have the financial awareness but should be capable of practicing them in their day-to-day transactions.2

Review of Literature The magnitude of financial literacy has gained importance both in developed as well as emerging economies in the last decade. In India, an initiative was launched by in 2007 to establish Financial Literacy and Counseling Centers to promote financial education and counseling to urban and rural population throughout the country. Similarly, United States have also set up a counsel to offer financial education and increase access to financial services in 20083. There are many definitions of financial literacy. Organisation for Economic Co-operation Development defines financial literacy as “A combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial wellbeing.”4

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General awareness about financial planning among women remains poor even in the 21st century because of reasons like poor financial knowledge amongst the women, lack of awareness about financial products etc., and another main important factor is their dependence on other family members, in particular on male for finance related matters could be the reason for their non-involvement in financial decisions.5 Women empowerment refers to increasing the social, educational, financial, gender or economic strength of individuals and communities of women. Women’s empowerment in heavily dependent on many different factors that include geographical location (urban/rural) educational status, social status (class and caste) and age. Policies on Women’s empowerment exist at the National, State and Local (Panchayat) levels in many sectors, including financial health, education, economic opportunities etc. The Vedas and puranas of Indian portray women as goddess of wealth, wisdom and power. The woman in India predominantly in rural areas needs more empowering than urban because 66% of the female population in rural area are underutilized. In agriculture and Animal care the women contribute 90% of the total workforce. 6

Objectives of the Study 1. To know the demographic profiles of the Women Respondents of Chennai city. 2. To find the source of Financial Information based on their awareness. 3. To identify the underlying dimensions of Financial Investment Options. 4. To distinguish the significant difference between Common Investment Avenue Factor (CIAF), Uncommon Investment Avenue Factor (UIAF) and Financial Investment Option Total Score with respect to Financial Investment Awareness and Financial Investment Practice.

Research Methodology The intention of this study is to examine the Women Empowerment through Financial Literacy. The scope of the study is restricted to the limits of Chennai city only. The study is analytical in nature and primary data was collected through a well-designed structured questionnaire. One hundred questionnaires were administered to the respondents and 82 filled questionnaires were received. Sources of Financial Information were measures using 5 point Likert scale from strongly agree to strongly disagree. Awareness and Practice levels of Financial Investment variables were measured using 5 point Likert scale ranging from Very High to Very Low. To check the internal reliability of scale, Cronbach’s Alpha reliability coefficient was used. The value being 0.727, scale is fairly consistent and reliable.

Statistical Techniques Used The data collected were subjected to Percentage analysis, Descriptive Statistics, Mean Based Ranking, Factor analysis and Paired t test using SPSS Version 17.

Research Findings The average age of women respondents is 34.27 years and number of earning members in the family is twopersons. Majority of the respondents are married are living in nuclear family having Own House. A sizeable of the respondents have school education as education qualificationand majority are salaried. (Ref. Table 1 in Annexure).

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Mean based ranking reveals that among the five sources of information,the Mass Media (Radio and TV) provides highest information to the women respondents about financial literacy followed by friends and relatives, Print Media (Newspaper), Online Media (Internet) and Financial Planners/Analyst.(Ref. Table 2 in Annexure). Awareness about Financial Investment Options variables with their communality values ranging from 0.508 to 0.776 have goodness of fit for factorization. KMO-MSA value of 0.705 and chi-square value of 380.372 with df of 45 and P-value of <0.001 reveal that factor analysis can be applied for factorization of 10 variables. Two dominant independent factors explaining 60.802% of total variance have been extracted out of 10 Variables. Of them the most dominant factor is Common Investment Avenue Factor (CIAF) and Uncommon Investment Avenue Factor (UIAF) in the order of their dominance.(Ref. Table 3 in Annexure). There is a significant difference in Common Investment Avenue Factor (CIAF), Uncommon Investment Avenue Factor (UIAF) and Financial Investment Option Total Score with respect to financial investment awareness and financial investment practice. The women respondents have higher level of financial investment awareness than financial investment practice.(Ref. Table 4 in Annexure).

Annexure Table 1 Demographic Profile of the Respondents Total Age Observed In % Mean S.D Median Mode Skew Min. Max. 34.27 11.288 31.00 28 0.598 19 57 82 Years Years Years Years Years Years Years Number of Earning Members in the Family Mean S.D Median Mode Skew Min Max 2.04 0.838 2.00 2 1.220 1 5 82 Years Years Years Years Years Years Years Marital Status Married Unmarried Observed In % Observed In % 52 63.4 30 36.6 82 100 Family Size Nuclear Family Joint Family Observed In % Observed In % 72 87.8 10 12.2 82 100 Residential Status Own House Rented House Observed In % Observed In % 45 54.9 37 45.1 82 100 Educational Qualification School UG PG Professional Observed In % Observed In % Observed In % Observed In % 28 34.1 24 29.3 16 19.5 14 17.1 82 100 Occupation Homemaker Salaried Business Observed In % Observed In % Observed In % 27 32.9 50 61 5 6.1 82

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Table 2 Mean Based Ranking of Sources of Financial Information Sources of Financial Information Mean Rank 1. Mass Media (Radio and TV) 4.39 1 2. Print Media (Newspaper) 3.93 3 3. Online Media (Internet) 3.74 4 4. Friends and Relatives 3.95 2 5. Financial Planners/Analyst 2.16 5

Table 3 Factorisation of Awareness of Financial Investment Options (FIO) Variables % of Factors & their Factor Variance Variables Communalities MSA Mean Labels Loading explained Factor 1 30.621 Saving Bank 0.767 0.605 0.754 4.84 Common Account Investment Real Estate 0.737 0.559 0.821 3.83 Avenue Gold/Silver 0.730 0.535 0.637 4.46 (CIA) Fixed 0.714 0.614 0.719 4.55 Deposit Post Office 0.697 0.530 0.768 4.23 Saving Chit Fund 0.522 0.508 0.671 3.27 Factor 2 30.181 Mutual Funds 0.880 0.776 0.645 2.18 Uncommon Shares in 0.853 0.732 0.612 2.23 Investment Company Avenue Public 0.749 0.654 0.768 3.67 (UIA) Provident Fund National 0.734 0.568 0.742 2.95 Saving KMO-MSA= 0.705, Total % of Variance explained = 60.802 Bartlett’s Test of Sphericity chi-square value of 380.372 with df of 45 and P value of <0.001

Table 4 Significance of Difference between Awareness and Practice in Financial Investment Options and Total Score Financial Investment t P Groups Mean S.D df Inference Option Value Value Common Investment Awareness 25.183 3.259 Avenue Factor 11.979 81 0.000 Significant Practice 20.439 3.814 (CIAF) Un common Investment Awareness 11.037 4.209 Avenue Factor 11.044 81 0.000 Significant Practice 7.549 3.396 (UIAF) Financial Investment Option Awareness 36.220 5.502 Total Score 13.201 81 0.000 Significant Practice 27.988 5.170

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Suggestions and Conclusion 1. The banks and other financial institutions should target margnialised and rural women to increase the savings habit through formalised channel by starting savings bank account. 2. Pradhan Mantri Jan Dhan Yojana scheme can be effectively implemented by banks by promoting in rural areas to increase the financial literacy. 3. Financial institutions may also further advertise through other channels other than the mass media. As the literacy level has improved, it can resort to print media and online media as well. 4. Uncommon financial investment avenue awareness should be promoted among the public. Mutual funds have multiple benefit of small money and good returns. National Savings Scheme and PPF enables the women for tax exemption. Therefore, these investment avenues should be made possible. 5. The practice level of financial options of women is in short compared to their awareness. Therefore, the women respondents should try to minimise the expenses and maximise the savings which enables them to have financial freedom.

References 1. Noctor, M., Stoney, S. and Stradling, R. (1992), Financial literacy: A discussion of concepts and competences of financial literacy and opportunities for its introduction into young people’s learning, London: National Foundation for Educational Research 2. Arora, A. (2016), ‘Assessment of Financial Literacy amongst Working Indian Women’, Business Analyst, Vol. 36, Issue 2, pp.219-237 3. Cole, S., and Kartini S., (2009), Smart Money: The Effect of Education, Cognitive Ability, and Financial Literac yon Financial Market Participation, Harvard Business School Working Paper 09-071 4. Atkinson, A. and Messy, F. (2012), “Measuring Financial Literacy: Results of the OECD International Network on Financial Education (INFE) Pilot Study”, OECD Working Papers on Finance, Insurance and Private Pensions, No.15, OECD Publishing. http://dx.doi.org/10.1787/5k9csfs90fr4-en. 5. Arora, A. (2016), ‘Assessment of Financial Literacy amongst Working Indian Women’, Business Analyst, Vol. 36, Issue 2, pp.219-237 6. Dr. (Smt.) Rajeshwari M. Shettar and Dr. (Smt.) S. M. Sheshgiri Apr2015 A Study on Issues and Challenges of Women Empowerment in India, IOSR Journal of Business and Management (IOSR-JBM)e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 17, Issue 4.Ver. I (Apr. 2015), PP 13-19

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INSURANCE SECTOR REFORMS IN INDIA

Dr. K. Thamizhselvan Assistant Professor, Department of Commerce Annamalai University, Annamalainagar, Tamilnadu

Dr. C. Kandasamy Professor of Management Studies Sree Dattha Growth of Institutions, Ibrahim Patnanu, Hyderabad

Introduction The growth of insurance industry is associated with the general growth if industry, trade and commerce. Insurance industry assists the development process of an economy. Basically, insurance industry acts as a facilitator of savings, financial intermediary, promoter of investment activity, stabilizer of financial market, risk manager and an agent to allocate capital resources efficiently. Although the insurance industry has grown rapidly in the industrial countries its growth in developing countries has neither been satisfactory nor in tandem with the growth of other sectors of the economy. The slow growth of insurance services in developing countries calls for an in-depth analysis of the nature and pattern of the evolution of these services. Policies pursued to develop the insurance industry and constraints there of also need a thorough examination. Despite the fact that general insurance services started in India about 150 years ago their growth has been dilatory, as well reflected by its low insurance penetration and density. Several factors are responsible for this state of affairs the chief being the monopoly status of the industry till recently. Organisation structure is the source of the most cunning, premeditated and potentially most destructive type of change resistance

Concept of Insurance Too many people in this country are not in employment; and work for too many no longer guarantees income security. Several millions are part-time, self employed and low-earning workers living under pitiable circumstances where there is no security cover against risk. Further the inherent changing employment risks, the prospect of continual change in the work place with its attendant threats of unemployment and low pay especially after the adoption of New Economic Policy and the imminent lifecycle risks - a new source of insecurity which includes the changing demands of family life, separation, divorce and elderly dependents are tormenting the society. Risk has become central to one's life. It is within this background life insurance policy has been introduced by the insurance companies covering risks at various levels. Life insurance coverage is against disablement or in the event of death of the insured, economic support for the dependents. It is a measure of social security to livelihood for the insured or 3 dependents. This is to make the right to life meaningful, worth living and right to livelihood a means for sustenance. Therefore, it goes without saying that an appropriate life insurance policy within the paying capacity and means of the insured to pay premium is one of

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” the social security measures envisaged under the Indian Constitution. Hence, right to social security, protection of the family, economic empowerment to the poor and disadvantaged are integral part of the right to life and dignity of the person guaranteed in the constitution.

History of Insurance In India The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era-past few centuries – yet its beginnings date back almost 6000 years. Protection from uncertainty and loss has been a primary goal of humans and institutions throughout history. Protecting against these risks is what insurance is all about. It actually started nearly 4,500 years ago, in the ancient land of Babylonia where, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. The type of insurance we see today owes its roots to 17th century to Lloyd's of London, of England. Lloyd's Coffee House was the location where merchants, ship owners and underwriters met to discuss and transact business deals. Insurance moved to America in the year 1735 and the first life insurance policy for the general public in the United States was issued, in Philadelphia, on May 22, 1761. Then public liability insurance made its appearance in the 1880s and gained importance and acceptance. During the 19th century, many societies were founded to insure the life and health of their members. The insurance business made its way in India in 18th century. Life Insurance business came into existence in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Bombay Mutual Assurance Society Ltd., formed in the year 1870. The Bharat Life Insurance Company in 1896 and the Empire Life Insurance of India in 1897. Following 21 this; the Hindustan Co-operative Life Insurance was formed in Calcutta, the United Life Insurance in Madras, the Bombay Life Insurance in Bombay, the National Life Insurance in Calcutta, the Jupiter Life Insurance in Bombay and the Lakshmi Insurance in New . By the year 1956, when the Life Insurance business was nationalized and Life Insurance Corporation of India (LIC) was formed on 1st September 1956, there were 170 companies and 75 provident fund societies transacting life insurance business in India. Later on, after the amendment to the relevant laws in 1999, the LIC did not have the exclusive privilege of doing life insurance business in India. Currently, at least 24 life insurers are operating in the market (as per IRDA Report, Nov 2012). The history of insurance in India is deep-rooted. Since the earliest times insurance has been carried out in some form or other. Insurance in India has developed over time and has taken ideas from other countries – England in particular. First Indian Insurance Act was passed in 1912 with re-enactment in 1938 and amendment in 1950. Despite this, when 25 insurance companies went into liquidation, malpractices and unethical business practices clouded the industry. C D Deshmukh as the then Finance Minister ushered in the era of nationalized Life Insurance Corporation of India. From then on insurance in India is mostly state owned with sovereign indemnity.

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Insurance Sector Reforms When the insurance business was thrown open in the year 2000 to the private sector and foreign insurance companies there was high hope and great expectations in the market. The Insurance Regulatory Development Authority of insurance was first conceptualised. It is basically the unforeseen contingencies of human life that has given a totally new looked to the insurance industry. Gradually as competition increased the benefits given by the industry to its customers improved by leaps and bounds. The journey of insurance liberalisation process in India is now over seven years old. The first major mile stone on this journey has been the passing of Insurance Regulatory and Development Authority Act, 1999. This along with amendments to the Insurance Act, 1938, LIC & GIC Acts paves the way for the entry of private players and possibility for privatisation of the lither to public monopolies LIC & GIC. Opening of insurance to private sector including foreign participation has resulted into various opportunities and challenges. According to the Malhotra committee report, the reforms were aimed at, “Creating more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms”. The committee strongly felt that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt that the need to 49 exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body. The decade of ninety will go in the annals of India as the era of economic crisis and reforms. Like many economies in the world today, Indian government also is adopting policies for a new economy. The government and its principal actors are quite genuine about the goal of such policies. They are persuaded that their policies will get the country to the desired goal of growth and economic welfare of the larger section of the nation. These policies are contained in a package known as ‘economic reforms’. The latest economic reforms had begun in 1991. The main theme and thrust of the economic reform is generally described as E Liberalisation Ê Privatisation and E Globalisation

Growth and Trends in Global Insurance Industry Global economy is reshaping and restructuring day by day and dynamic competitive forces are influencing all the segment of societies and business activities including insurance. Increasing demand of life insurance is an opportunity for global insurers and new entrants. The emerging insurance market is opening a new way for transnational and multinational corporations too. The increasing life expectancy, better health care facilities and increasing population are some of the causes influencing demand of life insurance in many countries. Strong economic growth and catch-up dynamics has positive impact on growth trend. The profitability of life business continued to improve in many countries as costs were cut, guaranteed interest rates were reduced, changes in repo rates and reverse repo rates and profit participation was adjusted to reflect the low interest environment. All these improvements have

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” reflected in the increased level of life insurer’s risk capital. The global growth performance in insurance business varied between industrialized countries and emerging markets. While industrialized countries shown a small growth where as emerging markets exhibited a robust growth in the insurance sector.

Conclusion and Policy Implications  In the global era, Insurance companies are increasingly willing to spend more on the customer satisfaction and brand building exercises. Though it is one of the highly regulated industries, it still provides lot of scope for creativity and innovations.  Insurance is a capital-intensive industry. It is also a long-gestation business. India's insurance industry needs capital, and a major source of capital would be from foreign investors, who are now limited to 26 percent ownership. India 151 needs to raise the cap on Foreign Direct Investment (FDI) to attract capital for the industry.  New private insurers have used innovative distribution channels to reach a broader range of the population.  Innovative products, smart marketing and aggressive distribution-That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative 149 products on offer.

References 1. Bajaj Allianz Life Insurance, Financial Consultants Training Manual 2. Bharti-Axa Life Insurance Company Ltd., Life Advisor Training Guide. 3. Black, Kenneth Jr ; and Harold D. Skipper Jr: “Life Insurance”, 13th ed, Prentice hall 2000 4. HDFC Life Insurance, Insurance Consultants In house Training Manual. 5. IC 33, 2007, Life Insurance (New Syllabus), Agents 50 hours Training Handbook, 1st ed. Insurance Institute of India, . 6. Insurance Institute of India. Annual Reports, 2005 to 2011.

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A STUDY ON FACTORS AFFECTING EMPLOYEE RETENTION WITH SPECIAL REFERENCE TO SHARADAA CERAMICS PRIVATE LIMITED IN CHENNAI

M. Sabariraj, M.Com., M.Phil., B.Ed., SET., Assistant Professor, PG and Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil Arts and Science College, Mailam, Tamilnadu, India

V.Suganthi, M.Com., M.Phil., Assistant Professor, Department of Commerce Sri Akilandeswari Womens College, Vandavasi, Tamilnadu, India

Abstract The purpose of this dissertation is to analyse the factors affecting employee retention in the manufacturing industry. There are many factors in the manufacturing industry which affect the employee’s work but there are some major factors which influence them to leave the organisation. Employee retention is one of the major challenges faced by the manufacturing industry due to which the turnover rate of employee increases manufacturing industry is growing day by day and it need more employees but due to the labour exhausting job and challenging work most of the people leave the manufacturing industry to early and look for better opportunities. The research is focused to find out the major factors which influence the staff to leave and to measure the gender, age and length of service affects the level of satisfaction of retention factors. The researchers use the quantitative method to analyse the collected data. The researcher distributed a questionnaire to all the participants and received responses from the employees of Sharadaa Ceramics Private limited in Chennai. There were total 80responses received for the survey and then transferred to excel sheet and then analysed on SPSS statistical tool. The researcher provided some open ended question to know the viewpoint of the respondents in which the participants gave a mix response for staying and leaving the organisation but from their statement it is clear that they want the manufacturing industry to improve the training and development process, work life balance, Employee retention strategies, working environment, welfare measures and reward and recognition policy. This research can be considered by the employers, management and Human resource staff of the manufacturing industry. Keywords: Employee retention, challenges of industry, working environment, level of satisfaction, retention strategies and factors, reward and recognition policy.

Introduction Employees are an asset of an organization. The more time an employee spends in an organization, the more experienced the / gets and becomes more valuable to the organization. Companies make a great deal of investment in hiring an employee. This includes advertisements for the job vacancies, paying the recruiter, time and effort spent in conducting interviews and selection etc. Also, when an employee joins an organization, he is not as productive to the organization because he is not familiar with the systems and procedures of the organization and in full-time jobs it takes at least couple of months for the employee to get himself aligned with the organization. The discussion so far does not take into account the fact that there might be gaps in knowledge of the employee relating to technology and skill set required for the job. If so, it takes the company considerable amount of resources to train the employee.

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There are firms which do not produce physical products or services. Their production houses are the brains of their employees. The products that these organizations produce are reports, documents and data generated by the employees. In such cases the importance of the employee to the organization need not be over emphasized. There are a number of examples of such organizations. One is the judiciary in which the quality of the product produced is measured in terms of the verdict produced by the judges. Another example is that of research institutions which primarily depend on the creativity of their employees. Yet another example is that of patent firms which assist a companies or research organizations in getting patents for the invention the organizations claim to have made. Firms spend quite a few months to train the employee in patent law and after that the work produced by the employee is supervised for a number of months to ensure that the reports produced by the employees conforms to patent law. On the average it takes more than a year before the employee can produce his own work independently. Having spent so much on the employee in terms of time, effort and money, it is a big loss to the organization if the employee decides to leave the job before working in the organization for at least five years. However, despite efforts by these employers to retain their employees, staff turnover is a major problem faced by firms.

Statement of the Problem Today there is a high demand in the public and private sections for workers in critical areas such as health care information technology, engineering, accounting, and auditing. The supply of qualified workers is limited and good workforce planning requires a twofold approach of aggressive recruitment and innovative retention strategies. Factors that contribute to employee retention are varied and have been verified to an extent by equally varied models and theories. The literature surveyed by this study mention employee motivation, job satisfaction, working Environment, Welfare Measure and Reward and Recognition as the main factors that influence employee retention rates. Organizations typically apply some of these factors in the development and implementation of their employee retention strategies. There is however little information on the strategies to adopt when dealing with knowledge-intensive industries. The nature of jobs in these kinds of industries directs the employee to use his creative abilities together with extensive knowledge about a subject. The strategies applied to retain the knowledge worker may need to be adjusted to some extent as compared to other workers, say factory workers. The problem is that retention policies on strategies are not focused on elimination of unwanted turnover. It is also believed that the costs to the employer as a result of management’s inability of retain its employees include separation benefits to the employee, lost productivity, recruitment cost, training costs and diminished service as a new employee get up to speed. The study seek to verify the truth or otherwise in this statement.

Objectives of the Study The present study is designed to analysis the factors influencing employee retention with the special reference to Sharadaa Ceramics Private Limited in Chennai with the following objectives.

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1. To study the employee retention practice with specific reference to Sharadaa Ceramics Private Limited. 2. To find employee overall satisfaction in the organization with relation to work environment culture. 3. To examine the training and development activities provided and to identify whether it leads to improved co – ordination among employees in their work. 4. To analyze the reward and compensation factors. 5. To make suggestions to the organization to improve its employee retention strategies.

Hypotheses of the Study 1. H0: There is no significant relationship between length of service in the present organization with respect to their age, educational qualification, gender, organizational hierarchy and marital status. 2. H0: There is no significant relationship between various factors of retention in the present organization with respect to their age, educational qualification, gender, organizational hierarchy and marital status.

Review of Literature Zuber, (2001) found that employees are more likely to stay when there is a predictable work environment and vice versa. Zuber also stated that instable organization have a high degree of employee turnover. Wells & Thelen (2002)have stated in their study that organizations which have generous human resource policies, have a very good chance to satisfy and retain employees by providing them an appropriate level of privacy and sound control on work environment which enhances the motivation levels to commit with the organization for the long term. Allen, Shore and Griffeth (2003), Employees have to differentiate themselves from others through their compensation strategy in order to attract and retain quality employees. Therefore, an organization’s compensation strategy should be able to attract the right quality of employees, retain suitable employees and also to maintain equity amongst the employees. Gomez-Mejia, Balkin and Cardy (2004)2, internal equity and external equity should be observed in terms of remuneration if the compensation package is to be used as a retention strategy. Hytter (2007) found that factors such as personal premises of loyalty, trust, commitment, and identification and attachment with the organization have a direct influence on employee retention. Gberevbie (2008), has stated that employee retention strategies refer to the plans and means, and a set of decision-making behavior put formulated by the organizations to retain their competent workforce for performance.

Methodology Sampling techniques For the purpose of selecting the samples for the study a sample size of 80 was selected on non-probability sampling method.

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Methods of data collection This study is based on questionnaire method. Primary data were collected from the employee from Sharadaa Ceramics Private Limited in Chennai.

Tools used for analysis Based on the data collected from the sample users, a master table was prepared from which sub tables were prepared. The statistical technique used in the analysis includes the following, Simple Percentage Analysis, Chi-Square Analysis, Analysis of Variance.

Analysis and Interpretation Table Various demographic factors with Length of service in the present organization H0: There is no significant relationship between gender and Length of service in the present organization Gender * Length of service in present organization (in years) length of service in present organization less Total 16-10 15-Nov 16-20 Above 20 than5 Count 49 11 4 3 2 69 Male Expected count 49.2 10.4 3.4 3.4 2.6 69 % within Gender 71.10% 15.90% 5.80% 3.5% 2.90% 100% Gender Count 8 1 0 1 1 11 Female Expected count 7.8 1.6 0.6 0.6 0.4 11 % within Gender 72.70% 9.10% 0.55% 0.55% 9.10% 100% Count 57 12 4 4 3 80 Total Expected count 57 12 4 4 3 80 % within Gender 71.30% 15% 5% 5% 3.70% 100%

Chi - square Asymp.sig. Interpretation value df (2-side) The above Table indicates that there is no Pearson Chi-square 5.767a 4 0.217 significant association between gender and likelihood Ratio 9.121 4 0.058 length of service. It can be inferred that Linear- by-Linear irrespective of gender the organization Association 3.583 1 0.068 policies remain the same and hence there is Not Valid Cases 500 no association between gender and length of service. Table showing relationship between Age Group and Length of Service in present organization H0: There is no relationship between age and Length of service in the present organization H1: There is significant relationship between age and Length of service in the present organization Age Group (in year)*Length of service in present organization (in year)cross tabulation Length of service in present organization(in years) Total less than5 6-10 11-15 16-20 Count 46 1 1 0 48 Age Group Expected count 35.4 6.6 3.4 3 48 Below 25 (in year) % with in age group 95.8% 2.1% 2.1% 0.1% 100% (in year)

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25-35 Count 11 8 1 2 22 Expected count 16.2 3 1.4 1.4 22 % with in age group 50% 36.14% 4.5% 9.1% 100% (in year) 36-45 Count 2 1 3 1 7 Expected count 5.2 1 0.4 0.4 7 % with in age group 28.6% 14.3% 42.8% 14.3% 100% (in year) 46-55 Count 0 1 0 1 2 Expected count 1.5 0.3 0.1 0.1 2 % with in age group 0% 50% 0% 50% 100% (in year) Above 55 Count 0 0 1 1 2 Expected count 1.5 0.3 0.1 0.1 2 % with in age group 0% 0% 50% 50% 100% (in year) Count 59 11 5 5 80 Expected count 59 11 5 5 80 Total % with in age group 73.8% 13.6% 6.3% 6.3% 100% (in year)

Chi-square Asymp.sig. Interpretation value df (2-side) There is significant association between age Pearson Chi-square 364.3a 6 .000 and length of service. likelihood Ratio 245 6 .000 Linear- by-Linear 200.6 1 .000 Association Not Valid Cases 479 Table showing relationship between Organizational Hierarchy and Length of Service in present organization H0: There is no association between organizational Hierarchy and Length of service in the present organization H1: There is significant association between organizational Hierarchy and Length of service in the present organization Crosstab Length of service in present organization(in years) Total less than 5 10-Jun 15-Nov 16-20 Above20 Count 0 0 1 1 1 3 Expected count 2.1 0.4 0.3 0.1 0.1 3 Top level % with in age group 0% 0% 33.33% 33.33% 33.34% 100% (in year) Count 20 8 6 1 0 35 organizational Expected count 24.9 4.8 3.5 0.9 0.9 5 Middle level hierarchy % with in age group 57.40% 22.90% 17.10% 2.90% 0% 100% (in year) Count 37 3 1 0 1 42 shop floor Expected count 29.9 5.7 4.2 1.1 1.1 42 level % with in age group 88.10% 7.1% 2.40% 0% 2.40% 100% (in year) Total Count 57 11 8 2 2 80

Expected count 57 11 8 2 2 80 % with in age group 71.20% 13.80% 10.00% 2.50% 2.50% 100 (in year)

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Chi-square Asymp.sig. Interpretation value df (2-side) There is significant association between Pearson Chi- 148.893a 8 0 square organizational Hierarchy and Length of likelihood Ratio 130.712 8 0 service in the present organization. Linear- by-Linear Association 109.644 1 0 Not Valid Cases 500 0

Table showing relationship between educational background and Length of Service in present organization H0: There is no relationship between educational background and Length of service in the present organization H1: There is significant relationship between educational background and Length of service in the present organization. Crosstab Length of service in present organization(in years) less 6-10 11-15 16-20 Above20 Total than5 count 6 1 0 0 1 8 Up to Expected count 5.7 1.2 0.4 0.4 0.3 8 high % with in age group school 75% 12.5% 0% 0% 12.5% 100% (in year) count 22 6 1 2 0 31 Bachelor Expected count 22 5 1.6 1.6 1.16 31 Degree % with in age group 71% 19.35% 3.2% 6.45% 0% 100% Educational (in year) qualification count 4 3 2 1 1 11 Master Expected count 7.83 1.65 0.55 0.55 0.41 11 Degree % with in age group 36.4% 27.3% 18.18 % 9 9 100% (in year) count 25 2 1 1 1 30 Diploma Expected count 21 5 1.5 1.5 1 30 holder % with in age group 83.33% 6.67% 3.33% 3.33% 3.33% 100% (in year) Total count 57 12 4 4 3 80

Expected count 57 12 4 4 3 80 % with in age group 71.3% 15 % 5% 5% 3.7% 100% (in year)

Chi-square Asymp.sig. Interpretation value df (2-side) There is significant association between Pearson Chi- 98.415a 12 .000 educational background and Length of service square in the present organization. likelihood Ratio 103.025 12 .000 Linear- by-Linear

Association 0.214 1 .643

Not Valid Cases 500

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Findings, Suggestions and Conclusion Findings  From the above Table 4.1 and from Figure 4.1 it is inferred that majority of respondents are male and only 13.8 percentages are female.  The above Table 4.2 and Figure 4.2 shows that the age-wise classification of the respondents are depicts 60.6 % of respondents belong to below 25 years of age category, 26.25 % belong to 25-35 and the remaining 12.75% comprises of the other age groups.  The above Table 4.3 and Figure 4.3 shows that depict 73.75 % of respondents belong to less than 5 years of age category, 15% belong to 6-10 and the remaining 11.25% comprises of the other groups.  The above Table 4.4 and Figurer 4.4 shows that 52.2 percentages of respondents are from staff cadre and 43.6 percentages comprises of managerial cadre and 4.2 percentages of respondents belong to top management.  From the above Table 4.5 and Figure 4.5 it has been inferred that majority of respondents are Diploma holders and Bachelor degree holders (75%) and 14.4 percentages hold master degree and only a marginal portion constitute to school level.  The above table 4.6 and from Figure 4.6 depicts the frequency analysis of married and unmarried. It shows that about 64.2% are unmarried, 35.8% are married.

Suggestions Employee’s opinion towards retention  From the study it has been inferred that the employees wish to have job rotation and assigning new task so that they may not have monotony in work.  The employees also have specified that providing of staff quarters facility will improve retention among married employees.  The management should take into consideration the opinions and suggestions of employees.  Proper coordination and good superior subordinate relationship should be maintained.  More training and development programs could be provided for employee to improve new skills so that they will have better motivation towards their work.  The organization should concentrate to be friendlier and have personal touch with employees so that their problems could be handled in a better way.  Performance appraisal should be conducted periodically and better rewards and recognition should be provided for excellent employees, which will increase retention.  Offer a competitive compensation package and better career prospects.  Married employees also feel that they could have educational loans for their wards for higher education and providing job for family members will improve the morale and loyalty towards the company.  The organization should provide an environment so that the employees can have a balance between official work and personal life.

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Management opinion towards retention  The management should advocate a fair compensation policy according to the cadre and based on their job description.  The organization has to provide good opportunities for career growth and also for knowledge development.  Employee recreation activities are to be given importance and it should not be considered as waste of time and money.  The management should offer rewards and acknowledgement.  The management should conduct regular interviews and allow employees to give their feedback about job and they can succeed in their prospects.  The employer has to make sure that the employees know their roles, responsibilities and job specification by implementing effective communication system irrespective of hierarchy.  The management should include employees in decision making.  The organization should provide a trust worthy work environment.  The management should provide a proper performance appraisal system.  All employees should be treated equally and there should be no discrimination.

Society opinion towards retention  Better employee retention will improve the living standard of the society.  The local economy will be well developed.

Conclusion This study investigated the relationship between various factors like job satisfaction, superior subordinate relationship, attributes influencing to remain in present organization, work environment, organizational culture, rewards and recognition with employee retention. The study utilized a survey method and the results of 80 respondents were the basis for statistical findings. The information obtained through this study will help the employees to address their needs to the management so that they can implement their requirements and can retain their best talents. The Sharadaa ceramics private limited in Chennai, selected for this study have adopted suitable policies and regulations so that retention is higher for these organizations. However the organizations should know to identify the benefits of retaining the employees so that it can achieve its business objective and can gain competitive advantage over their competitors. As employees are the bases for company, retention of employees is a major focus for HR department. The management should identify the important factors that affect retention and should take necessary measures to improve these. Also, the management should take appropriate measure to identify the reasons of employees voluntarily leave. It is only the employees that implement and give tangibility to the corporate mission. In other words if it is the highest rung in the corporate hierarchy that has ideas, it is the employees’ rung that has the chisel to bring the vision to life. In the best of worlds, employees would love their jobs. Like their co-workers, work hard for their employers, get paid well for their work, have ample chances of advancement and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then there’s the real world. Andin the real world, employees, do, leave, either because they want more money, hate the working conditions, hate

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their co-workers, want a change, or because their spouse gets a dream job in another state. Unlike inanimate products and systems that subject themselves to fine tuning without any reaction, employees would not subject themselves to any measure taken without reaction and analysis. Hence managing human resources, particularly retaining them, is an art that calls for special skills and strategies. Employee survey and exit interviews can be used for assessing the reasons of employee voluntarily leave. HR interventions such as improving selection process, effective orientation and training, better employee relation, better career development programs and planning should be used to improve employee retention. Thus it can be concluded by indicating that organizations should concentrate in identifying employees and also identify their needs with respect to their career, education and family. So that this positive approach of the organization will increase the retention of employees.

References 1. Zuber, (2001)found that employees are more likely to stay when there is a predictable work environment and vice versa. Zuber also stated that instable organization have a high degree of employee turnover. 2. Wells, M., &Thelen, L. (2002) what does your workspace say about you? The influence of personality, status and workspace on personalization. Environment and Behavior, 3: 300-321. 3. Allen, D. G., Shore, L. M., &Griffeth, R. W. (2003). The role of perceived organizational support and supportive human resource practices in the turnover process. Journal of Management, 29(1), 99-118. 4. Gomez-Mejia, L. R., Balkin, D. B. & Robert, L. C. (2004). Managing Human Resources: 4th edition, Prentice Hall, USA. 5. Hytter, A. (2007). Retention strategies in France and Sweden. The Irish Journal of Management, 28(1), 59–79. 6. Gberevbie DE.2008. Staff Recruitment, Retention Strategies and Performance of Selected public and private organizations in Nigeria. Ph.D. Thesis.Coll.Bus.Soc.Sic., CovenantUni, Ota. 7. Ananthan, BR SudheendraRaa LN (2011) “Multi-Tier view of employee retention strategies in Indian and global companies a critical appraisal” International Journal of research in commerce & management, Volume No. 2 (2011) Issue No 9 (September), 2011. 8. Abegglen, J.C (1958). The Japanese Factory. Aspects of Its Social Organization. Free Press. Glencoe. IL 9. Aswathappa, Human Resource Management, 5th ed., Tata McGraw-Hill Publishing Company Limited, New Delhi, 2008.Herzberg, F. (1966). Work and the nature of management. Cleveland: World. 10. Gupta. C.B., Human Resource Management, Sultan Chand & Sons, New Delhi, 2009.

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THE MANAGER’S ROLE IN STRATEGIC HUMAN RESOURCE MANAGEMENT

Dr. S. Anandarajan, M.Com, M.Phil, Ph.D., HOD, PG and Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil Arts and Science College, Mailam, Tamilnadu

T. Amudhamangaiyarkkarasi M.Phil. Research Scholar, Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam, Tamilnadu

Abstract Managers must adopt their department’s personnel activities to the requirements of their company’s strategic plans. For example, who you hire and how you train and pay them should make sense in terms of your company’s strategic aims. The main purpose of this chapter is to explain the fundamentals of strategic human resource planning. We’ll explain the “hierarchy of goals”, the overall planning process, and the manager’s role in strategic planning, strategic human resources management, and creating high-performance organizations.

Why Strategic Planning is Important to all Managers You may not realize it when you are managing, but your company’s strategic plan is guiding much of what you do. Management expert Peter Drucker once said that management “is the responsibility for execution”. What he means is that as a manager you’ll be judged on at least one thing – on the extent to which you accomplished your unit’s goals .Organizations exist to achieve some purpose, and if they fail to achieve their ends, to that extent they have failed.

The Hierarchy of Goals Let’s start with a bird’s eye view of why strategic planning is important to you. It is important because, as we said, in well-run companies the goals from the very top of the organization down to where you are working should form a more-or-less unbroken chain (or “hierarchy”) of goals.

Fundamentals of Management Planning People make plans every day, often without giving it a thought .We plan our routes to school, what courses to take, and what to do on Saturday night. Underlying all those plans, however, is an often unstated planning process.

The Planning Process Consider how you might create a plan for your career. You might:  Tentatively set an objective, such as “to work as a management consultant”.  Make forecasts, for instance, of industry trends and to check your basic assumptions about things like your strengths and weakness to determine your consulting prospects.  Determine what your alternatives are for getting from where you are now to where you are want to be .Your aim here is to help you identify what courses of action (including college major and summer experiences ) will get you to your goal best.

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 `D`Evaluate your alternatives.  Finally, implement and evaluate your plan.

Objectives of Managers Financial goals are the bottom line of planning. The whole point of planning is to decide what the company is to do, and then to express what you want all its employees to do, in terms of goals.

Motivational Goals Goals are only useful if employees are motivated to achieve them. Research known as the goal-setting studies provides useful insights into setting motivational goals. They suggest the following:  Assign Specific Goals: Employees who have specific goals usually perform better than those who do not. Setting specific goals with subordinates (rather than setting no goals or telling them to “do their best”) is probably the simplest effective way to subordinates.  Assign Measurable Goals: Always try to express the goal in terms of numbers, and include target dates or deadlines.  Assign Challenging but Doable Goals: Goals should be challenging, but not so difficult that they appear impossible or realistic.  Encourage Participation: Throughout your management career, you’ll face this decision.

Using Management by Objectives With management by objectives (MBO), the supervisor and subordinate jointly set goals for the latter and periodically assess progress toward those goals. You can engage in a modest MBO program by setting goals with your subordinates and periodically providing feedback.

The MBO process typically consists of five steps 1. Set Organization goals: Top management sets strategic goals for the company. 2. Set Department goals: Department heads and their superiors jointly set supporting goals for their departments. 3. Discuss Department goals: Department heads present department goals and ask all subordinates to develop their own individual goals. 4. Set Individual goals: Goals are set for each subordinate, and a timetable is assigned for accomplishing those goals. 5. Give Feedback: Supervisor and subordinate meet periodically to review the subordinate’s performance and to monitor and analyze progress towards his or her goals.

The Strategic Management Process In practice, determining what the company’s long-term, overall plan should be requires some special tools. For example, you need to be able to systematically review the competitive landscape and analyze what your best strategic, long-term courses of action might be. Strategic planning, which we turn to now, provide these special tools . A strategic plan is the company’s plan for how it will match its internal strengths and weakness with external opportunities and threats in order to maintain a competitive advantage.

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The essence of strategic planning is to ask, “where are we now as a business, where do we want to be, and how should we get there?” The manager then formulates specific (human resources and other) strategies to take the company from where it is now to where he or she wants it to be.

Types of Strategies In practice, managers use three types of strategies, one for each level of the company. There is corporate-wide strategic planning, business unit (or competitive) strategic planning, and functional (or departmental) strategic planning.

Strategic human Resource Management We have seen that once a company decides how it’s going to compete, it turns to formulating departmental strategies to support its competitive aims. One of those departments is human resource managements. Every company needs its human resource management policies and activities to make sense in terms of its broad strategic aims. Strategic human resource management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

Strategic Planning Strategic human resource management is the part of strategic planning .A strategic plan is the company’s plan for how it will match its internal strengths and weakness with external opportunities and threats in order to maintain a competitive advantage. The essence of strategic planning is to ask, “Where are we now as businesses, where do we want to be, and should we get there?”The manager then formulates specific (human resource and other) strategies to take the company from where it is now to where he or she wants it to be. A strategy is a course of action. Signicast’s strategies included closing the old plant and replacing it with a new, highly automated one.

Effective HR Practices How Human Resources practices can improve performance. For example, a recent review of personality testing’s effectiveness concluded that screening applicants through personality testing can produce employees who perform better.

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High-performance Work Systems: In fact, a growing body of evidences shows that the best performing companies in a wide range of industries perform so well in part because of their high-performance work systems. A high performance work system is an integrated set of human resource management policies and practices that together produce superior employee performance. While there’s no hard and fast rule what comprises high-performance work systems, most organizational psychologists would agree they include these practices:  Employment security  Selective hiring  Extensive training  Self -managed teams and decentralized decision making  Reduced status distinctions between managers and workers  Information sharing  Contingent (pay-for-performance)rewards  Transformational leadership (for instance, in terms of inspirational motivation)  Measurement of management practices  Emphasis on high-quality work

HR Qualifications As the human resource manager’s tasks grow more complex, human resource management is becoming more professionalized. In the United States, the Society of Human Resource Management’s (SHRM) professional certification exams test the professional’s knowledge of all aspects of human resource management, including management practices, staffing, development, compensation, labor relations and healthy and safety.

Suggestions  Certain environmental factors may play an enabling role in the implementation of the disability management strategy. The environmental factors may be either internal or external to the workplace. The internal factors fall within the ambit of responsibility of certain role-players within the workplace while the external factors require action from government and other external stakeholders.  The growing of the economy is an important aspect in the employment strategy. Increased economic growth would create more employment opportunities and would allow more persons with disabilities to find employment. Yet, the environment within which the disabled person applies for these positions must allow them to compete fairly for these jobs.  It is necessary to manage these constraints to ensure that more persons with disabilities are employed. The importance of creating jobs and wealth for persons with disabilities is derived from the fact that it impacts directly on their quality of life, self-worth, self-reliance, the distribution of resources and empowerment. Persons with disabilities are regarded as the poorest of the poor and are generally employed in inferior positions, if they are employed.

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Conclusion The results of the study show that the current levels of services provided by the HR department were found to be of a moderate level. Only one organization out of the total organizations showed a high level of service quality. Although many Indian organizations have been certified at the highest level i.e. SEI CMM level 5, the quality of services provided by these organizations is of moderate quality. However in absence of comparative data regarding the quality of services in other service sectors or in the manufacturing sector, it is difficult to comment 405 about the relative quality of services in these organizations. A comparative study of the relationship between HRM practice and strategy in the service (Banking and financial services) and manufacturing. (Electronics / electrical, textile, food and ) The study did not find that service firms exhibited stronger fit between HRM practice and strategy. Organizations and HR department can thus formulate appropriate plans, policies, programmes and strategies to make the HR function more strategic and improve the quality of services provided by the HR department. It will also be of great help for organization to align and involve the HR function in the process of strategy formulation and implementation.

Reference Books 1. Human Resource Management, Gary Dessler-BijuVarkkey, Twelfth Edition, Pearson Publications, Pp.85-101. 2. Human Resource Management, Gary Dessler-BijuVarkkey, Eleventh Edition, Pearson Publications, Pp.12-15, 18. 3. Mitchell Rothstein and Richard Goffin, “The Use Of Personnel Selection: What does Current Research Report?”, HRM Review 16,2006,pp.155-180. 4. HRM as a predictor of Innovation”, HRM Journal 16, no.1, 2006, pp3-27. 5. Luc Sels, etal., “Unravelling the HRM –performance link: Value Creating and cost increasing Effects of Small-Business HRM,” Journal of Management Studies 43,no.2,March,2006,pp.319- 342, 6. Jaap Paauwe and Paul Boselie, “HRM and Perfomance : What’s Next?”, HRM Journal 15, No4, 2005, pp.68-82. 7. AntheaZacharatos et al.,” High-Performance Work Systems and Occupational Safety, “Journal of Applied Psycology90, No.1, 2005, pp.77-93.

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THE EFFECT OF COMPANY CHARACTERISTICS ON CAPITAL STRUCTURE IN INDIA

Mr. P. Veeramuthu, M.Com., M.Phil., B.Ed., PGDCA., Ph.D. Research Scholar, Assistant Professor, PG & Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil Arts Science College, Mailam, Tamil Nadu, India

R. Vinoth, M.Com., PG & Research Department of Commerce, Srimath Sivagnana Balaya Swamigal Tamil Arts Science College, Mailam, Tamil Nadu, India

Introduction Financing is widely regarded as a major challenge for small businesses. Small company investment strategies, particularly those that center on soft, intangible assets such as R&D, are often described as constrained by the operations of debt and equity markets. And yet it is these intangible investments in knowledge that can serve as major catalysts for innovation and growth. Internal and external competitions have increased the business risk of Indian industries during the last decade. Since strategies aimed at to acquire competitive strength require considerable funding, companies need to adopt appropriate financial policies to mobilize risk capital. The Capital structure analysis is a complex set of analysis. Investment decision, financing decisions are the important decision a company should take in the course of its operation. But the financial management should see the importance of total objective of the company. With regard to small and medium scale enterprise unavailability of long term finance is one of major problem they are facing through capital market. Lending relationship is very crucial for small medium scale enterprise because it is mechanism, of assessment and control. The existence of Information asymmetries and opposite interest between lender and borrowers leads to credit rationing. Lack of credit rating facilities, size of the company and concentration of ownership in the hands of entrepreneur will increase the information asymmetries and prevent the SMEs in obtaining better funding facility in the credit market. The key issues relates to the capital structure can be classified into Two; Quantitative and Qualitative. Quantitative include the size, number of employees, total asset and sale revenue. Qualitative include the Business experience, market reputation ownership and control and lending relationship.

SME in Capital Market The SMEs are not accessible to the Capital Market to they have been blocked enter the voluminous opportunities of sources of financing. There is no secondary market for trading their securities people will not prefer to invest in the securities of small and medium scale enterprise. In that case analyzing the capital structure of SME it is fruitful and feasible.

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Liberalization has exposed Indian Small and Medium Enterprises (SMEs) to the twin challenges of growth and competition. Companies are realizing that to survive the onslaught of multi-national companies, they have to modernize existing infrastructure and upgrade technological capabilities to achieve economies of scale. The urgency is visible now, more than ever, as Indian companies are making a beeline to the Chinese market with offers of outsourcing their production needs. Realizing the potential threat to the Indian SME sector, CII on its part had mooted the idea of enhancing internal competitiveness of units through handholding by government and industry associations in areas like manufacturing excellence, total cost management and energy management. In an era of increasing globalization, it implies that Small and Medium Enterprises (SMEs) should focus their efforts on increasing their cash flow capacity through better assets management and achievement of higher exports and ensuring good bank relations, but at the same time, turn to alternative forms of financing. The important feature of financial policy choices is that the choice of debt level, the maturity structure of debt and the types of restrictive covenants included in the indentures of debt are jointly determined as a function of company characteristics and the contracting environment that the company faces.

Statement of the Problem In India few studies have analyzed the relationship between the size of the company and its financial behavior. Size would appear to be an important factor determining the financial behavior of smaller and medium sized companies. The conventional analysis of capital structure states that company determine their leverage level trading off the benefits against the shortcomings that provides debt employment. Under this line of reasoning, emerges the so- called Trade-off theory, which includes fiscal, financial distress and interest conflicts issues.

Significance of the Study Though many research studies have been undertaken in the field of companies’ uniqueness and its capital structure very few studies have been undertaken in order to find the relation between company characteristics and capital structure. Therefore, the present study attempts to analyze the effect of company characteristics on capital structure in the selected SMEs in industry in India.

Scope of the Study The study constitutes an attempt to provide an empirical support to the hypothesized relationship between company characteristics and capital structure.

Objectives of the Study The following are the objectives of the study: 1. To evaluate the trend in capital structure based on characteristics of SMEs under Steel Industry. 2. To analyze the relationship between capital structure and company characteristics of SMEs under Steel Industry. 3. To study the impact of company characteristics on the choice based capital structure with respect to Long-Term Debt, Short-Term Debt and Total Debt.

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Hypotheses of the Study 1  H0 : “Thereis no significant effect of profitability on Long term borrowings of the SMEs under steel sector”. 2  H0 :“Thereis no significant effect of tangibility on Long term borrowings of the SMEs under steel sector”. 3  H0 : “Thereis no significant effect of profitability on short- term borrowings  ofthe SMEs under steel sector”.

Methodology Source of Data The study uses only secondary data, which are collected from CMIE (Centre for Monitoring Indian Economy Private Ltd.,) prowess package.

Sample Design Table Distribution of Sample Units Companies/ Total No. of No. of companies No. of companies %of companies Sample Industry companies listed in NSE listed in BSE listed in BSE units Steel Industry: Finished Steel 162 (79%) 21 (84%) 90 81% 28 Stainless Steel 19 (10%) 2 (8%) 11 10% 06 Ferro Alloys 23 (11%) 2 (8%) 10 09% 04 Total 204 (100%) 25 (100%) 111 100 38

Sample Procedure Originally, the sample for this study has been planned to choose from the list of companies listed in NSE. Since the number of companies listed in the NSE (National Stock Exchange) is lesser in number (26 companies in Steel Industry), the sample of 38 companies in steel industry has been chosen from 111 listed companies in BSE (). The principal aim of the study is to test how far company characteristics affect Small and Medium Enterprise (SME) capital structure, keeping this fact in view the sample has been classified on the basis of the company size. The size of the company was determined by taking into account the total assets of individual companies. The sample so classified under this variable has been divided into 2 groups’ viz., small and medium. According to this classification, companies having total assets of Rs.1000 crore but < Rs.5000 crore is taken as medium.

Sampling Technique Based on the proportion of the companies (Finished steel, Ferro alloys, Stainless steel) listed in the BSE, it was decided to have sample units of 29 from finished steel, 5 from Ferro alloys, 6 from Stainless steel. The sample units are drawn by adopting systematic random sampling technique. Sample interval for sample units (i.e.) N/n for Finished steel companies = 92/29 =3.17 or 3, therefore every 3rd company in the list is included in the sample. Similarly for Stainless steel the sample interval = 11/6= 1.83 or 2, therefore every 2nd company in the list has been

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” included in the sample. And sample interval for Ferro alloys is 9/5= 1.8 or 2. Therefore, every 2nd company in the list has been included in the sample. Altogether sample units of, 29 from finished steel, 6 from stainless steel, and 5 from Ferro alloys, 38 companies have been chosen by Systematic Random Sampling Technique.

Tools Used for Analysis of Data To test the significance of attributes, Multiple Regressions and subset model are used for the study.

Y = a + b1x1 + b2x2 + b3x3 + b4x4 + b5x5 + b6x6 + e Where, Y = is the Dependent Variable.

x1 x2… x6 = is the Explanatory Variable.

b1 b2…. b6= is the Estimated Co-efficient. e = is the Random Error. Y refers to the dependent variable such as LDR, SDR, and TDR relative to Total Assets.  (LTDTA )= Long-Term Debt /Total Assets  (STDTA) = Short-Term Debt / Total Assets  (TDTA) = Total Debt /Total Assets. x1 x2 x3….x6 refers to the explanatory variables concerned, the following are the explanatory variables used:

x1 ETR (Effective Tax Rate) = Taxes / Earnings After Interest and Before Taxes( EAIBT).

x2 NDTS (Non-Debt Tax Shields) = Depreciation /Total Assets.

x3 GO (Growth Opportunities) = Intangible Assets / Total Assets.

x4 AS (Asset Structure) = Tangible Assets / Total Assets.

x5 S(Size) = Natural Logarithms of Total Assets

x6 P(Profitability) or ROA = Earnings Before Interest & Taxes (EBIT) /Total Assets

Period of the Study The data used for the analysis are relating to the selected Steel companies for the period of 10 years on a yearly basis ranging from 2007 to 2016.

Limitations of the Study 1. This type of analysis can control company heterogeneity, and reduce co- linearity among the variables that are contemplated. 2. This technique enables us to eliminate the potential biases in the resulting estimates due to correlation between unobservable individual effects and explanatory variables included in the study; the study is in no exception to limitations. The following are the limitations of the study. 3. Due to shortage of times and resources, the study is limited to ten years data only (from 2007 to 2016). Therefore, a detailed trend covering a lengthy period has not been considered. 4. The study is based on secondary data collected from the CMIE Prowess package. Therefore, the quality of the study depends purely upon the accuracy, reliability and quality of secondary data.

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5. The study is limited to 38 companies of SME in Steel industries which are listed in BSE; therefore, more accuracy in terms of analysis is dependent on the size of the sample units.

Findings of the Study The increase in total debt relative to total assets is mainly due to increase in short-term debt. The movement of total debt during the period under study is less volatile when compared to that of its components for finished steel manufacturing companies. Observation of Co-efficient of variation (CV) values for explanatory variables has clearly shown that the trends in ETR and growth were highly heterogeneous and in profit, the heterogeneity has been moderate. NDTS, Tangibility and size of finished steel manufacturing SMEs have been highly consistent. The short-term of the SM steel companies with steel and iron manufacturing have increased with decline in their growth, tangibility, size and profitability. At the same time total debt of these SM steel companies is significantly increases when there has been a decline in their GROWTH and PROFITABILITY, and increase in TANG and SIZE. Observation of beta coefficients in subset model 2 shows that NDTS and profitability have significant unique negative influence while TANG and SIZE) have significant unique positive influence on Long-term borrowings of the SM steel enterprises with finished steel manufacturing under steel sector.

Conclusion The main purpose of this study is to shed light into the above association. The dependent variables LDR, SDR, and TDR, which represent the capital structure of the company, and the independent variables are Profitability, Tangibility, Size, Growth, Effective Tax Rate, Non-debt Tax Shield, etc., The multiple regression technique and subset model regression have been used to ascertain the best fitted model for predicting the company characteristics and to measure its impact on capital structure decision. From the study, it is found that the capital structure of SMEs is influenced by the company characteristics viz., Profitability, Tangibility, Size and Growth. The regression results show that there is a significant negative effect of profitability on Long Term Borrowings and on Total Debt and it also shows that there is a significant negative effect of growth on Total Debt, whereas, there is an insignificant negative effect of growth in Long-Term Borrowings. However it is found that there is a significant positive effect of Tangibility and Size on Long Term Borrowings and on Total Debt. With respect to Short-Term Borrowings, two variables viz., ‘Size’ and ‘Tangibility’ are with positive sign and negative sign respectively, are found to be statistically insignificant. Also the company characteristics namely profitability and growth influence negatively on Short-Term Borrowings. The Maturity Matching principle of the SMEs may be the cause for the negative impact of tangibility and size towards short-term borrowings as the SMEs finance their fixed assets by Long-Term Borrowings, and current assets with Short-Term Borrowings. The Non-Debt Tax Shield and the Effective Tax Rate do not find any dominance over either Short-Term borrowings or Long-Term Borrowings or Total Debt.

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References 1. Carmen GalveGorriz& Vicente Salas Fumas; “Ownership Structure and Firm Performance: Some empirical evidence from Spain”; Managerial and Decision Economics (Q); Vol.17; No.6; Nov.- Dec.1996. 2. Todd A. Burgman; “An Empirical Examination of Multinational Corporate Capital Structure”; Journal ofInternational Business Studies (Half-yearly); Vol.27; No.3; 3rd Qtr., Sep.1996. 3. Nagaraj.K; “Iron and Steel”; Social and Scientist: Vol.5; Jan-Feb.1997. 4. Dev Prasad, Garry D. Bruton& Andreas G. Merikas; “Long-Run Strategic Capital Structure”; Journal of Financial and Strategic Decisions (3 issue/year); Vol. 10; 1997. 5. Gerald T. Garvey & Gordon Hanka; “Capital Structure and Corporate Control: The Effect of Antitakeover Statutes on Firm Leverage”; The Journal of Finance (Half-yearly); Vol.54; No.2; April.1999. 6. Jose Lopez Gracia& Cristina Aybar Arias; “An Empirical Approach to the Financial Behaviour of Small and Medium Sized Companies”; Small Business Economics; Vol. 14; 2000.

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BRAND TRUST – ITS IMPACT ON CUSTOMER SATISFACTION OF TELEVISION WITH REFERENCE TO CONSUMER OF CHENNAI

S. Lakshmi Assistant Professor, Dept of Commerce Prince Shri Venkateshwara Arts and Science College, Chennai

Abstract Brand Trust is regarded as the important aspect of marketing whenever manufacturer or dealers want to sell their products to consumer. All the marketing activities aims at building strong brands which will result in brand trust and thus they are able to retain the customers in the long run. Its helps the concern in holding the market share at the same time saves the advertisement cost to the maximum. The present study aims at studying the impact of brand trust on the customer satisfaction of television with reference to consumers of Chennai. The data is collected through questionnaire from 650 respondents. The collected data was analysed using spss tools. The findings of the study are that brand trust has a positive impact on the customer satisfaction of television with respect to the consumers of Chennai. Keywords: Brand Trust, Customer Satisfaction, Television.

Introduction Any country be it developed, developing or underdeveloped the customer is the king. Organization can retain customers only when they have trust in the products which they want to buy. If the customers don’t have trust they will be switching from one brand to other brand and it will be difficult for the marketers to retain them and they have to spend heavy amount on advertisement now and then. In the brand equity study one of the key attributes is the brand trust. The customer has to believe a product that it will satisfy the customer needs. It is created by the marketers through advertisement and usage and it takes time to be built. The brand and the brand trust have an influence on the overall performance of the brand. The present study aims at finding the brand trust and its impact on the customer satisfaction of television as there are many players in the field of television. What are all the reasons that build brand trust.

Objectives of the study 1. To study the Television usage in Chennai. 2. To analyze the purpose of using Television in Chennai. 3. To assess the factors influencing Brand Trust of Television in Chennai 4. To find out the level of Brand Trust in Chennai.

Review of Literature Moorman, Zaltman and Deshpande (1992) defined confidence in "Willing to trust the exchange partner who trusts". Morgan and Hunt (1994, p.23) stated that trust was "when the party trusts the partner's reliability and integrity". This explains the perception of exchange partners focusing on establishing trustworthy business relationships. When trust had been established, the relationship between the brand and the customer had the potential to benefit both parties. Trust can be created from an exchange environment where fast food brands provide consistent services to customers through various sales outlets. The consequences of

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” trust Morgan and Hunt (1994) consider trust as a key factor for any long-term relationship. If a person trusts another party, it is likely that he or she will develop some kind of positive behaviour for the other party. Brand loyalty is an important consequence of brand trust to be conceptualized as a behavioural outcome in relation to a brand or actual customer behaviour. Lassar et al. (1995) define trustworthiness as the confidence a consumer places in the firm and the firm’s communications and as to whether the firm’s actions would be in the consumer’s interest. Consumers place high value in the brands that they trust.

Sampling design for the study The sampling is the whole of Chennai region, effort is made to group the region into strata. The grouping is done on the basis of geographical factors. Data are collected from three strata North Chennai, South Chennai and Central Chennai. Stratified random sampling is collected as primary data. The customers from different socio-economic background (gender, marital status, in which they study, etc...) were studied.

Sources of data Primary data was collected and studied and was analyzed. For collecting data, structured questionnaire was constructed and 750 respondents were given questionnaire. Out of it 650 were found to be complete in all respect and were taken for Analysis. Secondary data was collecting using magazine, internet, newspapers etc.

Analysis Tools For understanding the Brand Trust of Televisions 650 customers have been selected. Out of it 120 were found to be complete in all respect were Analyzed using SPSS tools.

Analysis and Interpretation Table 1 Brand Trust Source: Primary Data N Mean SD From the above table, it is found that the This brand is worth trusting 650 3.95 .501 mean score (M=3.95) of the variable - “This This brand delivers the quality as 650 3.82 .666 brand is worth trusting” is more than other promised variables. It is also found that the respondents The confidence on this brand is 650 3.58 .793 always continuous and consistent have more Brand Trust (BT) with respect to the This brand has a good reputation 650 3.75 .625 Television since the mean score of all the This is an honest brand 650 3.72 .452 variables are above 3.5 (70%) out of 5. BRAND TRUST (BT) 650 18.81 2.309

Table 2 Demographic Profile (Sample Size = 650) Source: Primary Data Variables Options Frequencies (%) Gender Male 280 43.10 Female 370 56.90 Age 18 – 30 Years Open ended 72.80 31 - 50 Years Question 22.30 51 - 78 Years (Scale 4.90 Variable) Qualification School Level 121 18.60 Diploma 101 15.50

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UG / PG 311 47.80  The sample consists of a Professional 117 18.00 sizeable preponderance (280, Occupation Salaried Job 253 38.90 Business / Self-employed 112 17.20 43.10%) of male respondents Professional 115 17.70 over female (370, 56.90%) Student 36 5.50 respondents. Home Maker 134 20.60 Monthly Family Less than Rs.50,000 301 46.30  72.80% of the respondents Income (INR) Rs.50,000 – Rs.1,00,000 169 26.00 belong to the age group of 18 - Rs.1,00,001 – Rs.2,00,000 110 16.90 30 years, followed by 22.30% of Above Rs.2,00,000 70 10.80 Marital Status Married 422 64.90 the respondents belong to the Unmarried 228 35.10 age group of 31 - 50 years and Type of Family Joint Family 222 34.20 remaining 4.90% of the Nuclear Family 428 65.80 respondents belong to the age group of 51 - 78 years.  In terms of academic qualifications, it is not surprising that majority (311, 47.80%) of the respondents completed UG/PG degrees followed by School level education with 18.60% (121).  Majority of the respondents are Salaried employees (253, 38.90%) followed by Business/Self-employed with 17.20% (112), Professional (115, 17.70%), Students (36, 5.50%) and Home Maker (134, 20.60%).  In terms of Monthly Family Income, majority of the respondents (301, 46.30%) belongs to the income of less than Rs.50,000 followed by Rs.50,000 – Rs.1,00,000 (169, 26%), Rs.1,00,001 – Rs.2,00,000 (110, 16.90%) and Above Rs.2,00,000 (70, 10.80%).  Majority of the respondents are Married (422, 64.90%) and remaining (228, 35.10%) of the respondents are Unmarried.  In terms of type of family, 65.80% (428) of the respondents are from Nuclear family and rest of them (222, 34.20%) belong to Joint Family.

Table 3 Television (Entertainment Product) (Sample Size = 650) Source: Primary Data Variables Options Frequencies (%)  Majority of the Name of the Brand 285 43.80 respondents used the LG 221 34.00 Television (Home Sony 101 15.50 Appliance), Samsung (285, Videocon 17 2.60 43.80%) followed by LG Others 26 4.00 with 34% (221), Sony (101, Years of Usage 1 – 3 Years Open ended Question 15.80 15.50%), Videocon (2.60%, 4 – 6 Years (Scale Variable) 49.00 17) and other brands (26, 7 – 11 Years 35.20 4%).  In terms of Years of Usage of Television, 15.80% of the respondents used 1 – 3 Years, 49% of them used 4 – 6 Years and 35.20% of them used 7 – 11 Years.

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Findings  It is found that the mean score (M=3.95) of the variable - “This brand is worth trusting” is more than other variables.  The sample consists of a sizeable preponderance (280, 43.10%) of male respondents over female (370, 56.90%) respondents.  Majority of the respondents used the Television (Home Appliance), Samsung (285, 43.80%) followed by LG with 34% (221), Sony (101, 15.50%), Videocon (2.60%, 17) and other brands (26, 4%).

Suggestion  The marketers can add more features to make the Television more usable  Safety features can be prioritized and child safety features can be added.  Multi utility can be an added advantage.

Conclusion If marketing specialists understand these factors and take into account that they can sell their products profitably in the market. This industry is a perennial industry because milling is a daily job. The demand is always there. So, I can conclude that if manufacturers and marketing specialists focus on a loyalty factor. They can be in the market and sell better.

References 1. Moorman, C., Zaltman G., Deshpande, R. (1992) Relationships between providers and users of market research: The dynamics of trust within and between organizations. J. Mark. Res., 29: 314–328. 2. Morgan, R. M., & Hunt, S. D. (1994). The commitment trust theory of relationship marketing. Journal of Marketing, 58(3), 20–39. 3. Lassar, Walfried, Banwari Mittal, & Sharma Arun (1995) “Measuring Customer-Based Brand Equity”. Journal of Consumer Marketing, 12 (4), 11-19.

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STRUCTURAL CHANGE IN THE ENVIRONMENT DUE TO IMPACT OF TANNERY EFFLUENT DISPOSAL WITH SPECIAL REFERENCE TO AMBUR TALUK, , TAMIL NADU

M. Nirmalkumar, MA., M.Phil., Ph.D. Research Scholar, Research and Development Centre Bharathiar University,

Dr. T. Balasaravanan Associate Professor and Head of Economics S.I.V.E.T .College, Gowrivakkam, Chennai

Abstract Indian Leather Industry is 6th largest in the world. The leather industry is one of the major established manufacturing industries in the modern as well as traditional sector which has massive influence on our economy. The study was carried out to assess the awareness of people on the impact of tannery waste disposal on environmental pollution of selected areas in Ambur Taluk. Data were collected by interviewing 300 peoples randomly of which 90 were labour, 60 livestock farmers, 60 fishermen and 90 were general public in the study areas. Data were collected on age, education level, occupation, type of waste, colour of waste, waste disposal time, environmental effect, human diseases, environmental pollution awareness, livestock production and fisheries production. The findings revealed that about 34% respondents were illiterate. Both solid and liquid waste (56%) was come out from the tannery of which half of them were black in colour. About 45% respondents were reported that the most environmental effect was bad smell to the surrounding areas. Survey result also showed different health problems such as skin diseases, itch, rash, cough, fever, diarrhea, headache, asthma, dizziness etc caused due to unplanned tannery waste disposal. The highest proportion (38%) of respondents had low environmental pollution awareness due to their illiteracy. Livestock and poultry were died due to tannery wastes which were indicated by 59% of respondents. The livestock and fish production was low, reported by 48% of respondents. Education, occupation and type of waste had a significantly positive relationship where colour of waste had no relationship with their environmental pollution awareness. The results of this study will be helpful to create people’s awareness on environmental pollution and their impact by tannery waste disposal. Keywords: Environmental impact, Tannery waste disposal, Awareness.

Introduction Leather industry plays an important role in Indian Economy due to its large potential for employment, growth and export. At the same time, it poses serious environmental threats by discharging liquid effluents and solid wastes directly into surrounding low lying areas without proper treatment. Among all the industrial wastes tannery effluents are ranked as the highest pollutants (Azomet al., 2012). Leather is manufactured by adopting a number of steps which involve about 170 types of chemicals that includes sodium chloride, lime, sodium sulphate, fat liquor ammonia, sulphuric acid, chromium sulphate and a number of dyes. About 35 litters of water are used to process 1 kg of finished leather. After every step, waste is generated and it contributes to the final effluent. These wastes contain high BOD (Biological Oxygen Demand), COD (Carbon Oxygen Demand), High Total Dissolved Solids, Chrome salts and residual dyes. Palar river Basin, Tamil Nadu, is a hub of more than 939 tannery industries. Industrial wastes are major sources of pollution in all environments which require onsite treatment before discharge into sewage system (Emongoret al., 2005). In Ambur Taluk, there is a progressive increase in

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” industrial wastes and due to rapid industrialization such waste products have been causing severe contamination of air, water and soil and ultimately pollutes the entire environment. Ambur Taluk is situated mainly in the PalarRiver. The rivers are very much polluted by the tannery wastes. During last decade the livestock production and fish culture have been seriously affecting by the industrial waste specially tannery waste (BBS, 2009). For this reason a survey work is to be done. The present study aims at investigating the impact of tannery waste disposal on water, soil and agricultural productivity.

Objectives of the Study  To explore the present situation of the tannery surrounding environment.  To characterize the tannery effluents.  To promote environmental awareness of population.

Hypotheses The present study following null hypotheses ware framed.  There is no situation relationship between educational level of the respondent and their environmental pollution awareness.  There is no situation relationship between occupation of the respondent and their environmental pollution awareness.  There is no situation between type of waste and their environmental pollution awareness.  There is no situation between colour of waste and their environmental pollution awareness.

Research Methodology The study was carriedout in selected villages of Ambur Taluk such as Somalapuram, Periavariam, Sathambakkam and Thuthipattu. The selected areas of Ambur Taluk were purposively selected because 90% of total tannery wastes are disposed on surrounding areas of the PalarRiver. Primary data were used for this study. Sample survey was carried out for generating the required data. Secondary datawere collected through desk research of online resources, research papers, conference documents, and publications. Data from Council from leather export have also been used. Annual Report on MSMEs, Annual Report of Ministry of Commerce and Industry, various Annual Reports of State Financial Corporation and various financial institutions have been used. All data have been compiled from three types of sources: published documents and reports, the World Wide Web and statistical agencies. Simple statistical tools have been used for analyzing data.

Result and discussion Three hundred (300) respondents such aslabour, fisherman, livestock farmer, local people fromSomalapuram, Periavariam, Sathambakkam and Thuthipattuin AmburTaluk were surveyed to find their perception about the impact of tannery waste on environmental pollution.

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Table 1 Distribution of Respondents by age group Age Group Frequency of Respondents % Total Mean SD 18-30 63 21 31-50 210 70 40.56 12.33 Above 50 27 9 Total 300 100

Table 2 Distribution of Respondents according to education level Education Level Frequency of Respondents % Total Mean SD Illiterate 102 34 Primary Level 93 31 Secondary Level 51 17 2.61 1.03 Higher Level 56 18 Total 300 100

Table 3 Distribution of respondents according to their occupation Occupation Frequency of Respondents % Total Mean SD Fisherman 60 20 Livestock Farmer 60 20 Labour of tannery 90 30 Student 24 8 House wife 15 5 3.04 1.46 Others 51 17 Total 300 100

Different Characteristics of Tannery Effluents Types of waste About 15% solid waste comes out from studied tanneries which are almost half of liquid waste (29%). According to respondent’s opinion, maximum amount of wastes was the mixture of both solid and liquid materials. In the tanning process many chemicals such as Chromium oxide, ammonium sulfate, formic acid, sulfuric acid, sodium chloride etc are used which causes solid and liquid wastes (Gain, 2002). İn the processing of raw hide and skin the sulphuric acid and salt are used and then it was treated with the solutions of chromium salts. In the tannery chromium, HCl, Sulphuric acid, Formic acid, Caustic soda, Caustic potash, Soda ash, Sodium arsenite, Arsenic sulphite etc are used for different tanning process such as soaking, liming, deliming, tanning etc. (Khatun and Huq, 1994). At the end of every process the chemicals are washed by water which causes liquid waste. The major solid wastes generated by the tanneries are dusted curing salt, wet trimmings, dry trimmings, wet shaving, buffing, raw materials packing etc.

Colour of Waste Survey results showed that the black colour was discharged throughout the tannery was 47% which was higher than the other colours. Mixed colour waste discharge from tanneries was 39% which is second highest amount. Red and Blue colour waste were indicated by 7% of respondents that very small relatively black and mixed. A research group (Nanda and Tiwari,

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1999) observed that the quality of water deteriorates significantly after the discharge of industrial effluents into the river. Chrome tanning is the most common type of tanning where maximum amount of chromium is used. In the survey of blacksmith institute it was found that 20 percent large number of chemical is absorbed by leather others turn to the waste (Gain, 2002). The tannery is used different chemicals in tanning process. In a tannery industry 40 types of chemicals are used. At the end of leather processing those chemicals are washed. After washing these chemicals it turn into different colours. The waste comes out the tannery and runs through the drain and goes into the river and nearby ponds. The waste contain, high amount of chemicals and for this reason the wastes are of many colours. So it showed that the maximum type of waste colour is black. The blackish colour tannery waste which discharged from the tannery is shown in the Fig. 1.

Fig. 1 Tannery wastes run out from the unplanned tannery industry. Arrow indicates black waste discharge from the tannery Environmental Effect by Tannery Waste Survey result showed that the most environmental effect emanates bad smell to the surrounding area, indicated by nearly half of the total respondents (45%) and the secondly, nearly one third of respondents opinion that (32%) there is scarcity of potable waters. Due to lack of proper management facilities the tannery wastes create environmental pollution day by day (Azomet al., 2012). Pollution of environment is one of the most horrible ecological crisis to which we are subjected today. About 95% of the tannery industries have been built in unplanned way at the congested places of study area for the past fifty years.

Human Diseases It was found that the one third portion (33%) of the respondents caused skin diseases by diluting of waste into water and soil. Huge amounts of chemicals flow off the tannery floor, into open gutters in those areas streets. Over 3,500 workers in the tanneries of Somalapuram, Periavariam, Sathambakkam and Thuthipattu villagesin Ambur Taluksuffer from gastrointestinal, dermatological, and other diseases, and 90% of this population dies before the age of 50 (Human Rights Watch, 2012). The researcher observed that the tannery labors did not wear any gloves, apron and special shoes rather than they work in bare feet. The tannery wastes were disposed in unplanned way. These wastes were fall in the nearby river and the slums people use these water which causes various diseases to them (Fig. 2). These wastes covered the surrounding area which creates foul smelling and damaged human health and it finally affects environment.

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Fig. 2: Showing unplanned dumping of the solid and liquid tannery wastes

Environmental Pollution Awareness The seizable proportion (38%) of respondents had low environmental pollution awareness where 27% of the respondents had no knowledge on environmental pollution. The data indicated that 17% of the respondents in the study area comprised of medium awareness category about environmental pollution. About 18% of the respondents showed that they have awareness high on environmental pollution. The maximum number of respondents were live in the nearby tanneries. The resident of the villages people were used the dirty water for various purposes.

Effect on livestock sector Survey result showed the list of the effect of livestock sector that was reported by the respondents. It was found that the half of the portion of respondents (44%) are facing water problem by spreading of waste in water and soil, compared to mortality, movement problem and fodder toxicity during the tannery waste (Table 4)

Table 4 Distribution of Respondents according to the Effect of Livestock Sector Effect of Livestock Sector Frequency of Respondents % Total Mean SD Fodder toxicity 24 8 Movement Problem 30 10 Water Problem 132 44 3.07 1.09 Mortality 99 33 All 15 5 Total 300 100

Effect on livestock production The effect of livestock production was low reported by half of the respondents (48%). Secondly, the effect of livestock production was very low which was indicated by 45%. So, the tannery waste was harmful to livestock production in study area. In the survey area, the livestock farm is decreasing drastically due to the disposal of tannery wastes. The solid wastes are dumped in open places (Fig. 2). The liquid wastes are discharged in unplanned way. The livestock eat these wastes and attack by various diseases.

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Effect on fisheries sector It was found that more than half portion of respondents (58%) said that the effect of fisheries sector was mortality compared to stunted growth (10%) and both effect (32%) by spreading of waste in water. The direct discharge of these wastes has contaminated the ground and surface water with dangerously high concentrations of chromium, as well as cadmium, arsenic, and lead. The contamination of rivers also allows these pollutants to accumulate in common fish and shellfish species, which are used as local food sources (Huq, 1990).The polluted water is harmful for aquatic life reported in (Zahir and Ahmeduzzaman, 2012). Due to tannery waste the aquatic resources were adversely affected and fish production was drastically reduced. The wastes which contain high amount of chemical especially chromium are fall in the river which is very much harmful to fish and aquatic plants (Breckle and Khale, 1992). The fishes were eating the disposed waste and died. In the survey it was formed that maximum bad effect occurred by tannery waste in fisheries sector is fish mortality.

Effect on fisheries production The effect of fisheries production was very low and that was 50%. Secondly the effect of fisheries production was low which reported by 43% and others are the medium effect which reported by 7% respondents. The tannery wastes were harmful to fisheries production. In survey area the fish was decreasing day by day due to the unplanned disposal of tannery wastes. The liquid wastes were discharged into the open canal followed by river without any treatment. The fishes were eating these wastes. The hatchery farmer’s objected that in the rainy season the tannery waste comes in this hatchery and fishes are died. So the fish production is adversely hampered due to tannery wastes. Effect on the agricultural production The tannery waste affected the agricultural production very much. In survey work, the respondents reported during interview that the agricultural land which is now unsuitable for agricultural production. Majority of the respondents moved that more than 50% of lands were not suitable for cultivation due to tanneries effluents over the 10 years.

Relationship between the Selected Characteristics of the Respondents and Environmental Pollution Awareness Table 5: Relationship between Environmental Pollution Awareness and other selected Characteristics (N=300) Independent Computed Value of Dependent Variable Level of Significant (%) Variable ‘r’ Environmental Pollution Education 0.90*** 0.001 Awareness Occupation 0.786*** 0.001 Waste type 0.960*** 0.001 Waste colour 0.101NS NS *** = Correlation is significant at 0.001% level of probability NS = Not significant

Education level and Environmental Pollution Awareness The relationship between education level of the respondents and their environmental pollution awareness was examined by testing the null hypothesis: “there is no relationship between education level of the respondents and their environmental pollution awareness”. The

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computed value of the coefficient of correlation between education level and environmental pollution awareness was found to be 0.90 shown in Table 5. Based on the coefficient value, the following observations were made, like- a) the relationship showed a positive trend, b) a significant relationship was found between two variables at 0.001 level of probability. The educational qualification is highly significant on environmental pollution awareness. The illiterate person had no environmental pollution awareness. Based on the above findings, the null hypothesis was rejected.

Occupation and Environmental Pollution Awareness The relationship between occupation of the respondents and their environmental pollution awareness was examined by testing the null hypothesis: “there is no relationship between occupation of the respondents and their environmental pollution awareness”. The computed value of the coefficient of correlation between education and environmental pollution awareness was found to be 0.786 shown in table 6. Based on the coefficient value, the following observations were made, like- a) the relationship showed a positive trend, b) a significant relationship was found between two variables at 0.001 level of probability. The occupation and environmental pollution awareness is highly significant. Based on the above findings, the null hypothesis was rejected.

Type of waste and Environmental Pollution Awareness The relationship between type of waste of the respondents and their environmental pollution awareness was examined by testing the null hypothesis: “there is no relationship between type of waste of the respondents and their environmental pollution awareness”. The computed value of the coefficient of correlation between type of waste and environmental pollution awareness was found to be 0.96. Based on the coefficient value, the following observations were made, like- a) the relationship showed a positive trend, b) a significant relationship was found between two variables at 0.001 level of probability. İn tanning process most of the chemicals used which creates solid and liquid waste (Breckle and Khale, 1992). In this survey, it was found positive relationship. Based on the above findings, the null hypothesis was rejected.

Colour of waste and Environmental Pollution Awareness The relationship between colour of waste of the respondents and their environmental pollution awareness was examined by testing the null hypothesis: “there is no relationship between colour of waste of the respondents and their environmental pollution awareness”. The computed value of the coefficient of correlation between colour of waste and environmental pollution awareness was found to be 0.101 as shown in Table 5. Based on the coefficient value, the following observations were made, such as- a) the relationship showed a positive trend, and b) insignificant relationship was found between two variables. Based on the above findings, the null hypothesis was accepted.

Conclusion The study describes the relationship between environmental pollution awareness and others parameters like age, education level, profession, agricultural production etc. According to respondent’s opinion maximum amount of wastes was the mixture of both solid and liquid materials. The most environmental effect was bad smell to the surrounding area, and the

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” secondly scarcity of fresh water. Different types of health problems occurred in the study area according to respondent’s opinion. Highest proportion of respondents had low environmental pollution awareness where one-third of the respondents had no knowledge in environmental pollution. Tannery waste affects the livestock sector. It was found that the highest portion of respondents faced in difficulty related to water problem compared to mortality, fodder toxicity. Various livestock’s diseases occurred by tannery wastes. Tannery wastes are hampering for livestock production. The high portion of respondents indicates the livestock production is low. The tannery waste causes the harmful effect on fisheries sector also. Fish production is decreasing day by day due to unplanned disposal of tannery wastes. Correlation analysis indicates that education, occupation and type of waste used by the respondents had significant positive relationship with their environmental pollution awareness. In the study it is demonstrated that mostly all the stages of tannery processing, individually and collectively impacts negatively to the environment. Results revealed that tanning industry wastes poses serious threat to environmental whichpotable air, water and soil pollution, human, fish and all livestock. It is expected that the research findings would be applicable in general to the peoples as well as labour of tannery industry, respondents who lives nearby the tanner industry, livestock farmer and fisherman. In this context, the present study helps the planners, policy makers to event a stringent law to curb the deteriorating environment with a use to save to earth for the future generation.

References 1. Azom, M.R.; Mahmud, K.; Yahya, S.M.; Sontu, A. and Himon, S.B. 2012. Environmental Impact Assessment of Tanneries: A case study of Hazaribagh. Bangladesh Journal of environmental impact, 3: 152-156. 2. Breckle, S.W. and Khale, H. 1992. Effect of toxic heavy metals (Cd, Pb) on growth and mineral nutrition of beech (Fagussylvatica L.). Vegetatio, 101: 43-53. 3. Human, R. W. 2012. Toxic Tanneries: The Health Repercussions of Bangladesh’s Hazaribagh Leather, October. Pp. 6-14 & 20-55. 4. Khatun, H. and Huq, M. 1994. Paribeshdusholleyhazaribaghelkarchamrashilpa (Leather industries in the Hazaribagh area and environmental pollution). BhugolePatrika (Geography Journal), 13: 8- 19. 5. Nanda, S.N. and Tiwari, T.N. 1999. Effect of discharge of industrial effluents on the quality of river Brahmani at Rourkela. Indian J. Environ. prot., 19: 52-55. 6. UNIDO (United Nations Industrial Development Organization). 2005. Cost of Tanned Waste Treatment. 15th Session of the Leather and Leather Products Industry Panel. Leon. Mexicom, 17-18. 7. Emongor, V.; Nkegbe, E.; Kealotswe, B.; Koorapetse, I.; Sankwasa, S. and Keikanetswe, S. 2005. Pollution Indicators in Gaborone Industrial Effluent. Journal of Applied Sciences, 5: 147- 150. 8. Zahir, H.; Ahmeduzzaman, M. 2012. A case study on the impact of leather industries on the ground water aquifer in Bangladesh. International Journal of Civil & Environmental Engineering IJCEE-IJENS, 12: 52-54. 9. www.leatherindia.org. 10. www.aishtma.com 11. www.clri.org

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EXPLORING OF EFFECTIVE COMMUNICATION: SOCIAL PERSPECTIVES

T. Sivakumar, MA., M.Phil., B.Ed., Assistant professor in English, SSBSTAS College, Mailam

A. Kanimozhi, MA., M.Phil., B.Ed., Assistant professor in English, SSBSTAS College, Mailam

Abstract The purpose of this paper is to confess and discuss the significance of effective communication during the process of managing and changing an organization. The Effective communication actasan advantage of a leader to lead effectively. In order to develop communication skills in relation with the teaching process we must identify the future needs. Communication skills play a vital role in the life of professionals. Interaction between teachers and students can contribute to effective communication in the classroom or may be the source of problematic situations. Also, the various motives and benefits of effective communication are discussed. It offers a change communication model which identifies indifferent variables facilitating of effective communication. Also, it highlights the aspects of communication which has proven to be useful for successful in leadership, business purposeand Teaching process. Keywords: Effective communication, Leadership, Business purpose, Teaching Process

Introduction The world communication has been derived from the Latin word “communis”, which means common. Communication, therefore, refers to the sharing of ideas, facts, opinions, information and understanding. It is the transfer or transmission of some information and understanding from one person to another. Although the word “communication” is used often, there is no consensus amongst communication experts regarding its definition. In general, it is defined as the process by which information is exchanged between individuals. The process uses written messages, spoken words and gestures. Communication can be defined as process of transmitting information, thoughts, opinions, messages, facts, ideas or emotions and understanding from one person, place or things to another person, place or thing. Organizational Behaviour seeks to examine the impact of communication on the behaviour of employees within organizations.

Literature Review Communication has been widely accepted by scholars and academies as the life hood of an organization because communication is needed for exchanging information, exchanging opinions, making plans and proposals, reaching agreement, executing decisions, sending and fulfilling orders and conducting sales (Blalock, 2005; Alyssa, 2006;Rotler, 2006; amongst others). When communication stops, organized activity ceases to exist, and individual uncoordinated activities return in an organization. So, organization in an organization is a virtual as the blood of life.

Effective communication Effective communication is about more than just exchanging information. It's about understanding the emotion and intentions behind the information. As well as being able to

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” clearly convey a message, you need to also listen in a way that gains the full meaning of what’s being said and makes the other person feel heard and understood. More than just the words you use, effective communication combines a set of 4 skills: 1. Engaged listening 2. Nonverbal communication 3. Managing stress in the moment 4. Asserting yourself in a respectful way While these are learned skills, communication is more effective when it becomes spontaneous rather than formulaic. A speech that is read, for example, rarely has the same impact as a speech that’s delivered (or appears to be delivered) spontaneously. Of course, it takes time and effort to develop these skills. The more effort and practice you put in, the more instinctive and effective your communication skills will become.

Function of Effective Communication in Leadership: The importance of communication during intended change has been empirically demonstrated and commonly agreed among practitioners. The empirical picture appeared indicated that organizational change and communication process are inextricably related processes (Lewis, 1999). Recent studies about communication show that communication has positive correlation with many organizational outputs like organizational commitment, performance, organizational citizenship behaviours, and job satisfaction. In contrast communication failure may cause functionless results like stress, job dissatisfaction, low trust, decrease in organizational commitment, severance intention, and absence (Bastien, 1987; Malmelin, 2007) and this can affect organization’s efficiency negatively (Zhang & Agarwal, 2009). Communication during organizational change reduces resistance to change. When resistance to change levels is low within an organization, the change-effort turns out to be more productive. The change plan is dependent of capacity of the organization to change the individual performance of each employee (Goodman & Dean, 1982; Robertson et al., 1993, Tannenbaum, 1971). Since organizational change introduces variation of tasks given to individual employees, transmission of information to these employees on future change is an essential and integrative part of the change strategies. Effective and accurate communication act as an important factor to grow as an efficient and successful leader or manager. To achieve professional success managers must be effective and convincing communicators. It is important that managers and their teams must learn the how to communicate perfectly as this will not only help teams to complete their projects successfully, but also enable organizations to achieve success and growth (Lee Froschheiser). According to many researchers, leader is one who has an ability to take charge, direct, encourage, or stimulate others. They have an attitude to convince others and to make them follow the goals or the participles defined by them. They are results oriented hence, well trained and expert in controlling difficult to difficult conditions and help to enhance the outputs of teams working with him.

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Function of Effective Communication in English for Business Purpose (EBP) English for Business Purposes (EBP), also known as Business English, became an independent area of study in the late eighties and early nineties, primarily due to the globalization of trade and commerce, which made it necessary for business people to move out of their home grounds and operate across territorial, linguistic, and cultural as well as socio-political boundaries. This new business environment achieved further incentive through the massive influx of multimedia that made significant inroads into their traditional business world, with the result that they found themselves operating in a vibrant international marketplace, which was very different from their more traditional home base. As Jackson(2007: 10) Fig: A Conceptual Model for Effective Leadership Communication points out, until recently computer-mediated communication was considered a subfield of business communication; however, the blending of multimedia in the traditional business environment is undermining this distinction, as mediated communication ‘is infused into nearly any business communication context, perhaps even coming to dominate certain areas such as public relations’. This also brought the predominantly American business communication research tradition in close contact with the EBP tradition, which was typically British and European (Dudley-Evans & St John 1998; Bargiela-Chiappini, Nickerson & Planken 2007; Belcher 2009). In this context, it is interesting to note that Rogers (1998, 2001), who has a background in management studies, in her discussion of national agendas in Business Communication, identified at least five key concerns. Firstly, she felt that teaching and research in Business Communication must go hand-in- hand, which has also been one of the main concerns in EBP. Secondly, she found that to enhance business practice, research must centre on authentic texts, which has also been a consistent argument in EBP. The third concern she expressed was that research must be multidisciplinary, an issue that has been given increasing attention in EBP, as discussed above. The fourth concern she mentioned was the need to take into account research in cross-cultural communications and intercultural negotiations, which, once again, has been taken up seriously in EBP research and practice. And, finally, Rogers concluded that language learning, linguistic analyses, and discourse patterns are important areas for research and investigation, areas that have always been at the very core of any EBP programme design exercise. In a subsequent study, Rogers (2000) also pointed out that in text-based genre analyses there is a strong tendency to conceptualize communicative purposes in terms of the strategies of the speakers or writers, and argued that such purposes cannot be fully understood without some understanding of how these purposes were interpreted by members of the specialist community, for which she recommended user-based analyses. Rogers thus extended the boundaries of genre analysis to take it beyond the text to the context and audience response, looking for the relevance of user-based analytical tools to analyze a small corpus of Representations in the context of earning announcements. It is hardly surprising then that in much of Rogers’ work we find a fine integration of not simply the two strands of Business Communication, that is EBP and Professional Communication, but also that of genre analysis.

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The effective communication in Teaching The theoretical framework is based on current literature review and recent studies of communication and motivation (Guerrero & Floyd, 2006; Kenneth, 2007; Frith, 2009; Norliza, 2010; Panisoara & Panisoara, 2012;Lambrechts et al., 2013; Alberto, 2013; Domenech & Gomez, 2014; Jurik et al., 2014). Communication in classrooms is more complex and unpredictable than in many other situations. Communication style is defined as the set of speech feature characteristics of a person in the act of communication. Style means specific ways of receiving the message, personal ways of interpreting the messages; specific ways of expressing the response, feedback. Communication style is an indicator of how a person structured world of social relations. Second communication style is an indicator of how to interpret the information and transform that information into action behaviour in social judgments. Also very important is “the combination of proper styles in context, not reducing to a single style” (Panisoara, 2010). Based on the literature and reviewing various studies about the profile university teaching staff, the qualities expressed by the research participants were grouped into eight dimensions, among which we find the relational competences - dialog with students, tutoring activities etc. (Duta, Panisoara & Panisoara, 2014). How effective we are as teachers has a great deal to do with how we communicate. We communicate ideas, information and expectations in a variety of ways – through speaking, through gestures and other body language, and through the written word, for example. We need to be aware of how we communicate because: communicating effectively can help instructors have a “presence” in the classroom that motivates students and facilitates learning; we may send unintentional messages if we are unaware of things such as our body language; new technologies present new opportunities for communicating with students. Based on the of literature review (Norliza et al., 2010) and according to Kenneth (2007), without communication, the teaching and learning process will not take place. Therefore, teachers with good communication skills will create a more successful teaching and learning ambience for the students. On the other hand, someone with great communication skills has the potential to influence others and effective communication strategies will lead to success (Guerrero & Floyd, 2006).For teacher, very important to guide students in their learning process, this can be done using three steps in the evaluation process (Sluijsmans, 2008, in Lambrechts et al., 2013): feed-up: give examples of what is expected during the evaluation; make evaluation criteria explicit for the students, be transparent about the assessment; feed- back: give sufficient feedback to the students, allowing them to learn from their evaluation as much as possible; feed-forward: give the students input on how to go further in their learning process. In this model of communication next to the message is the channel which the message will pass through. It is often through the airwaves. The channel can be correspondence books, letters, post, radio, television, instruction package and some form of electrical or electronic devices. The final stage of third model is the receive or the destination This communication model is also known as SMCR -SENDER-MESSAGE-CHANNEL and RECIEVER.

Barriers to Effective Communication The following among others are some of the things thataffect effective communication.

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1. Lack of proper planning: inadequate preparation affects effectiveness of presenting and transmitting information. Lack of planning, arises from inadequate thinking, lack of sound objectives, vague words, selecting inappropriate media, etc. 2. Organization Barriers: Faulty organization structure such as lack of clarity of responsibilities and authority delegated, too wide spans of control and too long chains of command cause communication breakdown. 3. Semantic Barriers: These occur when words are understood and interpreted differently by sender and receiver. This affects the achievement of commonness of thought in communication. 4. Technical jargon: Using words or symbols that are peculiar to new fields such as ICT with recipients who have different educational and social background may cause misunderstanding of message. 5. Environmental Barriers: Symbols and innocent remarks may be given different meanings in abnormal environment. 6. Information overload: This happens when a person receives too much information within a limited time.

Remedies for Communication Barriers a. Adequate preparation by senders will help in determining the purpose of the message. b. The parties involved (both sender and receiver) should use similar and familiar symbols and language to achieve effective communication. c. Organization should manage the amount of information that will reach one person at a period of time. d. Management should have a clearly defined organization chart with a short chains of command and spans of control. e. Messages should be well constructed and encoded. f. There must be adequate training of employees to acquire effective business communication skills. g. An appropriate channel should be used to convey messages.

Conclusion The effective communication has identified that the role played by communication during Importance in the teaching level, leadership and business organization is essential for successful changing the management. The main goal of this paper to determine the perception of teachers / students on the needs of developing communication skills that underlie the activities of teaching and learning (Muste, 2012).Greater attention should be paid to the communication as the element of organisational behaviour because of the growing changes within organisations which face the leadership with new challenges and opportunities for testing the different organizational behaviour concept modes. There has also been are view of work done in Business Communication...Students should have the aim to develop all the abilities and skills which required in business world to make them successful. If we neglect the importance of communication skills, our students never fulfil the expectations of business world.

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”Communication is a skill that you can learn. It’s like riding a bicycle or typing. If you’re willing to work at it, you can rapidly improve the quality of every part of your life” (Brian Tracy).

References 1. Anthony, L., (2004), “Effective Communication &Leadership”, [Online] Available: http://smallbusiness.chron.com/effectivecommunication-leadership-5090.html 2. Alexander, M., (2015), “Communication Skills of Effective Project Leaders”. [Online] Available: http://www.cio.com/article/2882199/projectmanagement/11 communicationskills-of-effective-projectleaders.html. 3. Aon, (2015), “Ten Principles for Leadership Communication”. [Online] Available: http://www.aon.com/humancapitalconsulting/thoughtleadership/leadership/article_leaders hip_communication.jsp. 4. Charles, M. (1996). Business communications: Interdependence between discourse and the business relationship. English for Specific Purposes 15, 19–36. 5. Charles, M. (2007). Language matters in global communication. Journal of Business Communication 44.3, 260–282. 6. Sollier, Pierre (2005). Listening for Wellness: An Introduction to the Tomatis Method. The Mozart Center Press Evertson, 7. Weinstein (2011) – Handbook of classroom management, Routledge, New York

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IMPACT OF AGRICULTURE ON INDIAN ECONOMY

Dr. V. Ukkaravel Head, PG & Research Department of Commerce Sri Vinayaga College of Arts & Science –Uiundurpet

Dr. M. Vetrivel Assistant Professor, PG& Research Department of Commerce Sri Vinayaga College of Arts & Science –Uiundurpet

Abstract Agricultural sector is the mainstay of the rural Indian economy around which socio-economic privileges and deprivations revolves and any change in it’s structure is likely have a corresponding impact on the existing pattern of social equity. India is the seventh largest country in geographical level and second largest country in population wise and twelfth largest country in economic wise. The is as diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a major component of the Indian economy, more than 75% of our people have their live hood as agriculture and agriculture oriented works. Mahatma Gandhi said “Indian economy lives in rural villages”, and many of the industries getting their raw material from agriculture sector. We must adopt all possible methods to improve our agriculture and raise its productivity. The natural factors militating against the raising of agricultural productivity must be overcome. Ample irrigation facilities must be provided through the extension of major and minor irrigation works. Liberal supplies of insecticides should be distributed among the farmers free or at very cheap rates. Agricultural Sector of Indian Economy is one of the most significant part of India. Keywords: GDP. Agriculture Sector, Indian Agriculture, Indian Economy.

Introductions The importance of agriculture in the economic development of a country is undebtable. In the words of Johnston and Mellor, "certain aspects of agriculture's role appear to have a high degree of generality because of special features that characterize the agricultural sector during the course of development”. But the contribution of agriculture in the economic development varies at different stages in different countries. This was recognized by many economists at various periods of economic thought. For instance in practice the overall rate of growth achievable in third World countries depends primarily on what happens to its agriculture. In the typical African or Asian economy agriculture produces something like 50 per cent of Gross Domestic product (G.D.P.) while services account for 35 per cent of it and industry for only 15 per cent. Thus, the predominance of agriculture sector rather than manufacture sector becomes main determinant of growth of economy. An attempt is made in this chapter, not only to examine the importance of agriculture in economic development but also to depict an outline of theoretical models regarding agricultural development and economic development.

Nature and Significance of Agriculture is the oldest industry in the World and the largest even today. The major part of the population of the World is dependent upon it for a living it’s contribution to economic development of a country is significant. Economic development may be defined as transformation of an economy which is predominantly agricultural and traditional into one of

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” largely industrial and modern. In the former, agricultural and non-agricultural sectors remain separate presenting economic dualism, while in the latter they get integrated. The role and functions of agricultural development have figured prominently in the theories of development, particularly since the Second World War. Most of the modern developed economies have achieved development prior to World War I. In the early nineteenth century, economists and policy makers, did not devote much attention to the question whether agricultural development should precede Industrial development or should be followed by it. Only since World War II importance was given to the role of agriculture in the process of economic development.

Contributions to Economic Development Economically backward countries must often buy capital goods and technical know-how from present advanced countries. If agricultural products are large enough to build exportable surplus’ it will earn needed foreign exchange to pay for imports of essential equipment technical know-how and industrial raw material. “It is hardly a surprise that in the initial stages of growth of many presently developed countries”, observes Simon Kuznets “Agriculture was a major source of exports and that the resulting command over the resources of the more developed countries played a strategic role in facilitating modern economic growth”.

Importance of agriculture in Indian Economy Agriculture is a basic and important occupation as it provides not only food-stuff but also essential raw materials of industry. It is the oldest business in the world and nearly two-thirds of the population of the world is dependent on agriculture directly or indirectly for its livelihood. In India, agriculture is the backbone of the economy. Nearly 50 per cent of the national income of India is derived from agriculture. Following are the importance of Agriculture in our Indian Economy.  Source of Livelihood  Major Component of National Income  Supplier of Food  Sustenance to Industry  Commercial Importance source of Government Revenue

Causes for low Agricultural Productivity The problem of low agricultural productivity in India is a very complex problem and it cannot be attributed to any single cause. On the other hand, it is the result of the operation of a number of caused operating singly or in combination. The factors that retard the growth of agricultural production in India are: a. Natural Factors b. Techno-economic Factors c. Socio-economic Factors

Role of Agriculture in Indian Economy 1. Share in National Income 2. Largest Employment Providing Sector

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3. Contribution to Capital formation 4. Providing Raw Material to industries 5. Market for Industrial Products

Importance in international trade 1. Share in national income 2. Source of employment 3. Provision of food grains 4. Supply of raw materials to industrial sector 5. Market for industrial product 6. Earner of foreign exchange 7. Significance for trade and transport 8. Source of revenue for the government

Remedies We must adopt all possible methods to improve our agriculture and raise its productivity. The natural factors militating against the raising of agricultural productivity must be overcome. Ample irrigation facilities must be provided through the extension of major and minor irrigation works. Extensive flood control measure should be adopted to prevent havoc and devastation caused by the ever-recurring floods. Liberal supplies of insecticides should be distributed among the famers free or at very cheap rates. Agricultural techniques must be improved fertilizers and manures should be made available in ample quantity all over the countryside. The possibility of the land lying fallow should be minimized by means of scientific rotation of crops and careful crop planning. Improved varieties of seeds should be supplied in adequate quantities at the village stores. Economic factor affecting agricultural productivity must be made more favourable so that agriculture becomes more remunerative. Farm organization and land management must be improved. Surplus labour must be withdrawn from agriculture absorbed in the non-agricultural sector. The vicious circle of poverty affecting agriculture must be broken at the end of low output. Structural and institutional reforms are also called for, if productivity is to be increased. Uneconomic small farms should be enlarged and fragmented ones grouped together through consolidation and co-operatives. The quality of man behind the plough should be improved through education, general and technical. Adequate public health measures should be adopted to save him from the ravages of epidemics and other diseases. The farmer’s attitude should become more rational. He should become more responsive to new ideas and should shed off his fatalism and develop self- confidence.

Current Status 1. The Directorate of Economics and Statistics, Ministry of Agriculture (DESMOA) is responsible for the collection. a. Weekly and daily wholesale prices b. Retail prices of essential commodities

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c. Farm harvest prices 3. Weekly wholesale prices cover 140 agricultural commodities from 620 markets 4. Retail prices of essential commodities are collected on a weekly basis from 83 market centres in respect of 88 commodities (49 foods and 39 non-foods) by the staff of the State Market Intelligence Units, State Directorates of Economics and Statistics (DESs) and State Department of Food and Civil Supplies. 5. Farm Harvest Prices are collected by the field staff of the State revenue departments for 31 commodities at the end of each crop season and published by the DESMOA.

Some Salient Facts About Agricultural Scenario 1. Agriculture is the largest provider of livelihood in rural India 2. It contributes 25 percent to India’s GDP 3. It is still dependent primarily on the monsoons 4. The growth in agricultural production has been stagnant for the past several years. 5. The drought in north and western parts in financial year 09 created shortages in supply of food grains.

Conclusion The use of agricultural land is reduced. During the last one decade agriculture lands are converted in to residential houses and factories hence the number of agriculture labour lost their work and move to urban areas. This leads to low output in agricultural products, insufficiency and rise in food articles prices. Number of surveys said that the world will go to face food insufficiency in near future. In India Maximum of landholders fall under the category of Small farmers, so they are not able to meet out the increasing input cost and not able to introduce any new technological machineries in their farms, due to this reason our “farmers are born in debt, live in debt and died in debt”. Agricultural reforms and increased private investment is must, especially for small farmers. Creating a viable model of public-private partnership that allows private investors to invest in agriculture infrastructure in partnership with banks and financial institutions. This will help the farmers to access the high quality technologies and increase the output with international standards to meet the global market requirements. The policy makers in India have a high responsibility on reducing poverty by raising agricultural productivity and developing the rural population economic status from deprived condition. However, bold action from policymakers will be required to shift away from the existing subsidy-based regime that is no longer sustainable, to build a solid foundation for a highly productive, internationally competitive, and diversified agricultural sector. The very urgent need is the policy makers and government should take responsible steps to improve the agricultural sector and eradicate poverty and food starvation in the world. Without a positive economic environment, agricultural revival is impossible

References 1. Kurukshetra, May 2007, Vol. 55, No.7. 2. Kurukshetra, April 2008, Vol.56, No.6.

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3. Kurukshetra, July 2009, Vol.57, No.9. 4. Kurukshetra, August 2009, Vol.57, No.10. 5. Kurukshetra, April 2010, Vol.58, No.6. 6. K.K. Dewett, J.D. Varma, M.L. Sharma, Indian Economics, S. Chand and Company Ltd, 2002. 7. An Introduction to Agricultural Social - Subhash Chandra, New Visha. 8. Current State of -in India-2012- Golden Peacock. 9. Agriculture in India- B SambasivaRao, Serials Publications.General Agriculture- Muniraj S Rathore, Jain Brothers. 10. Suresh A. and Pooran Chand, 2004 .Trade Related Aspects of Intellectual Property Rights., Kurukshetra, Vol. 52, No. 4, April 2004, New Delhi. 11. Haque T., 2003 .Decent Work in Agriculture in India. In a Report of the Asian Regional Workshop 18th to 21st August 2003, International Labour Office, Bangkok edited by D.P.A. Naidu and A. Navamukundan.

Websites 1. www.syahoo.com 2. www.google.com 3. www.redigg.com

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FINANCIAL ENGINEERING IN BANKS – DIGITAL INDIA, STRIVING FOR SERVICE EXCELLENCE

P. Manimozhi Ph.D. Research Scholar, Mother Teresa Women’s University, Kodaikanal Assistant Professor Patrician College of Arts & Science, Chennai

Dr. T. Saroja Assistant Professor, Women’s University College of Education Mother Teresa Women’s University, Kodaikanal

Abstract Techno dynamism creates the entire World to be amazing. Banking had its own evolution, right from small desk dealing to cashless society creation. Electronic Banking has made tremendous changes in the Banking scenario. Mobile Banking is yet another new mile stone. In near future, probably Video banking, Robotics usages, Smart watches will become more popular in banking paradigm. Necessity is the mother of invention. Similarly, for the creation of cashless society as per the direction of Central Government, there is a need to have technological advancement. Financial Engineering is an integration of Financial Management, Mechatronics (Mechanical Engineering & Electronics Engineering) and Information Technology (IT) together. The Banking scenario in India in the post liberalization and deregulated environment has witnessed sweeping changes. In India, payment systems are characterized by the presence of a large number of paper based transactions with cheques constituting more than 60% among the total payment in terms of volume. Digital Cash, Real Time Gross Settlement (RTGS), Electronic Clearing Service (ECS), Electronic Fund Transfer (EFT), National Electronic Fund Transfer (NEFT), Cheque Truncation System (CTS), Digital Cash, Electronic tokens, Electronic Checks, Paytm, Digital Financial Reporting Information System are all some of the important Financial Engineering aspects in Banks. Keywords: Demonetization, Online banking, E-banking, Cashless Society, Cashless Economy, E-Wallets, Paytm, Video Banking, Smart watches, Robotics usages.

Introduction Financial Engineering is an integration of Financial Management, Mechatronics (Mechanical Engineering & Electronics Engineering) and Information Technology (IT) together. After the advent of internet and electronic banking, the concept of Financial Engineering becomes more popular in Banking. Due to the advent of Mechatronics and Information Technology, ATM (Automated Teller ) came into existence and thereby, withdrawal of money becomes very easy for the deposit holders. The tremendous changes have been happening in banking industry since 2001. In fact, the concept of Financial Engineering becomes Bank Engineering and we use to integrate Mechatronics and IT for any financial management or financial service or financial innovation. Now a days, money transfer is easily possible within a fraction of second by electronic medium due to the advancement of Mechatronics and Information Technology enabled services. In the United States of America, it is estimated that only 3%of the 460 billion dollars super market industry is transacted on credit or debit cards. Only 1% of the 300 billion dollars professional services area is transacted electronically. Less than 12% of the business at Gasoline service stations is electronic and less than 1% of the Fast Food restaurants have magnetic stripe readers. The educational market alone is more than 100 billion dollars today, only 6% of which

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is transacted electronically. Consumer payments at the point of sale were 3.6 trillion dollars in 1994, 19% of which was on credit and debit cards. The electronic payment issue is proving to be one of the biggest stumbling blocks in the popularization of commerce over the net. Perfect solutions to questions regarding security, integration, ease of use are still not available in developed countries like USA. This is ongoing process. In very near future, perfect solutions will be possible. Of course, various researches on Financial Engineering are going on. This is the Inter disciplinary research that needs special attention for the improvement of entire Banking System all over the World. Digital Cash, Real Time Gross Settlement (RTGS), Electronic Clearing Service (ECS), Electronic Fund Transfer (EFT), National Electronic Fund Transfer (NEFT), Cheque Truncation System (CTS), Digital Cash, Electronic tokens, Electronic Checks, Digital Financial Reporting Information System are all some of the important Financial Engineering aspects in Banks. A Transformational Research has been made among the customers (200) and the Bankers (10) to understand the issues and prosperities of Financial Engineering in Banks, by adopting convenient sampling technique (by having good judgment on samples). Both primary data, collected till December 2017 and Secondary data collected till Feb 10, 2018 have been utilized for this research purpose. The important research results of the study are portrayed in this article.

Financial Engineering IN Banks This is a field of study that integrates three branches of studies together, namely, Financial Management, Mechatronics (Mechanical Engineering and Electronics Engineering) and Information Technology & Enabled Services (ITES) together. Thereby, any financial management affairs, financial services and financial innovations will be integrated with Mechatronics and ITES. This will pave a way for Financial Management prosperity. This has been depicted by the following picture.

Research Methodology This Study is Exploratory Research and Transformational Research. The research results can be transformed into realities. Ten Banks have been selected by following simple random sampling (Totally 200 banks available all over India as per RBI website). Such ten banks include Foreign banks, private sector banks and Nationalized banks. Two hundred bank customers were contacted by following convenient sampling. This population cannot be defined very well, because, every day, some new customers and new accounts will come. So, Convenient Sampling is viable for this Study. Necessary care has been taken to represent sampling from the entire set of population. In order to test the primary data, collected till December 2017, U test and Rank Sum tests have been applied and ensured the data distribution as normal.

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New Age Financial Engineering in Banks Technological advancements all over the World have had a positive impact on Payment and settlement systems in India too. The Reserve Bank of India is constantly pursuing the banks to introduce computerization at branch level to improve the quality of customer service through technology. The absorption of technology in Indian Banking Scenario has witnessed a gradual, but steady transgression in the last three decades. The following table describes the various electronic payment options, its attributes, participants and coverage.

Table 1 Electronic Payment Systems Amount Type Attributes Locations covered Participants restrictions Real time Electronic credits, Inter bank or Has a minimum Over 3000 banking Banks, Financial Gross customer transactions, Near real transaction of centres, More than Institutions, Settlement time value (Maximum of 2 to 4 Rs. 1 lakh 27,000 bank Corporate and (RTGS) hours). But, available only effective from 1st branches covered retail customers through specific time window Jan 2007 can use RTGS for during the day time payments Electronic Electronic, Bulk transfers (1 to Less than Rs. 43 centres. 15 Corporates who Clearing many transfers). Only after the 5,00,000 centres are need to do bulk Services – cycle is complete, the finality of managed by RBI credits to the Credit settlement could be known customers, salary payments, dividend payout Electronic Electronic, Bulk transfers (many Less than Rs. 43 centres. 15 Corporates who Clearing to 1). Only after the cycle is 5,00,000 managed by RBI need to collect Services – complete, finality of settlement regular payments – Debit could be known loan payments, utility payments Electronic Electronic, one to one transfer. No amount 15 RBI clearing Banks, corporate Fund Deferred net settlement system. restrictions on centres. and individual Transfer One clearing cycle a day amount, but customers can bank’s initiate transfer discretion National Electronic, One to one transfer. No amount 23,000 branches Banks, corporate Electronic Deferred net settlement of each restrictions, but across. More than and individual Funds branch. Multiple batches in a bank’s 3000 locations customers can use Transfer day. It will be finalized once the discretion covered this transaction is uploaded in RBI system. If not returned, then the settlement is final. There are 6 settlements in a day and 4 on Saturdays Cheque Electronic imaging of physical No amount Implementation in The paper based Truncation cheque and use of that images to restrictions. Delhi in 2007 and clearing will move System clear then to other cities to this. All participants can use it. No special efforts needed.

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Table 2 Contributions of Electronic And Paper Based Payment System Credit Cards Debit Cards Amount NEFT Month Amount of ECS Debit ECS Credit of Transactions (Rs. In and Transactions (Rs. In (Rs. In RTGS (Rs. In Millions) Billions) Year (Rs. In Millions) Billions) Billions)

ATM POS ATM POS Jan 1539.2 327082.5 1516436.7 490041.9 10.51 1.43 77486.07 11355.08 2017 Feb 1909.8 287042.3 1928381.3 358433.7 8.04 1.31 74218.81 10877.91 2017 March 2291.2 333904.9 2259457.4 356991.3 9.69 1.55 123375.83 16294.50 2017 April 2327.2 331429.0 2168595.8 374818.8 9.68 1.21 88512.19 12156.17 2017 May 2609.0 361406.8 2163917.8 371623.3 10.36 1.06 90170.52 12410.81 2017 June 2671 354832 2256928.2 375238 10.49 0.89 92812.58 12694.20 2017 July 2848.5 339297.4 2270761.2 345684.2 10.90 0.93 87149.26 12011.60 2017 August 3045.5 362987.8 2352957.2 354126.2 10.96 0.83 89163.39 12500.38 2017 Sept 3106 374655 2419540 366292 9.60 0.84 102348.13 14182.14 2017 Oct 3210 419390 2533210 408695 10.72 0.83 98410.49 13884.00 2017 Nov 3204.0 392962.0 2492721.7 365193.0 10.38 0.83 98410.49 13884.00 2017 Dec 3340.0 418503.6 2633096.0 404612.0 7.24 0.84 100907.79 15779.20 2017 Source : RBI data base dated 10th Feb, 2018 The following observations were made. Electronic payments are growing at a much better rate than paper based instruments. Every month, all the electronic based instruments’ usages are being increased consistently. In fact, the share of value of electronic payments in overall value is catching up with paper based value and if this trend continues, in a matter of few more years, in all the countries where we studied, the value of payments through electronic payments will be more than the value through the paper based instruments. Countries are taking initiatives in implementing sound payment and settlement systems for the benefit of its customers and Economy. Reserve Bank of India is aggressively promoting options along with other banks to reduce paper based transactions – including cash transactions and are being fairly successful in accomplishing the goal. Needless to say, all these electronic payments has technology as its own backbone. These are also clear indication that, in this electronic age, customers are willing to accept the changes and adopt the new age payments.

Banking Future Today, we are all living in techno dynamic era. Electronic banking has created a new dimension in traditional banking for the past two decades. Smart banking delivers exceptional banking solutions like savings, investment, loans lending and various plans by using various advanced technologies in banking. SBI buddy, SBI Pay, Paytm, Mobikwik are all various recent emerging technologies that stimulate the minds of all the customers of banks, all over India. Mobile companies are also coming forward to offer banking services, for example Airtel

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” banking solution. There is a new concept, called Video Banking, i.e., usage of video conferencing technology in banking. Similarly, several newer concepts have been emerging, such as Voice and touch system (Bio metric system, embedded with voice), In-car apps, Smart watches, Facial recognition, Google glasses, Robotics, Augmented reality of 3D imaging visualization of balances, Beacon technology, Video Banking, Crypto currencies, Artificial intelligence and Digital cheques. Such new technologies can help banks to attract more number of customers and retain them, engaging employees and to increase revenues. How far such banking technologies will have been more popular and technically feasible in India is a question to be answered. This research article portrays the attitude of bankers and bank customers towards the introduction of newer technologies in India.

Smart Banking This means launching of more number of banking technologies and implementation of the same. Such banking technologies include Video Banking, Robotics assistance, Google glasses (Spectacles), Facial recognition, artificial intelligence, 3D imaging visualizations etc., etc.,. Now a days, we have been using various technologies namely, Smart phones, internet in laptops etc.,. Apart from the regular usages of banking technologies, newer technologies will also be introduced and the banking process will be smarter and smartest in future. The Smart Banking has four pillars of new technologies. 1. Regular Banking affairs – Financial Management & Risk Management : a. Three Dimension visualization of figures in various types of modernized charts – Augmented reality image concept b. Crypto currencies, like Afri coin and Bitcoin etc., c. Digital cheques d. Artificial Intelligence 2. Communication and Interaction : a. Facial recognition to identify the customer b. Voice and Touch system c. Video banking d. Robotics usage – Greeting customers, helping them, guiding them and serving them e. Google Spectacles 3. Marketing Management – Marketing of Banking Services: a. Video Banking b. Facial Recognition c. Beacon technology (Blue tooth technology) d. Smart Watches 4. Information Technology a. In-car apps b. Smart watches c. Three Dimension visualization of figures A survey has been made among the customers of bank about the future of Banks with modernized sophisticated technologies, such as Video Banking, Robot Banking etc., Regarding customers, 200 bank customers were contacted, by following Quota sampling method (a method in Non-Random Sampling).

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Business people (Manufacturing, Trading and Service) = 100 customers Professionals and Employees = 100 customers Such customers may have accounts with any bank. Only the income earning people are contacted. Dependents like housewives, students and unemployed persons were not contacted for this survey. This Research has been conducted during December 2016 to December 2017 (13 months) after demonetization. Due to demonetization, people have to stand in a long queue for getting currencies. Besides, several regulations of Central Government and RBI made the people to hesitate banking. Therefore, more number of people want to go for easy banking. Central Government insists the people to go for “Less cash and Cashless society”. Hence, this creates an environment for Smart Banking, i.e., introduction of newer banking technologies and customizing the same. The Research results are highlighted one by one. The results are portrayed in the following table.

Table 3 Attitude of Customers towards Smart Banking and Launching Newer Banking Technologies in Future Future Banking MN Nec Neu UN NI Total Total Percentage Rank Technologies Respondents Scores to total Video Banking 191 9 NIL NIL NIL 200 591 10.98 1 technology, including Facial recognition Voice and Touch 190 8 2 NIL NIL 200 588 10.93 2 system (Bio metrics system with voice) Smart Watches 187 11 2 NIL NIL 200 585 10.87 3 (smart phones inside watches) Robotics usage 164 21 15 NIL NIL 200 549 10.20 4 Advanced 158 22 20 NIL NIL 200 538 10.00 5 Artificial Business Intelligence to have Big data analytics Three 146 28 26 NIL NIL 200 520 9.66 6 Dimension images – visual representation of figures in bank statement In-car apps and 146 27 27 NIL NIL 200 519 9.64 7 smart banking inside car

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Beacon 132 38 30 NIL NIL 200 502 9.33 8 technology (Blue tooth technogy and personalizing customer services) Google 130 38 32 NIL NIL 200 498 9.25 9 spectacles that lead nearest branch for doing banking transactions Digital Cheques 127 38 35 NIL NIL 200 492 9.14 10 TOTAL 5382 100.00 Source: Primary data Note: MN = Most Necessary; Nec = Necessary; Neu = Neutrally necessary (May be necessary or it may be optional); UN = Unnecessary; NI = No idea or No Comment. Scores calculation: Most necessary = 3; Necessary = 2; Neutral = 1; Unnecessary and No idea = 0. It is very clear from the above table that most of the customers prefer Video Banking technology (Rank 1), followed by Voice and Touch sytem (Rank 2), Smart watches (Rank 3), Robotics usage (Rank 4) and Advanced Artificial Business Intelligence (Rank 5). The Survey has been made among the bankers also. The results of the same are portrayed as follows.

Table 4 Attitude of Bankers towards Smart Banking and Launching Newer Banking Technologies in Future Future Banking Moderate Total Total Percentage Ready Soon Delay NI Rank Technologies time Respondents Scores to total Digital Cheques 9 1 NIL NIL NIL 10 39 13.04 1 Voice and Touch system (Bio metrics 7 3 NIL NIL NIL 10 37 12.37 2 system with voice) Video Banking technology, 6 3 1 NIL NIL 10 35 11.71 3 including Facial recognition Advanced Artificial Business Intelligence 5 3 2 NIL NIL 10 33 11.04 4 to have Big data analytics Three Dimension images – visual representation of 5 2 3 NIL NIL 10 32 10.70 5 figures in bank statement

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Smart Watches (smart phones inside Nil 6 3 1 NIL 10 25 8.36 6 watches) Robotics usage Nil 7 3 NIL NIL 10 27 9.03 7 Beacon technology (Blue tooth technogy 1 5 2 2 NIL 10 25 8.36 8 and personalizing customer services) In-car apps and smart banking inside 1 4 2 3 NIL 10 23 7.69 9 car Google spectacles 9 that lead nearest Nil 5 3 2 NIL 10 23 7.69 branch for doing banking transactions TOTAL 299 100.00 Source: Primary data Note: Ready = Almost ready; Soon = As early as possible; NI = No idea or No Comment. Scores calculation: Ready = 4; Soon = 3; Moderate time = 2; Late = 1; No idea = 0. It is derived from the above table that Banks are almost ready to launch Digital cheques (Rank 1), followed by Voice and Touch System (Rank 2), Video Banking (Rank 3), Advanced Artificial Business Intelligence (Rank 4) and Augmented reality of 3 D visual representation of bank accounts (Rank 5).

Conclusion If an athlete has to win in the running race, he has to target his reaching place. At the same time, he has to see the people who are running ahead of him and on par with him. He has to bench mark the standard in his running and increase the speed. Otherwise, he cannot win. Therefore, two eyes (minds) are needed very clearly, one eye on target focus and another eye on bench marking of speed management. Similarly, a banker has to manage the present customers and deposits. At the same time, he has to foresee and implement the newer technologies in banking. Now a days, Paytm, SBI Buddy, SBI Pay are all becoming more popular, because of smart banking advancement. In near future, Video Banking, Smart watches and Robotics usages will become more popular. In near future, bankers will get customers from all over the World, instead of local areas. This will bring Mass customization. Customers will get their services as early as possible. This is called as Agility Service. Time will come very soon to have entire Universe in our palm to do banking & trading activities. Money laundering and Electronic frauds intellectually are all there with Modern Financial Engineering in Banks. But, more prosperities are there like Economic Prosperity, Quick fund transmission and the like. All the limitations and constraints at present can be solved so nicely and we can implement Financial Engineering so successfully.

References 1. Narinder Kumar Bhasin, Asst Vice President, Retail Bank Branch, Axis Bank, New Delhi, Banking, Finance and Technology, Bank net Publications 2. Saubrabh Agarwal, Faculty, ICFAI National College, Kanpur, Banking, Finance and Technology, Bank net Publications

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3. Anil Somani, Banking Architect, IBM Financial Services Sector, Banking Centre of Excellence, USA, Banking, Finance and Technology, Bank net Publications 4. Nancy, Research Scholar, Dept of Studies in Commerce, University, Dharwad, Banking, Finance and Technology, Bank net Publications 5. Praveen and Paras Verma, Symbiosis Institute of Computer Studies and Research, Pune Banking, Finance and Technology, Bank net Publications 6. RBI Bulleting, Monthly 7. ALM Management, NIBM Publication 8. Arun Jaitley, Union Finance Miinister, http://indianexpress.com/article/india/india-news- india/reduce-the-use-of-currency-go-digital-arun-jaitley-demonetisation-4394668, dated Nov 25, 2016 9. Press reporter, http://www.livemint.com/Money/D2HqT88rKHlvl4gryKv6TP/Did-You-Know- -The-difference-between-RTGS-and-Neft.html 10. RBI repot, www.rbi.org.in , dated December 31, 2016 11. Press reporter, http://www.livemint.com/Money/D2HqT88rKHlvl4gryKv6TP/Did-You-Know- -The-difference-between-RTGS-and-Neft.html

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CONSUMER’S PROBLEMS AND ITS PROTECTION ACT

Dr. S. Anandarajan, M.Com., M.Phil., Ph.D., HOD PG and Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam, Tamilnadu

P. Gowthami M.Phil. Research Scholar, Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam, Tamilnadu

Abstract Consumer is an important part of economic system. Whatever goods and services are produced or made available must be consumed. Unless there is consumer to consume the goods and services the whole system will come to a halt and collapse. Therefore, the consumer is called ‘king’ and in many countries he has been given very high and important place in the whole economic system. In India, a number of acts have been passed from time to time to protect the interest of consumers.

Consumer A consumer isany person who buys any product or hires or avails of any service. The product or service must be paid for either wholly or partly, or may have to be paid latter. The services covered by the Consumer Protection Act include supply of electricity, banking, financing, airline, repairs, transport, communication, construction, medical treatment, etc..,

The Consumer Protection Act, 1986 The consumer protection Act, 1986 is an important piece of legislation enacted by parliament in order to provide adequate scope for the consumer to voice forth his grievances and also to redress the grievances. The Act is really a boon to the people of India who have been taken for a ride hitherto by traders and manufacturers. Once the consumer becomes fully aware of the privileges and powers they have acquired through this Act, they will start asserting their rights. Till now, these rights were only vague. The right to be protected against marketing of hazardous goods, the right to be informed about quality, quantity, potency, standard and price of goods, the right to be informed about the availability, the right to seek redress against unfair trade practices and unscrupulous exploitation, the right to be educated about their rights,etc.., have been embodied in the consumer protection Act, 1986.

Basic Objectives of the Act 1. Provide better protection to consumers; and 2. Provide for the establishment of Consumer Council and Other authorities; 3. Establish suitable machinery specially consumer councils to settle disputes.

Rights of Consumers Right to Safety This is the right to be protected against the marketing of goods and services which are to life and property.

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Right to be informed This means the right to be informed about the quality, quantity, potency, purity, standard and price of goods and services, as the case may be, so as to protect the consumer against unfair trade practices.

Right to choose It means the right to be assured, wherever, possible, access to a variety of goods and services at competitive prices.

Right to be Head It means the consumer’s interests will receive due consideration at appropriate forums. It also includes right to be represented in various forums formed to consider the welfare of consumers.

Right to Consumer Redressal It means the right to seek redressal against unfair practices or restrictive trade practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine grievances of consumers.

Right to Consumer Education It means the right to acquire the knowledge and skill to be an informed consumer.

Problems Faced by Consumers Consumer is the most neglected being in the present scarcity ridden society. A business unit can not dare to ignore its consumers, if it wants to flourish. But even after a lot of Acts and Rules, a number of problems are suffered by the consumers. We have explained the major problems faced by consumers with the help of the following points:-

Lack of Information The main problems faced by consumers are lack of information. The customers even do not know the sources of getting information.

Illiteracy Most of the consumers in urban and remote areas are illiterate and they are not able to understand the policies of the organization or the government, even they do not understand uses or misuses of products.

No Fair Return The customer, though pay high price for the goods the purchase, but many times they do not get satisfaction from the goods they have purchased.

Exploitation The consumers in Indian market are exploited by the sellers. Sellers create artificial scarcity, hoarding, black marketing, high prices etc.

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Adulteration Most of the times consumers even after paying high price, do not get pure or we can say quality goods. The organization usually supplies adulterated goods for their profit maximization.

Irregular Supply One of the common problems faced by consumers is an irregular supply of goods. This is because of shortage of goods. The organizations create artificial scarcity of necessary goods by hoarding these goods resulting in high prices.

Attractive Packing The packed goods supplied in the market, are not up to the mark. The packing is very attractive and it attracts the attention of consumers. The packets may contain inferior goods thereby fooling consumers.

Disorganized customers This is also one of the most common problems faced by consumers nowadays. The customers are widely scattered and they are not united. As against this the producers are organized and united. Because of various reasons it is not possible for customers to come together & fight. This results in consumer exploitation.

Meaning of Complaint Complaint means any allegation in writing made by a complaint that, 1. An unfair trade practice or a restrictive trade practice has been adopted by any trader; 2. The goods bought by him or agreed to be bought by him suffer from one or more defects; 3. The services hired or availed of or to be hired or availed of by him suffer from deficiency in any respect; 4. A trader has charged for the goods mentioned in the complaint a price in excess of the price fixed by or under any law for the time being in force or displayed on the goods or any package containing such goods with a view to obtaining any relief provided by or under the Consumer Protection Act.

Who can file a complaint? 1. A consumer; or 2. Any voluntary consumer association registered under the Companies Act,1956 or under any other law for the time being in force; or 3. The Central government or any State Government, who or which makes a complaint.

Remedies to a Consumer If any of the Consumer Disputes Redressal Agencies is satisfied that any of the all legislations contained in the complaint is true, it shall issue an order to the opposite party directing him to take one or more of the following things, namely: The remedies available to dissatisfied consumer through the redressal machinery are as under: 1. Removal of defects in goods. 2. Replacement of goods with new goods of similar description which shall be free from any defect.

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3. Return of price by the seller. 4. Payment of compensation if the consumer has suffered any loss or injury. 5. Remove the defects or deficiencies in the services. 6. Discontinue the unfair/restrictive trade practices, and not to repeat them. 7. Not to offer the hazardous goods for sale. 8. Withdraw the hazardous goods from being offered for sale. 9. Provide for adequate costs to parties.

Consumer Protection Council The union ministry of Food and Civil Supplies has constituted Consumer Protection Council consisting of representatives of the concerned ministries, State governments, consumer organizationsand co-operative bodies and Indian Standards institutions. This council will advise the government on all matters concerning consumer interest and suggest executive measures related to various aspects of consumer protection. The council is also empowered to consider financial assistance to consumer organizations. In Delhi, the Metropolitan Council passed the Delhi Consumer (purchase) Disputes Council Act in the year 1984. This has been intended to deal with cases relating to consumer disputes. According to this Act, any consumer can make petition before the council if the article purchased is not up to the quality or standard. If the council finds what the petitioner has stated its true, it can order the purchaser to make the good loss.

Evaluation of Consumer Protection Before Consumer Protection Act was passed in 1986, there was none to hear complaints of consumers. The District Forums and State and National Commissions have been taking the complaints of consumers very seriously and in many cases have ordered severe punishment both in cases of goods and services. The definition of defects, deficiency, restrictive and unfair trade practices is so wide that dissatisfaction of consumer is covered and if he is deceived in any manner, he can approach the law. The judgements of the forums and commissions have encouraged the consumers to approach frequently to these bodies. But with the increase in the number of cases there are in ordinate delays in listening to complaints and passing the orders. Further, with the passage of time it is becoming almost necessary to engage a Lawyer though not required in law. This is making the system costly. Actually, the protection cannot be by law alone but proper business culture and competition in the system is needed.

Legislation for Consumer Protection in India In India, there are plethoras of enactments to safeguard the interest of the consumer and the list has become a formidable one. However, some important legislation designed to protect the consumer’s interest are given below.

MRTP Act to Prevent Unfair Trade Practices What are unfair trade practices? Based on the recommendations of Sachar Committee,36A of MRTP Act, as amended in 1984,defines the unfair trade practices to mean any trade practice which for the purpose of promoting the sale, use or supply of any goods or for the provision of any services, adopts one or more of the practices specified below and thereby causes loss or

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injury to the consumer of such goods or services .The following will constitute unfair trade practices :  Misleading advertisement and false representation.  Bargain sale, Bait and switch selling.  Offering Gifts or Prizes.  Safety sub-standard products.  Hoarding or destruction of goods.

Misleading advertisement and false representation This unfair practices include falsely representing that the goods of a particular quality, standard style or composition or model while they are not like that : falsely representing that the services are of a particular type, standard quality or grade ; falsely representing that the re-built ,second hand, renovated ,reconditioned or old goods as new goods ;Falsely representing that goods and services have sponsorship ,approval, performance, characteristics, uses or benefits which they do not have ;falsely representing that the goods have approval or affiliation of certain organizations , while they may not have;making false representation for giving warranty or guarantee of the performance without adequate test , making a false promise to repair an article sold and also repeat the services until it has achieved the specific result; making a false and misleading representation to the public about the price of the product; or making remarks of the goods and services or other trade or person .

Bargain sale, Bait and switch selling This includes advertisement to supply the commodities at a bargain price, while the intention will not be to offer adequately reasonable quantities to cater the market. A bargain is a price supposed to be less than the ordinary price and a person who is led by the advertisement will think that he can get the commodity at a lesser price that what is prevailing generally.

Offering Gifts or Prizes Offering gifts or prizes or other items with the intention of not providing them offered or creating an impression that something is being given free of charge, when actually the cost of the gift is covered by the price paid by the customer is considered an unfair trade practice.

Safety sub-standards Commodities that do not come up to the standard prescribed by the competent authority relating to performance , composition ,contents, construction, etc..,and which may cause injury to the person using it.

Hoarding or destruction of goods This is the provision of the Act relates to the hoarding or destruction of goods or refusal to sell the goods to raise the price of those related goods. The Section 36B of the MRTP Act, as amended gives power to the MRTP Commission to inquire into all the above stated unfair trade practices and prevent them and also order compensation under Section 12B.

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Essential Commodities Act, 1955 This is a Central Act passed in the interest of protecting the consumer and the general public for the control of production, supply and distribution of some specific commodities considered to be very essential. The Act secures equal distribution and availability of these commodities at fair price.

Food Adulteration Act, 1954 The Prevention of Food Adulteration Act, 1954 which came into force from 1955 was designed to replace all the legislations enacted by the State Governments in this regard. To ensure uniformity the Central Act was passed. This Act provides for,(i) A Central Food Laboratory to which food samples can be referred , to find out their quality and content in case of disputes (ii)A central Committee for Food Standards consisting of representatives of Central and State Government to advise on matters arising from the administration of the Act.(iii)Finally, the Central Government is vested with rule-making power regarding standard of quality for articles of food and certain other matters.

Black Marketing and Maintenance of supplies of Essential Commodities Act, 1980 The primary object of this Act is to provide detention of people for purposes of preventing them from black marketing and maintaining the supplies of essential commodities for the benefit of the public. Under this Act, the Central and State Governments have been empowered to order detention of a person who is found to be acting in any manner prejudicial to the maintenance of supplies of commodities essential to the community .The maximum period for which any person may be detained cannot exceed 6 months from the date of detention.

Sale of Goods Act,1930 The Sale of Goods Act came into force in 1930 repealing Chapter VII of the Indian Contract Act of 1872.Although the Sale of Goods is mainly intended for regulating the sale of goods and protecting the interest of sellers and buyers, it provides some sections to protect the interest of consumers.

Trade Marks and Merchandise Marks Act, 1958 A trade mark is an assurance to the customer or the consumer about the quality of the commodity and the Act by providing the registration of trade mark and merchandise mark will strengthen the dependability.

The Standards of Weight and Measures Act, 1956 According to this Act, the metric system of weights and measures were introduced throughout the country replacing the old Acts in which multiple standards of weights and measures were used. Further, the act provides for using and dealings only in standards weights and measurements.

Agricultural Products Grading and Marketing Act, 1937 In the case of Agricultural commodities, malpractices and adulteration are quite common throughout the country and the above Act attempts to minimize these defects in agricultural marketing. The Act provides for (i) Grading and Standardization of agricultural commodities ;(ii)

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Regulation of market and market practices ;(iii) Market Research and Surveys ;and (iv) Training of personnel in agricultural marketing.

Indian Standard Institution Certification Act, 1952 The Indian Standard Institution (ISI) certificate is a guarantee of the quality of the products. This scheme which was started on a voluntary basis in 1946 had been brought under the Act in 1952. It is stated that nearly 11,000 organizations in India had adopted the ISI standards. This covers nearly 90 percent. Defaulters, after obtaining ISI certificate will have to face heavy penalty. The maximum fine may be even up to Rs.10,000.ISI standards have been developed for many essential commodities like fire-fighting equipment, cement, gas stove, etc.

Suggestions  Consumers should be made aware of consumer rights and organize to promote and protect their own interest.  Consumer should beware of deceptive advertisements. The consumer should insist on guarantee and warranty card duly stamped and signed by the seller.  The consumer should be more conscious and aware of their right and responsibilities, through seminar, conferences, talks, NukkarNatak and campaign. The consumer literacy should be impacted by booklet in simple and regional language to create awareness among the consumers about their rights.  Consumer clubs should be set up at block and village levels to entertain the consumers’ problem. There should be consumer helpline at the grassroots level so that their complaints can be redressed promptly.

Conclusion The reasons for the delay in disposal of cases were the reluctant behaviour of consumer court, irresponsible behaviour of lawyers and pending of large number of cases. Though the consumers can approach the forums directly for redressal of their grievances, they can file cases either through lawyers or voluntary consumer organization. The majority of the cases were filed through lawyers in both forums. Majority of the cases filed were relating to unfair trade practices, electricity finance, followed by other categories which include medical negligence and other government departments.

References 1. Essentials of Business Environment, K.Aswathappa, Himalaya Publishing House, Pp.516. 2. Business Environment, Dr.N.Premavathy, Sri Vishnu Publications, Pp.31.1, 31.3-31.5, 31.8-31.9. 3. Business Environment, Dr.S.Sankaran, Margham Publications, Pp.221, 223-228,231,238. 4. www.indiastudychannel.com/resources/127857-What-are-problems-faced-by- consumers.aspx

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AN OVERVIEW: SWOT ANALYSIS ON GOODS AND SERVICE TAXES

P. Priscilla, M.Com., M.Phil. (Authorship) Assistant professor, Joseph arts and Science College, Thirunavalur

C. Manikandan, M.Com., M.Phil. (Co-Authorship) Assistant professor, Joseph arts and Science College, Thirunavalur

Abstract Goods and Service Tax (GST) is a Value Added Tax (VAT), which hypothetically to be put into effect from April 2010, but because of conflicting interest of stakeholders and various political controversies it has been passed in both Houses of Parliament on Aug. 3, 2016. It alone indirect tax which influence the whole economy directly. India is a centralized constitutional economy. GST is applicable on all States and Union territories, known as CGST (Central Goods & Services Tax) and SGST (State Goods & Services Tax). The ill effects of cascading can be mitigated after tie up the central and states taxes in solitary tax. The economy is expected to pave the way of common national market as it will provide benefits to consumer by reducing overall tax burden of goods. Introduction of Goods and Service Tax (GST) is a gigantic tax transform in contemporary ancient times. This paper describes a brief introduction of current indirect tax structure and GST in India. What are challenging factor in implementation and what can be the opportunities of GST in India.

Introduction “A tax is a compulsory charge imposed by a pubic authority, irrespective of the exact amount of service rendered to the tax payer in return and not imposed as a penalty for any legal offence”.

Good and Service Tax Goods & Services Tax is a comprehensive, multistage, Destination-based tax that will be levied on every value addition. Goods and Service Tax (GST) implemented in India to bring in the ‘one Nation one tax’ system, but its effect on various Industries will be slightly different. The first level of Differentiation will come in depending on whether the Industry deals with manufacturing, distributing and Retailing or is providing a service. In India, GST was first time introduced on 28th February 2006 in the Budget Speech of the year 2006-07 by Finance Minister Sh. P. Chidambaram. A message was left by the Finance Minister in the Union Budget 2007-08 that GST will be introduced with effect from 1st April 2010. Central and State Governments will be work together to prepare a roadmap for the introduction of GST in India. They planned to introduce GST or “replacing the previous VAT and Service Tax” on 1st April 2010, but some of the States were not ready to implement the GST. After that on 1st April 2012, again Government was going to introduce GST, but due to some management and infrastructure problems it was not introduced. Finance Minister ArunJaitley introduced the 122nd Constitution Amendment Bill in Parliament and intends to implement GST reform by 1st April 2016. The advantage of GST is that it will replace Indirect Taxes which are levied by Central and State Government. The GST structure will present a transparent system which will be helpful to reduce the burden of cascading.

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Tax Structure from 16th Century to 19th Century In India, Islamic rulers were first ruler who introduces per capita yearly tax, known as Jizya, which was imposed on non-Muslim community. After sometime, it was consecutively stamp out by Akbar. In 1679, Aurangzeb, the last Mughal Emperor, charge Jizyafrom Hindu’s. The main inferences were financial harshness and personal biases. The era of British rule was eyewitness of significant changes in taxation system of India. Despite the fact, it was extremely benefiting the British government but it provides a base to modernized and scientific taxation system. The Britishers divide Indian taxation system in Direct and Indirect taxes. With the passage of time various amendments has been done for perfecting Indian taxation system. Presently, following taxation system is applicable in India. Strengths of Goods and Service Taxes in India  It will dropping out the cascading effects of tax on production and distribution of goods and services which will competitiveness and consequently, GDP will increase.  It will apply all goods and services except some exempted products.  Tobacco is not exempted from the area of GST. It is treated as Sin goods and come under the taxation with central excise tax.  Natural gas, Aviation Turbine Fuel (ATF), High Speed Diesel (HSD), Crude oil, Petrol products are exempted till the GSTC (Goods and Service Tax Council) discloses date of their formation.  Alcohol, real estate, custom duty and electricity are exempted from GST. (Proposed article, 366 (12A).  GST would be dual taxation system. It would be charged intra-State by Central and State governments. It would be called CGST (Central Goods and Service Tax) and SGST (State Goods and Service Tax) Weakness of GST System in India  The doorstep goal is very ground level for traders and service providers. It will raise appropriation of government ways and means which are costlier than government’s revenue.  GST is a subsume of various States and Central taxes like excise duty, cess, service tax, countervailing duty etc., but many more are left which should be included like electricity, alcohol etc.  GST for States and Central (SGST, CGST) seems to be different, further it can be diversified on the basis of location, geographical structure etc.  The tax rate is depends upon availability of fund in States. The States has power to increase the rate according to their need.

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 This system is very fond of technology, but India is a developing country where people are not habitual of technology. Opportunity of GST in India  The rates of tax are set at ground level which will help States and Unions to collect more revenue.  It will reduce the transaction costs and wastages of scare resources because at a one registration people can do transactions from States and Unions. So, it will connect the whole nation from a single click.  In indirect tax structure multiple taxes were charged from taxpayers. But GST will eliminate the taxes on chain of transactions.  GST is also known as “One Point Single Taxation System”. This is a helping hand for businessman’s, they can come to agreement on price modalities, supply chain etc., without thinking too much about taxes imposed on them at later stages.  GST will reduce average tax burden of consumers. They will be certain about their taxes which will reduce evasion of taxes. Threat of GST  Inter-States supply of goods and services are considered as import and IGST will be applied (1%) in addition to custom Duties.  The Central government promised for compensation to loss making States for a period of 5 years. The compensation will be as: 100% for first 3 years, 75 % for 4th year and 50% for 5th year. So, it is possible that all States does not implement it in effective manner to get compensation [17].  GST is not friendly with banking sector. Because the cost of goods become cheaper after GST and it will promote export. Presently, 14% service tax is being levied on baking transactions. GST will make these transactions more costly. Over and Above, in most of countries banking sector is excluded from GST [4, 15, and 17].  GSTC (Goods and Service Tax Council) will set the benchmark for resolving the dispute on recommendations of GSTC. It Means GSTC will lay down the criteria for GSTC itself. It is against the principle of natural justice.  GST is not a guarantee in itself that it would not be influenced by political parties and politicians will not use it as a win-loss. Conclusion It is found that in countries where GST has been implemented had positive impact on their economies. It can be looked as simplification of Taxes in country and avoiding unnecessary complexities. As for challenges are concern it is between State and Central Government proportion in Taxes majorly, but directly or indirectly it is adding wealth to nation only. It has great prospects in favor of the nation. Hence we can conclude the GST will help the government as well as consumers in determining their revenue and expenditures in specific time period. No doubt that GST will present India in a tops class taxation system which will grab the international eyes for investment. It brings international market more competitive and promotes the export. But this is entire depend upon rational design and timely implementation. There are numerous weaknesses and threats of GST which should be overcome by focusing on strengths and opportunities. There is a need to set different dispute settlement body on conflicting recommendations of GSTC.

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A STUDY ON STRESS MANAGEMENT TOWARDS CHENGALRAYAN CO-OP SUGAR MILL SOCIETY LTD, PERIYASEVALAI

M. Sabariraj, M.Com., M.Phil., B.Ed., SET., Assistant Professor, PG & Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil Arts Science College, Mailam, Tamil Nadu, India

S. Birundhavathi Research Scholar, Srimath Sivagnana Balaya Swamigal Tamil Arts Science College, Mailam, Tamil Nadu, India

Abstract Stress has become significant due to dynamic social factor and changing needs of life styles. Stress is man‘s adaptive reaction to an outward situation which would lead to physical, mental and behavioral changes. Even though stress kills brain cells, not all stresses are destructive in nature. Appropriate amount of stress can actually trigger passion for work, tap latent abilities and even ignite inspirations. The study throws light on the wide spread silent problem by name ‘Stress‘, which gave raise to acute dysfunctions and are called many diseases, increase divorce rates, and other harassments. The work stress is found in all professions. Every professional are very stress because they are highly target driven and highly pressured on results. ‘Athletes experience the strength that comes from eu-stress right before they play a big game or enter a big competition. Because of eu-stress, they suddenly receive the strength that is required to perform to the best of the ability”. Stress can make a person productive and constructive, when it is identified and well managed. The focus of the paper is to study the Stress Management Towards Chengalrayan Co-Op Sugar Mill Society Ltd, Periyasevalai. A survey of 70 employees in the Chengalrayan Co-Op Sugar Mill Society Ltd companies situated in and around Villupuram is done. Some of the stress management strategies identified by this study includes stress management programs, physical activities planned in job design, life style modification programs, finding triggers and stressors, supportive organization culture, stress counseling programs, and spiritual programs. Keywords: Stress, adaptive reaction, behavioral change, eu-stress, IT employees; and coping strategies.

Introduction The most commonly accepted definition of stress (mainly attributed to Richard S Lazarus) is that stress is a condition or feeling experienced when a person perceives that "demands exceed the personal and social resources the individual is able to mobilize." In short, it's what we feel when we think we've lost control of events. Stress management refers to the wide field of techniques and psychotherapies aimed at controlling a person's levels of stress, especially chronic stress, usually for the purpose of improving everyday functioning. In this context, the term 'stress' refers only to a stress with significant negative consequences, or distress in the terminology advocated by Hans Selye, rather than what he calls stress, a stress whose consequences are helpful or otherwise positive. Stress produces numerous physical and mental symptoms which vary according to each individual's situational factors. These can include physical health decline as well as depression. The process of stress management is named as one of the keys to a happy and successful life in modern society. Although life provides numerous demands that can prove difficult to handle, stress management provides a number of ways to manage anxiety and maintain overall well-

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” being. Despite stress often being thought of as a subjective experience, levels of stress are readily measurable, using various physiological tests, similar to those used in polygraphs. Many practical stress management techniques are available, some for use by health professionals and others, for self-help, which may help an individual reduce their levels of stress, provide positive feelings of control over one's life and promote general well-being. Evaluating the effectiveness of various stress management techniques can be difficult, as limited research currently exists. Consequently, the amount and quality of evidence for the various techniques varies widely. Some are accepted as effective treatments for use in psychotherapy, whilst others with less evidence favoring them are considered alternative therapies. Many professional organizations exist to promote and provide training in conventional or alternative therapies. There are several models of stress management, each with distinctive explanations of mechanisms for controlling stress. Much more research is necessary to provide a better understanding of which mechanisms actually operate and are effective in practice.

Need of the Study  Employee are the back bone of every company now a days each and every organization concentrate on how satisfy focus on their stress in need of employees to retain them.  If the employees feel stress in working they may switch over from one job to another job. So my study focused on the research for stress in their job and also helps to reduce the stress.  The need for this study provides information about the stress and how it affects the employees physically and mentally.  This study can helpful to the management to reduce stress level of the employees by the suggestions and recommendations prescribed in the project.  The employees in sugar mill face stress due to dust and working condition it’s important to access the stress level and take steps to minimize them the researcher takes this task has is her need for the study.

Objectives of the Study Primary Objective  A study on stress management towards Chengalrayan Co-op Sugar Mill Society Ltd

Secondary Objective  To undergo an in-depth study about the stress among the employees of Chengalrayan Co-op Sugar Mill Society Ltd.  To identify the factor causing stress among the employees.  To find out the level and kind of stress among the employees of different age groups.  To study about the effects of stress on employees in Chengalrayan Co-op Sugar Mill Society Ltd.  To find out different types of stress.

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Scope of the Study  The study belongs to Human Resources Management (HRM) area in management science It covers the individual part in personnel management.  Every person experiences some level stress, this affects his productivity .The study covers how stress created what are its symptoms and how employees cope up with it.

Limitation of the Study  Even though the employees gave correct information during the structured interview conducted, they gave positive answering the interview.  The investigator intended to cover all areas of stress relevant to the proposed study.  The study results are applicable only to the study period.

Review of Literature Fletcher1988, It has been shown how the further down the skill level in the ‘job chain’ one looks the worse off the mental health of those groups becomes. Further it has also been shown how…. “Conditions of work most adverse to workers” health is to be found in blue collar professions and in some health care positions such as nursing. A common and possibly decisive denominator of these work conditions is that they expose the worker to a combination of high psychological stress and physical workload and a low level of decision latitude.” A study by Brown Et Al1990, examined the relationship between stressful life events and drinking outcome among male alcoholics who had completed an alcohol treatment program. Approximately 40% of the pre-treatment stressors were found to be directly or indirectly related to alcohol use. Results showed that men who returned to drinking after treatment experienced more serve or highly threatening stress before their relapse than men who re Michailidis M. and Georgiou Y.2005, The author focus on the degree of occupational stress that is influenced by the factors like level of education, various patterns of their relaxation and any other habits like drinking or smoking . The implications say that consuming alcoholic drinks is the main factor that determines the degree of occupational stress in an individual. Srivastav A.K.2010, The articles focus on the nature of role that causes stress. It says role performance encounteredthe problems of stress so they should be tried to reduce or eliminated. The nature of role stress was found to be heterogeneous which cannot be dealt with one uniform solution or intervention as a whole. Hence, specific problem related solution or interventions should be adapted for better organizational performance and effectiveness. Gladies J. J. & Kennedy V2011, The author revealed a significant correlation between Organizational Climate and Job Stress among the women working in IT companies of India. According to him, learning how to manage stress is a very crucial issue that should be developed in IT companies so that they can reduce or eliminate the causes of stress and poor working environment. Sinha V. and Subramanian K.S.2012, The study highlights that various levels of organization experience different kind of organizational role stress. It also states that stress is influenced by various factors like shortage of resources, inadequacy within a person, and overload with a role, stagnation of a role and isolation and expectation of a role.

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Charu M.2013, He in his study stated that higher stress is directly proportional to quality of work life for IT professionals. He outlined few factors namely fair pay structure, steady role demands, supervisory support, congenial job environment, capability fit of the job, role autonomy and stress that directly affect the quality of work life. The main reason of stress amongst the associates of IT industry is the rapid change in technology. Khalid A.2012, There is a direct relationship between stress and job performance in any organization. To improve the performance of an individual in an organization an employee should receive good support from their leaders. Hence, a supportive leader can improve the performance of an employee even at unfavorable situations.

Research Methodology Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. The scope of research methodology is wider than that of research methods. When we talk of research method but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique.

Type of Research Descriptive Research: Descriptive research design is used for this study. It describes the state of affairs as it exists at present. Descriptive research includes surveyors’ and fact-finding inquires of different kinds. Types of Data Used: In this study the researcher has used primary data and secondary data. Primary data: Primary data is the information collected in the process of investigation and primary data here refers to the information obtained from respondents through structured undisguised questionnaire Secondary Data: Secondary data refers to the compiled from the available sources such as newspaper, magazines, books, documents, manuals, websites, and journal. Data Collection Tools: Data was collected with the help of questionnaire items like personal details such as age, gender, education, department, and income and various question to know there level and factor of stress. In this study the researcher used survey method and questionnaire method. Sampling Procedure: Sampling procedure is the researcher must decide the type of sample he will use i.e., we must decide about the technique to be used in selecting the items for the sample. In fact this technique or procedure stands for the sample design itself. Sampling Techniques: The sampling method adopted for this study was CONVENIENCE sampling. Convenience sampling (sometimes known as grab or opportunity sampling) is the method of choosing items in an unstructured manner from the population frame. Though almost impossible to treat rigorously, it is the method most commonly employed in many practical situations. This is due largely to the fact that when most researchers aim to study the behaviors of human beings, very rarely does one find an ideal environment for carrying out that research. It may be that if not for the convenience sample, a particular type of research could simply not take place.

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Sample Size: A sample means a thing or a person which is taken for the research purpose. The sample size used in the project is 70 respondents. Sample Area: The customer were taken as the sampling unit to conduct the survey for various levels of customer in Chengalrayan Co-Op Sugar Mill Society Ltd, Periyasevalai at VILLUPURAM Tools for Analysis: Analysis is the process of placing the data in an order from and extracting the meaning from them in other word analyses is the question. "What message is conveyed by each group of data"? The raw data become information, only when they are analyzed and when put in a meaning form following are the tools used for analyzing and interpretation the data collected. The researcher has used the following tools for analyzing the data 1) Chi-square 2) Correlation SPSS v.20 has been used for analysis the data.

Data Analysis Table Ages of the Respondents Sources: Primary Data Particular Frequency % Explanation Below 25 17 17.0 The above table shows that 17% of the respondents 26-35 26 26.0 are age group of below 25, 26% of the respondents are 36-45 36 36.0 age group of 26-35, 36% of the respondents are age Above 45 21 21.0 group of 36-45 & 21% of the respondents are age group of Total 100 100.0 above 25. Interpretation : Most of the respondents belong to the age group of 36-45

Table Salary of the Respondent [Per Annum] Sources: Primary Data Particular Frequency % Explanation Below 1 lakh 22 22.0 The above table shows that 22% of the 1 to 2 lakh 52 52.0 respondents are below 1 lakh incomw, 52% of the Above 2 lakh 26 26.0 respondents are 1 to 2 lakh income, 26% of the Total 100 100.0 respondents above 2 lakh income. Interpretation: Most of the respondents have 1 to 2 lakh

Table Positioning Level of the Respondents Sources: Primary Data Particular Frequency % Explanation Worker Level 72 72.0 The above table shows that 72% of the Supervisory Level 17 17.0 respondents are worker level , 17% of the Manager Level 11 11.0 respondents are supervisory level , 11% of the Total 100 100.0 respondents are manager level Interpretation : Most of the respondents are worker level

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Table Education Levels of Respondents Sources: Primary Data Particular Frequency % Explanation Higher Secondary Level 30 30.0 The above table shows that 30% of the Under graduate 18 18.0 respondents are higher secondary level, Post graduate 5 5.0 18% of the respondents are UG , 5% of the Diploma/ITI 47 47.0 respondents are PG & 47% of the Total 100 100.0 respondents are diploma / ITI. Interpretation : Most of the respondents are diploma / ITI education

Chi-Square

Null Hypothesis [H0]: There is no significant between age of the employees and employees how to overcome the stress.

Alternative Hypothesis [H1]: There is significant between age of the employees and employees how to overcome the stress

Age of the Employees * To Overcome the Stress Cross tabulation

To Overcome the Stress

Total

with

Walk

Music

Take a Take a

Exercise

Children

Listening

Meditation Spend time Count 0 0 17 0 0 17 Below 25

Expected Count 2.2 5.4 5.4 2.6 1.4 17.0 Count 13 0 10 3 0 26 26 to 35 Expected Count 3.4 8.3 8.3 3.9 2.1 26.0 Count 0 32 4 0 0 36 36 o 45

Age ofthe Expected Count 4.7 11.5 11.5 5.4 2.9 36.0 Employees Count 0 0 1 12 8 21 Above 45 Expected Count 2.7 6.7 6.7 3.2 1.7 21.0 Count 13 32 32 15 8 100 Total Expected 13.0 32.0 32.0 15.0 8.0 100.0 Count Chi-Square Tests Value df Asymp. Sig. (2-sided) Pearson Chi-Square 191.688a 12 .000 Likelihood Ratio 186.053 12 .000 Linear-by-Linear Association 13.134 1 .000 N of Valid Cases 100 Inference The table reveals that the calculated chi-square value is more than the table value (3.84) and the result is rejected at 5% level. Hence the null hypothesis is rejected. There is significant between age of the employees and employees how to overcome the stress

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Finding, Suggestion & Conclusion Finding  Most of respondents are belongs to 36-45 age group.  52% of respondents have income of 1-2 lakhs.  Most of respondents are belongs to worker level.  Majority of respondents completed Diploma/ITI.  34% of the respondents felt working condition of the organization is Neutral.  Most of the respondents’ opinion about training programs conduction by organization is better.  Most of the respondents feel job always Routine.  33% of the respondents Undecided towards overload of work.  Majority of the respondents mentally suffer during work.  38% of the workers felt Moderate stress.  Majority of the respondents Physical inconvenience due to stress in job.  36% of the respondents have High Blood Pressure inconvenience due to job.  Most of the people do Meditation and Listening Music to overcome the stress.  Majority of the respondents agree with yoga and Meditation will reduce stress.  Majority of the respondents said organization take suitable strategy to manage stress.  41%of the respondents said effective Training and development programs could adopt to manage stress.  23% of the respondents always feel stress.  Most of the respondents for their stress are family problem.  Majority of the respondents agree to spending time with family and friends reduces stress.  34% of the respondents feel insecure towards working environment.  34% of the respondents not able to spend time with family after work.  Most of the respondents strongly agree in work too many deadlines that are difficult to meet.  Majority of the respondents sometimes face stress situation in organization.  Majority of the respondents not take leave due to stress  31% of the respondents said yearly company provides recreation activity to reduce stress.  Most of the respondents would enjoy less meeting at workplace.

Suggestion  Most of the employees are favors to the organization.  Organization should take care of their employees to overcome the stress.  Same size is limited  Due to bias, some workers may give wrong details.  Most of the employees felt their working environment is insecure, so the organization has to provide any safety measure for the employees.  Some of the stress management causes comprise of a package program consisting of:  Positive outlook towards works/responsibility  Self-analysis through personality type testes.  Inter personal skill development  Protection yoga come mediation

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 Time management  Since T&D job related factors, performance appraisal & job satisfaction were perceived stressful by the employees, the employees should be counseled regarded the matter.  At the individual level the employees could practices a relaxing holiday (where in quality time is spent with the family) every fortnight or mouth.  Realize excessive use of tea/coffee cigarette is not answer to stress  Try to get 6-7 hours of continuous sleep per day.

Conclusion Stress in the work place has become the black plague of the present century. Much of the stress at work is caused not only by work overload and time pressure but also by lack of rewards and praise, and more importantly, by not providing individuals with the autonomy to do their work as they would like. This was done using a detailed questionnaire. Organization must begin to manage people at work differently, improve physical work environment, treat them with respect and value their contribution. If we enhance the psychological well-being and health of the employees, the organizational revenue increases and there is employee retention as well. Because it is said that “A Healthy Employee is a Productive Employee”

References 1. Bradley D. (2000), Hyperventilation Syndrome, Kyle Cathie Ltd. 2. Chaitow L., Bradley D., Gilbert C. (2002), Multidisciplinary Approaches to Breathing Pattern Disorders, Churchill Livingstone. 3. Davis M. (2000), the Relaxation and Stress Reduction Work Book, New Harbinger inc. 4. Health and Safety Executive Help on Work Related Stress: a short guide. http://www.hse.gov.uk/pubns/indg281.pdf 5. International Stress Management Association, Stress News April 2002 vol. 14 No 2. 6. Jones H. (1997), I'm too busy to be Stressed, Hodder and Stoughton. 7. OHara V. (1995), Wellness at Work, New Harbinger inc. 8. Posen D. (1995),Stress Management for Physician and Patient, web article, http://www.mentalhealth.com/mag1/p51-str.html 9. Powell T.J. Enright S.J. (1993), Anxiety and Stress Management, Routledge 10. Simmons M., Daw W. (1994), Stress, Anxiety, and Depression: a Practical Workbook, Winslow Press. 11. Steinmetz J. (1980), Managing Stress Before it Manages You, Bull Publishing.

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A STUDY ON EFFECTIVENESS OF RECRUITMENT AND SELECTION PROCESS, SPI TECHNOLOGIES, PUDUCHERRY

Dr. M. Veeramuthu Assistant Professor and Head, Department of Commerce Saraswathy College of Arts and Science, Olakkur, Tindivanam

Abstract “A Study on Effectiveness of Recruitment and Selection Process” in SPI technologies was used to study the existing recruitment and selection process and various factor involved in it. Both primary and secondary sources were used to collect data. The primary data is collected from both employers and employees of SPI technologies through a well-constructed questionnaire. The secondary data was collected from various journals, magazines, articles, various sites and company records. From the analysis it was inferred that the organization gave preference to internal sources rather than external sources. Some of the employees felt that the company would still fasten the process. From the study it was found that the employers and employees are satisfied with their present recruitment and selection process

Introduction Recruitment and selection process is a crucial factor in any organization for selecting the right person for the right job. The study intends to find how effectively recruitment and selection process followed in the organization. The study on effectiveness of recruitment and selection process provides the organization to know how effectively the process is going on because attrition rate is one of the major factors in call centers.

Review of Related Literature Recruitment refers to the process of finding possible candidates for a job or function, usually undertaken by recruiters. It also may be undertaken by an employment agency or a member of staff at the business or organization looking for recruits. Advertising is commonly part of the recruiting process, and can occur through several means through online, newspapers, using newspaper dedicated to job advertisement, through professional publication, using advertisements placed in windows, through a job center, through campus interviews, etc.  Employing the right staff is an important human resource challenge faced by all employers.  Recruitment is an expensive business, which includes the cost of advertising and the cost of current employees’ time interviewing and selecting the right candidate.  Good recruitment and selection can result in:  Reduced labour turnover  Reduced absence  Reduced stress levels  A recruitment process should be:  Efficient - cost effective in method and sources  Effective - producing enough suitable candidates  Fair - ensuring that decisions are made on merit without discrimination.

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Recruitment and Selection Recruitment is the process of identifying and attracting a group of potential candidates from within and outside the organization to evaluate for employment. Once these candidates are identified, the process of selecting appropriate employees for employment can begin.

Recruitment and Selection Practices Better recruitment and selection strategies result in improve organizational outcomes. The more effectively organizations recruit and select candidates, the more likely they are to hire and retain satisfied employees.

Objectives  To study the existing recruitment and selection process the organization is using.  To study various factors involved in recruitment and selection process.  To study the methods and techniques used in recruitment and selection process.  To study and identify how the present process affect organizational outcomes.\  To find employers and employees opinion about present process and provide a suggestion for improvement.

Research Methodology Data Collection: Primary data Primary data are collected afresh and for the first time. It is the data originated by the researcher specifically to address the research problem. In this study, primary data is collected primarily to understand the existing recruitment and selection process the organization is using. Secondary Data Secondary data is collected from internet, registers, records, journals, articles, magazines and annual reports of the organization

Data Collection Instrument Questionnaire Design begins with an understanding of the capabilities of a questionnaire and how they can help in research. If it is determined that a questionnaire is to be used, the greatest care goes into the planning of the objectives.

Data Sampling Data sampling process includes the following steps that are sequentially shown  Define the Target Population  Define the Sampling frame  Determine the sample size  Execute the sampling process

Sample Size Design It refers to the number of elements to be included in the study. A sample design is a definite plan for obtaining a sample from a definite population. It refers to the technique or the

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procedure the researchers would adopt in selecting items for the sample. It is determined before data is collected. In this study  50 samples are collected from the employers.  50 samples are collected from employees.

Sampling Process Convenience Sampling: A convenience is obtained by selecting ‘convenient’ population units. The method of convenience sampling is also called the chunk. A chunk refers to that fraction of the population being investigated which is neither by probability nor by judgment but by convenience.

Tools for Analysis  Percentage Analysis  Chi-square analysis  Correlation  F-test

Percentage Analysis In percentage analysis, charts like bar chart and pie charts are used to graphically represent the results from percentage analysis of the questionnaire

Chi-Square Analysis The chi-square is one of the most widely used non-parametric tests in statistical work. The Chi-Square was first used by Karl Pearson in the year 1900. It is defined as x2= Σ [O-E] 2/E

Chi-square test is applicable to a very large number of problems in practice. With the help of this test we can find out whether two or more attributes are associated or not.

Correlation Correlation analysis deals with the association between two or more variables. Correlation does not necessarily imply causation or functional relationship though the existence of causation always implies correlation. By itself it establishes only co variation. In this research rank correlation was used. The formula used to Finn rank correlation is R= 1- 6 Σ D2 / N3 -N

F-Test F-test is used to find out whether the two independent estimates of population differ significantly or whether the two samples may be regarded as drawn from the normal populations having the same variance.

2 2 F is defined as F= S1 / S2

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Data Analysis and Interpretation Respondents Based on Years of Experience S.No Years Respondents % Inference 1 0-2 years 34 68 34 respondents belong to 0-2 years of 2 3-5 years 14 28 experience, 14 respondents belong to 3-5 years of experience and 2 respondents belong to 6-8 years of 3 6-8 years 2 4 experience. Total 50 100

Respondents Based on Years of Experience

80

70 P e 60 r 50 c e 40 0-2 years n 3-5 years t 30 6-8 years a 20 g e 10

0 Years of experience

Employee’s Preference of Sources That Reaches Soon S.No Sources Respondents % Inference 1 Newspaper 19 38 38% of employees said that 2 Journals/Periodicals 4 8 newspaper source reaches them soon, 3 Campus Recruitment 10 20 8% of employees said that 4 Employee Referral 17 34 journals/periodicals reaches them soon, Total 50 100 20 of employees said that campus recruitment reaches them soon and finally 34% of employees said that employee referral reaches them soon.

Employee’s Preference of Sources That Reaches Soon

40

35 P Newspaper e 30 Journals/Magazines r 25 c Campusrecruitment e 20 Employee Referral n 15 t a 10 g e 5 0 Sources

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Employee’s Opinion about Response after Recruitment S.No Response Respondents % Inference 1 Satisfied 44 88 44 respondents are satisfied with the 2 Not Satisfied 6 12 response given after recruitment and 6 respondents are not satisfied with the response Total 50 100 given after recruitment

Employee’s Opinion about Response after Recruitment

100

90 P e 80 r 70 c 60 Satisfied e 50 Not Satisfied n 40 t 30

a 20

g 10 e 0 Response

Classification about the Recruitment Sources Organization Use Mostly S.No Sources Respondents % Inference 1 Newspaper sources 15 30 15 respondents said that their 2 Journals 7 14 organization uses newspaper source 3 Campus Recruitment 4 8 mostly, 7 respondents said that their 4 Employee Referral 19 38 organization uses journals, 4 5 Consultancies 5 10 respondents said that their organization Total 50 100 uses campus recruitment, 5 respondents said that they use consultancies and finally 19 respondents said that their organization uses employee referral mostly.

Classification about the Recruitment Sources Organization Use Mostly

40

P 35 e Newspaper source 30 r Journals/Periodicals c 25 Campus Recruitment e 20 n 15 Employee Referral t a 10 Consultancies

g 5 e 0 Sources

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Employees Opinion about Final Satisfaction S.No Opinion Respondents % Inference 1 Satisfied 21 42 42% of employees are satisfied with the 2 Highly Satisfied 13 26 present process, 26% of employees are highly satisfied with the present process, 3 Dissatisfied 5 10 10% of employees are dissatisfied with the 4 Highly dissatisfied 4 8 present process, 8% employees are highly 5 No opinion 7 14 dissatisfied with the present process, and Total 50 100 14% employees said that they have no opinion about the process.

Employees Opinion about Final Satisfaction

satisfied Highly satisfied Dissatisfied Highlydissatisfied No opinion Final opinion about the process

Findings of the Study  A majority of the respondents prefer to post their resume through company web sites and job sites.  The percentage analysis shows that the organization relies heavily on internal sources.  Most of the employees said that a newspaper source reaches them soon.  A majority of employees inferred that they are satisfied with the response given after recruitment.  Most of the employees said that the final decisions about appointment should be based only on merit.  A majority of employers inferred that there organization is following a step by step process with certain rules and regulations in identifying job vacancies.  The percentage analysis shows that the organization is conducting job analysis and job description for each job position.  A majority of employers said that there organization using newspaper and employee referral sources mostly.  Most of the employers inferred that they are measuring the cost for the recruitment sources by comparing the validated budget versus approved budget.  The correlation analysis shows that the questions asked in the interview and comfortableness with the interviewer is positively correlated.

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 Most of the employees are satisfied with the present recruitment and selection process.  A majority of the employers inferred that the present recruitment and selection process is effective.

Suggestions and Recommendations  From the study, it is found that majority of the employees prefer to post their resume in companies website. So the company can have exclusive career link in its website to post resume.  By using a separate link with resume screening , the resumes can be screened and managed effectively.  From the study, it is found that newspaper is the effective medium to advertise for recruitment. Since this company focus on candidates from Pondicherry, they can advertise for mass recruitment.  Relocation is the main problem for a candidate’s rejecting an offer. So by providing a good salary and accommodation, relocation problem can be solved. Thus the recruitment process can be made effective by retaining the recruited candidate.  Some of the employees said that the response given after recruitment is not satisfactory. If the recruitment feedback mechanism is not effective, there is high risk of losing good candidates to other companies. So they can give the response for candidates immediately whether they are short listed or rejected.  It is found that the company is not conducting the medical examination for employees during selection process. They can conduct medical examination in order to prevail themselves if any problem happens to the employees.

Conclusion This project “A Study on Effectiveness of Recruitment and Selection Process” was helpful to know about the recruitment and selection process in E-Publishing Company. This study inferred that most of the employers and employees are satisfied with the present process. This study was helpful to study the sources of recruitment and selection techniques & methods used. The study on recruitment and selection is more an ART rather than a process HR professional is having a big responsibility to hire a best person from the available talent pool. At the same time, one needs to be cost conscious. The employer should judge on individual merits and set the same standards for all. In the present scenario, “It is the biggest challenge for a HR manager to hunt for talent.”

Limitations  The entire study applies only to the specific concern.  The period for study is one month, so the detailed analysis about the process is difficult.  The study was made only with limited number of samples.  The respondents may give false information.

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Scope for Further Study  The Project throws light on the need for learning about recruitment and selection process.  This study will be useful to find out the sources and techniques used in the recruitment and selection process.  It will be helpful for the company to know the effective sources and techniques in recruitment and selection process.

References Books Referred 1. Christopher Mabey, “Strategic Human Resource Management” – Edition 1. 2. K. Aswathappa, “Human Resource and Personnel Management” – Edition 1. 3. Donnelly , “Managing Human Resource” – Edition 1 4. Statistical methods by S.P.Gupta

Sites Visited 1. www.spi.com 2. www.citehr.com 3. www.explorehr.com

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E-COMMERCE AND OVER VIEW

J. Kalai Selvi M.Phil. (Full Time Scholar), A.A.G A. College, Villupuram

Abstract Growth of e-commerce trends is becoming more popular day by day as per the market demand. This is actually carrying us to the new innovative world which eventually saves lot of time and money as well because of the attractive features provided by the online market. This paper gives an overview of the applications and future of ecommerce and discusses the various factors that are important for the growth of Ecommerce in India. According to the present scenario we can Imagine the growth of overall E-commerce that will increase with the emerging market of India. This paper is outcome of a review of various research studies carried out on Ecommerce. With developments in the Internet and Web-based technologies, distinctions between traditional markets and the global electronic marketplace-such as business capital size, among others-are gradually being narrowed down. The ecommerce sector in India is estimated to have hundreds of players. To capture a larger pie of the growing Indian ecommerce market, most of these entailers are constantly innovating, increasing their offerings and providing better deals. Keywords: E-commerce, online shopping, growth of ecommerce

Introduction Electronic commerce, or ecommerce, refers to economic activity that occurs online. Ecommerce includes all types of business activity, such as retail shopping, banking, investing and rentals. Even small businesses that provide personal services, such as hair and nail salons, can benefit from ecommerce by providing a website for the sale of related health and beauty products that normally are available only to their local customers. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. The buying and selling of products, services by business and consumers through an electronic medium, without using any paper documents People today can shop literally everywhere within minutes, be it their workstations or homes, and most importantly, at any time of the day at their leisure. The online market space in the country is burgeoning in terms of offerings ranging from travel, movies, hotel reservations and books to the likes of matrimonial services, electronic gadgets, fashion accessories and even groceries. Electronic Commerce is more than just buying and selling products online.

History of E commerce Electronic Commerce refers to all value transactions involving the transfer of information, products and services or payments via electronic networks. Electronic Commerce is recently a new mode of conducting business and its history can be traced back to1960s.Ecommerce is the delivery of goods, services, information, or payments over computer networks or by any other electronic means .Ecommerce is the application of technology which helps in increase in business transactions and work flow .It also helps cut service costs which improve the quality of goods and increase speed of service and internet transaction

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Objectives of the study 1. To study about the advantages of electronic commerce on marketing. 2. To analyze the growth of ecommerce and online shopping. 3. To study about the traditional commerce and ecommerce.

Methodology The study is based on secondary data collected from reputed articles of research journals, books, prominent sites, reports sets, relevant to ecommerce articles. The study is all about to focus on all aspects of ecommerce in India.

Traditional Commerce v/s E-Commerce Traditional Commerce E-Commerce Heavy dependency on information Information sharing is made easy via exchange from person to person. electronic communication . The Manual intervention is required for each Communication or transactions can be done communication or transaction. completely automated. It is difficult to establish and maintain No uniform platform for information standard practices in traditional sharing, as it depends heavily on commerce. Personal communication. Communications of business depends In e-commerce, there is no human upon individual skills. intervention Unavailability of a uniform platform, E-commerce websites provide the user a as traditional commerce depends platform where all the information is heavily on personal communication. available at one place. No uniform platform for information E-commerce provides a universal platform sharing, as it depends heavily on to support commercial/business activities personal communication. across the globe.

Reasons behind the Growth of E –Commerce  Busy Lifestyle The lifestyle of people is so busy that they are unable to go to the crowded markets every time for shopping. The customers prefer to shop in a relaxed environment at their own convenience  High Disposable Income: With growing job opportunities the income sources have also increased. Because of high spending power, customers are willingly able to pay for the products online.  Awareness of Products People are much more aware nowadays regarding the products available in the markets. They are quite aware about new products, product features, availability, price etc. through the help of media like television, radio, newspaper etc. Because of these reasons they feel confident while shopping online.  Rising Computer Educational Level Due to the efforts of Government and Private Educational Institutions in India, computer education is getting new horizons. People are much more aware regarding the tools and

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techniques of computers. Not only students of urban areas, students of rural areas, housewives and business persons are also attracted towards the advance technologies of computer like e – commerce and e– business. With the development of educational standards there is automatically great demand to buy and use new products.  Increase Usage of Internet With more than 100 million Internet users, the country is beginning to achieve a critical mass of users who are familiar with web services. In addition, over the past few years, relatively sophisticated online travel agents (“OTAs”), such as Make My Trip – which started turning these initial Web users into Web consumers – have dominated Indian e-commerce. Saves Money–One another reason for adapting e- Commerce and online shopping technology is that the unwanted expenditure of petrol, parking and toll etc. is considerably reduced.  Easy to Find the Review of Products It is quite easy to find the review of products by the help of online shopping. ecommerce has made it simpler to get information regarding the product and the customers can purchase the products after getting reviews and feedback of the product.

The Advantages of E-Commerce can be Broadly Classified into Three Major Categories  Advantages to Organizations  Advantages to Consumers  Advantages to Society

Advantages to Organizations Using e-commerce, organizations can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers, and suitable business partners across the globe.  E-commerce helps organizations to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.  E-commerce improves the brand image of the company.  E-commerce helps organizations to provide better customer service.  E-commerce helps to simplify the business processes and makes them faster and efficient.  E-commerce reduces the paper work.  E-commerce increases the productivity of organizations. It supports "pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way.

Advantages to Customers  It provides 24x7 support. Customers can enquire about a product or service and place orders anytime, anywhere from any location.  E-commerce application provides users with more options and quicker delivery of products.  E-commerce application provides users with more options to compare and select the cheaper and better options.  A customer can put review comments about a product and can see what others are buying, or see the review comments of other customers before making a final purchase.  E-commerce provides options of virtual auctions.

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 It provides readily available information. A customer can see the relevant detailed information within seconds, rather than waiting for days or weeks.  E-Commerce increases the competition among organizations and as a result, organizations provides substantial discounts to customers.

Advantages to Society  Customers need not travel to shop a product, thus less traffic on road and low air pollution. E-commerce helps in reducing the cost of products, so less affluent people can also afford the products.  E-commerce has enabled rural areas to access services and products, which are other wise not available to them. E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner.

Disadvantages  Return-on-investment is difficult to calculate.  Many firms have had trouble recruiting and retaining employees with the technological, design, and business process skills needed to create an effective electronic commerce presence.  Difficulty of integrating existing databases and transaction-processing software designed for traditional commerce into the software that enables electronic commerce.  Many businesses face cultural and legal obstacles to conducting electronic commerce.

Categories of e-commerce E commerce utilizes information and communication technologies to carry out market transactions among two or more parties usually businesses and consumers .At times one of these parties may be the government as well .Although in general we may treat the governments a business entity, in much of the situations, it is a special kind of business that may operate with its own set of rules an deregulations. Based upon the entities involved in a transaction, E commerce has been classified in these categories.

Business-To-Business e-commerce The largest category of e-commerce is business-to business (B2B) commerce. This involves companies conducting e-procurement, supply chain management, network alliances, and negotiating purchase transactions over the internet. Businesses use e-commerce to lower transaction costs of conducting business and to make savings in terms of time and effort when conducting business.

Business-To-Consumer E-Commerce Business-to-consumer (B2C) e-commerce involves businesses introducing products and services to consumers via internet technologies. This includes companies selling software and hardware through the internet, taking orders for products that are subsequently delivered to the consumer, and providing digital services such as online magazines and search engines.

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Business Processes Business process refers to the use of e-commerce to tailor the internal activities of a business in order to maximize their efficiency and effectiveness. Through the use of e-commerce, businesses can fine-tune supply chains, provide advanced consumer relations management systems, and reduce transaction costs.

Consumer-To-Consumer E-Commerce Consumer-to-consumer (C2C) e-commerce is concerned with the use of e- commerce by individuals to trade and exchange information with other individuals. There has been a huge growth in consumer-to consumer auctions sites such as e-Bay and sites enabling consumers to offer goods and services to other consumers on an individual basis.

Business-To-Government e-commerce Business-to-government (B2G) e-commerce is concerned with the need for business to sell goods or services to governments or government agencies. Such activities include supplying the army, police force, hospitals and schools with products and services .Further, businesses will often compete in an online environment for contracts to provide services to the public on behalf of the government. Such services may include the collection of taxes, and the supply of public services.

Conclusion Growth of E-Commerce depend to a great extent on effective IT security systems for which necessary technological and legal provisions need to be put in place and strengthened constantly. While many companies, organizations, and communities in India are beginning to take advantage of the potential of ecommerce, critical challenges remain to be overcome before e-commerce would become an asset for common people. With the explosion of internet connectivity through mobile devices like Smartphone and tablets, millions of consumers are making decisions online and in this way enterprises can build the brand digitally and enhance productivity but government policies must ensure the cost effective methods/solutions.

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THE IMPACT OF FIRM SIZE ON DIVIDEND BEHAVIOUR OF CORPORATE FIRMS IN INDIA

P. Veeramuthu, M.Com, M.Phil., B.Ed., PGDCA., Assistant Professor, PG & Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts, Science College, Mailam, Tamil Nadu, India

S. Kannan, M.Com., PG & Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts, Science College, Mailam, Tamil Nadu, India

Introduction From the practitioners’ viewpoint, DP of a firm has implications for investors, managers and lenders and other stakeholders. For investors, dividends – whether declared today or accumulated and provided at a later date - are not only a means of regular income, but also an important input in valuation of a firm. Similarly, managers’ flexibility to invest in projects is also dependent on the amount of dividend that they can offer to shareholders as more dividends may mean fewer funds available for investment. Lenders may also have interest in the amount of dividend a firm declares, as more the dividend paid less would be the amount available for servicing and redemption of their claims. However, in a perfect world [Modigliani and Miller (1961)], investors may be indifferent about the amount of dividend, as it has no influence on the value of a firm. Any investor can create a ‘home made dividend’ if required or can invest the proceeds of a dividend payment in additional shares as and when a company makes dividend payment. Similarly, managers may be indifferent as funds would be available or could be raised without any flotation costs for all positive net present value projects. But in reality, dividends may matter, particularly in the context of differential tax treatment of dividends and capital gains. Very often dividends are taxed at a higher rate compared to capital gains. This implies that dividends may have negative consequences for investors. Similarly, cost of raising funds is not insignificant and may well lead to lower payout, particularly when positive net present value projects are available. Apart from flotation costs, information asymmetry between managers and outside investors may also have implications for DP. [Myers and Majluf (1984)], in the presence of information asymmetry and flotation costs, investment decisions made by managers are subject to the pecking order of financing choices available. Managers prefer retained earnings to debt and debt to equity flotation to finance the available projects. Several studies have empirically tested the implications of the free-cash flow theory and have had mixed results. Lang and LitzenBerger (1989) partition a sample of dividend changes into two groups, those for firms with q values less than one and those for firms with q values greater than one. They found that low q firms have larger abnormal returns than high q firms do, and they interpret the result as consistent with the free cash flow hypothesis. Using an analogous methodology, Howe, He, and Kao (1992) examined a sample of share repurchases and special

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dividends. However, they found no significant difference across low and high q firms. Denis, Denis, and Saran (1994) re-examined a sample of dividend changes, and after controlling for dividend yield, found no significant different between low-and high-q firms.

Statement of the Problems  The present study mainly indicates how far the level of CS affects the DP of corporate firms in India.  Size would appear to be an important factor in determining the dividend behavior of corporate firms.  In India few studies have analyzed the relationship between the size of the firm and it’s DP.

Significance of the Study  The present study attempts to analyze the effect of CS on DP in the selected corporate firms across Industries in India.  Though many research studies had been undertaken in the field of company’s uniqueness and its CS and DP very few studies have been undertaken to analyze the relation between CS and DP.

Scope of the Study The study is an attempt to provide an empirical support to the hypothesized relationship between CS and DP in respect size of corporate firms across industries.

Objectives of the Study  To study the inter-relationship between CS and DP in respect of size of corporate firms across industries in India.  To study the trends in the dividend payout pattern of firms in respect of sources borrowings.  To suggest appropriate measures with respect to the inter-dependence of CS and DP in respect of size of corporate firms.

Hypotheses of the Study 1 H0 “There is no significant relationship between the level of debt in CS and level of equity dividend in Cement sector.” 2 H0 “There is no significant relationship between the level of debt in CS and level of equity dividend in Chemical & Fertilizer sector.” 3 H0 “There is no significant relationship between the level of debt in CS and level of equity dividend in Information Technology sector.” 4 H0 “There is no significant relationship between the level of debt in CS and level of equity dividend in Oil & Gas sector.” 5 H0 “There is no significant relationship between the level of debt in CS and level of equity dividend in Pharmaceutical sector.” 6 H0 “There is no significant relationship between the level of debt in CS and level of equity dividend in shipping sector.” 7 H0 “There is no significant relationship between the level of debt in CS and level of equity dividend in Textile sector.”

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Methodology Sources of Data The study used only secondary data, which are collected from CMIE [Center for Monitoring Indian Economy Private Limited] prowess package. The data collected from this source have been compiled and used as per the objectives of the study.

Sampling Design The study has been made on a 73 sample corporate firms across 7 industries in India, viz. Number of Corporate The industries have been chosen based Industry Firms chosen for the study on stratification in respect of dividend Cement 12 high yielding sectors. The stratification Chemical & Fertilizer 10 process for the choice of corporate IT 8 firms across industries has been Oil & Gas 10 adopted based on asset value of firms, Pharmaceutical 15 i.e., corporate firms whose total assets Shipping 10 value has significantly increasing over Textile 8 the period have been included in the Total corporate firms 73 sample corporate firms, in this way of stratification, the sample corporate firms of 73 have been arrived after giving due consideration for parameters, viz., proper and regular dividend payers to shareholders, and availability of required data for the study period. Further, the sample corporate firms are classified into three groups based on assets value viz., small size firms - firms whose total assets value is up to Rs.100 crore; medium size firms – firms whose total assets value is between Rs.100 crore and Rs.500 crore; large size firms - firms whose total assets value >Rs.500 crore.

Tools Used for Analysis of Data 1. Ratios STD_TA = Short Term Debt / Total Assets X 100 LTD_TA = Long Term Debt / Total Assets X 100 TD_TA = Total Debt / Total Assets X 100 And

2. Descriptive Statistics (a) Arithmetic Mean

X i Mean ( X ) X   n Where - is the arithmetic mean; th Xi - is the i observation; and n – The total number of observations.

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(b) Median (N/2) – F = L + X C f Where L – Is the lower limit of the median class? N – The Total of all Frequencies f – The frequency of the median class; F – The cumulative frequency of the previous class, with reference to the median class; and C – Is the width of class interval?

(c) Mode:

f1 Mode = L + X C

f1 + f2 Where: L – is the lower limit of the model class; f1 – the absolute difference between the frequency of the modal class and that of its immediately preceding class; f2 – is the absolute difference between the frequency of the modal class and of its immediately succeeding class; and C – Is the width of class interval?

(d) Standard Deviation ( )

2  X i 2    (X ) n Where th Xi – is the i observation;

X 1 – The mean of the observation; n – The no. of observations.

2. ANOVA Mean

1, 2, 3, …… k When: there are k samples.

Mean of the sample means

1, 2, 3, …… k = No. of samples (k)

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2 2 2 SS between = n1 ( X 1 - ) + n2 ( 2 - ) + …… + nk ( k - )

SS between MS between = (k – 1) Where (K –1) represents degrees of freedom (d.f.) between samples.

2 2 2 SS within = (X1i - 1) + (X2i - 2) + …..+ (Xki - k) i = 1, 2, 3,…. SS within MS within = (n – k) Where (n –k) represents degrees of freedom (d.f.) within samples, n = total no. of items in all the samples i.e., n1 + n2 + … + nk k = no. of samples.

2 SS for total variance =(Xij - ) i = 1,2,3,…

SS for total variance = SS between + SS within. The degrees of freedom for total variance will be equal to the number of items in all samples minus one i.e., (n – 1). (n – 1) = (k – 1) + (n - k) Finally, F – ratio may be worked out as under: MS between F – Ratio = MS within

Correlation Coefficient (Karl Pearson’s Coefficient of Correlation)  (X - ) (Y – Y) = r = √  (X - )2√  (Y – Y) 2 The of significance of the correlation coefficient r = √ (1 – r)2 (n – 2)

Degrees of freedom = (n – 2) Correlation analysis is carried to find out the existence of multi-co linearity among independent variables, in order to decide what variables can be used in regression model, or how regression model with all independent variables can be used.

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OLS Regressions Here, impact of capital structure variables (leverage) on dividend policy measures - dividend pay-out (Net dividend paid / net income) in the presence of some basic fundamental variables considered to be the determinants of dividend policy using multiple regression technique (OLS method). Before using OLS method, degree of relationship among independent variable as well as between independent and dependent variables were analysed with Pearson- product moment correlation. It is decided to use regression technique with stepwise procedure, if there is any co linearity among some independent variables. The specification of the regression model is given below:

DPO =  + 1 DPOt-1 +  2 PAT +  3 TDE +  4 CF +  5 SIZE +  6 INV +  7 LTD + 8 STD + e Where, DPO = Dividend pay-out ratio (Dividend Paid / Net Income)

DPOt-1 = Lagged DPO PAT = Profit after Tax (Net Income) TDE = Total Distributable Earnings CF = Cash Flow SIZE = Firm Size (Natural logarithm of Total Assets) INV = Capital Expenditure LTDTA= Long-term debt to Total Assets STDTA= Short-term debt to Total Assets

1 .. 8 = Estimated coefficients = Intercept term e = error.

Chow Test The Chow Test formula is:

[SSEp - (SSE1 + SSE2)] / k

F(k, N1+ N2 - 2k) =

(SSE1 + SSE2) / (N1 + N2 – 2k) Where: SSEp = sum of squared error term for pooled model SSE1 = sum of squared error term for group 1 SSE2 = sum of squared error term for group 2 K =# of estimated parameters (including constant) N1 + N2 = N’s for each of group 1 and group 2, respectively

Period of the Study The data used for the study relate to the selected corporate firms across industries in India for the period of ten years on a yearly basis ranging from to 2015 - 2016.

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Limitations of the Study  The study is limited to only 7 industries. Therefore, this comprises the trend of only a few numbers of industries, which would not be sufficient to totally generalize the inference to the whole of a country.  The data used for the study are secondary in nature. Therefore, the accuracy of the results of analysis is totally dependent upon the reliability and accuracy of secondary data.

Findings of the Study From the analysis of data pertaining to DP and CS, the following findings have been found:  The use of debt fund in CS is inversely related to equity dividend for sample firms under 1 Cement sector. H0 is rejected. [(F = 15.53> p<0.01 for LTD _TA); and (F =13.98> p<0.01 for 1 TD_TA)]. Hence H1 isformulated, as “there is significant relationship between the level of debt in CS and level of equity dividend in Cement sector.”  There is a significant negative impact of debt financing in CS on equity dividend for sample 2 firms under Chemical & Fertilizer sector. H0 is rejected. [(F = 6.74> p<0.01 for LTD _TA), and 2 (F =2.52> p<0.01 for STD_TA), and (F=7.76><0.01 for TD_TA)]. Hence H1 isformulated, as “there is significant relationship between the level of debt in CS and level of equity dividend in Chemical & Fertilizer sector.”  There is a significant relationship between DP and CS of sample firms under IT sector, but 3 the relationship between these factors is non-linear. H0 is rejected. [(F = 8.79> p<0.01 for LTD 3 _TA), and (F =7.60> p<0.01 for TD_TA)]. Hence H1 isformulated, as “there is significant relationship between the level of debt in CS and level of equity dividend in Information Technology sector.”  Percentage of dividend relative to equity is relied significantly upon debt financing inCS through both, short-term and long-term sources for sample firms under Oil & Gas sector. 4 H0 is rejected. [(F = 54.46> p<0.01 for LTD _TA), and (F =11.47> p<0.01 for STD_TA), and 4 (F=18.70><0.01 for TD_TA)]. Hence H1 isformulated, as “there is significant relationship between the level of debt in CS and level of equity dividend in Oil & Gas sector.”  There is a negative relationship between percentage of equity dividend and debt fund in CS 5 through long-term financing among sample firms under Pharmaceutical sector. H0 is

rejected. [(F = 26.68> p<0.01 for LTD _TA), and (F =23.62> p<0.01 for TD_TA)]. Hence 5 H1 isformulated, as “there is significant relationship between the level of debt in CS and level of equity dividend in Pharmaceutical sector.”  There is a positive relationship between dividend pay-out relative to equity and debt fund in 6 CS through long-term financing of sample firms under shipping sector. H0 is rejected. [(F = 6 4.85> p<0.01 for LTD _TA), and (F =4.06> p<0.01 for TD_TA)]. Hence H1 isformulated, as “there is significant relationship between the level of debt in CS and level of equity dividend in shipping sector.”  DP in terms of equity dividend percentage is positively related to LTD financing in CS of 7 sample firms under Textile sector. H0 is rejected. [(F = 3.53> p<0.05 for LTD _TA), and (F 7 =2.71> p<0.1 for TD_TA)]. Hence H1 isformulated, as “there is no significant relationship between the level of debt in CS and level of equity dividend in Textile sector.”

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Conclusion This study examines the impact of firm size on dividend behaviour of corporate firms in India. The study has been carried out on 73 firms by empirically analysing the determinants of DP over a wider testing period from 2015-2016. Dividend behaviour was tested using for the full- Brittain model and its variants on the pooled cross sectional/time series data for the sample of observations from 2015-2016. The models are estimated using the Ordinary Least Square (OLS) method. Dividend stocks are expected to provide a combination of dividend cash flows and capital gains from investors’ view. The preference of shareholders for one or the other should have a powerful influence on decisions regarding dividend payment which leads one to examine the extent to which dividend payments and dividend yields vary significantly across firms, industries and time. Companies are in various sizes and shapes. They could be single- owner enterprises or large multinational corporations with many shareholders cutting across geographical boundaries. The management of each firm normally makes DP, but the nature of the share ownership can play an important role in that decision. The study proves that irrespective of the sector, the relationship between the CS and DP remains constant, i.e in most of the cases the impact of capital structure measures, viz., LTD_TA, STD_TA, and TD_TA on DP is similar. The hypothesis formulated “there is no significant relationship between the level of debt in capital structure and level of equity dividend” has been rejected in almost all the sectors. The inter-correlation matrix among variables in the regression models for various sectors also support that there is impact among the independent variables chosen for the study. The results of the cross-sectional OLS Model for the selected sample firms under various sectors also show that there is a significant effect of selected independent variables, DPO =  + 1 DPOt-1 +  2 PAT +  3 TDE +  4 CF +  5 SIZE +  6 INV

+  7 LTD + 8 STD + e. Therefore, it is concluded that the DP of small size, medium size, large size, and overall corporate firms across industries in India is independent of the level of debt in CSp.

References Books 1. Arthur J Keown David F Scott Jr John D Martin and William Petty J (1986), Basic Financial Management, 3rd Edition, Prentice-Hall of India Private Limited, New Delhi. 2. Bhalla V K (2007), Investment Management, Security Analysis & Portfolio Management, 13th Edition, S Chand & Company Ltd., New Delhi. 3. Eugene F Brigham and Joel F Houston (2001), Fundamentals of Financial Management, 9th Edition, Harcourt Asia PTE Ltd., a Harcourt Publishers International Company, Singapore 4. George E Pinches (1990), Essentials of Financial Management, 3rd Edition, Harper & Row Publishers, New York.

Journals 1. Aigbe Akhigbe Stephen F Borde Jeff Madura (1993), “Dividend Policy and Signaling by Insurance Companies”, the Journal of Risk and Insurance (M),Vol. 60, No. 3, (September), 413-428

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2. Alex Kane Young Ki Lee Alan Marcus (1984), “Earnings and Dividend Announcements: Is There a Corroboration Effect?” The Journal of Finance (M), Vol.39, No. 4, (September), 1091-1099. 3. Allen D E (1991), “The Determinants of the Capital Structure of Listed Australian Companies: The Financial Manager’s Perspective”, Australian Journal of Management (M), Vol. 16, No. 2, (December), 103 – 128. 4. Allen Michel (1979), “Industry Influence on Dividend Policy”, Financial Management, Vol. 8, No. 3, (autumn), 22-26. 5. Anwer S Ahmed Bruce K Billings Richard M Morton Mary Stanford-Harris (2002), “The Role of Accounting Conservatism in Mitigating Bondholder-Shareholder Conflicts over Dividend Policy and in Reducing Debt Costs”, The Accounting Review (M), Vol. 77, No. 4, (October), 867-890.

Websites 1. www.FinanceIndia.com 2. www.Linuxbest.com 3. www.vivisimo.com 4. www.Indianjournals.com 5. www.sciencedirect.com

Magazine 1. Business Today (FN)

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A STUDY ON EMPLOYEE SATISFACTION OF WELFARE MEASURE IN ALUMINIUM FABRICATION UNITS IN PUDUCHERRY

Dr.B.Manivannan, M.Com., MBA., M.Phil., Ph.D., Assistant Professor, Department of Commerce Aringar Anna Government Arts and Science College, Viluppuram

S.Manju, M.Com., B.Ed., M.Phil., Assistant Professor, Department of Commerce C.Kandaswamy Naidu College for Women, .

Abstract This paper is focus on employee satisfaction of welfare measure in aluminium fabrication units in Puducherry. The employee’s satisfaction and their qualities are increase or decrease is based on the welfare measures provided by the organization. So, human resources management is most needful one and also it is very difficult one in the present global business environment. However, management have been adopted various labour welfare measures for the benefits of the employee’s as well improving the efficiencies. Aluminum is currently one of the metals most widely used in the manufacture of various objects. Aluminium products presently most useful in all case like business as well as individual to build a residential building and business building. But, it affects the health of labour and forms a disease due to inadequate welfare measures. However, this paper reveals that Aluminium fabrication units in Puducherry is providing very good welfare measure to its employees, Most of the employees are satisfied with various welfare measures adopted by the Aluminium fabrication units in Puducherry.

Introduction Human Resources Management have very important role in operation of any organization. In and around the world, every organization faces many problems attesting the employee’s satisfaction. Success and failure of the organization depends upon the quality of the employees and facilities that are provided to them. The employees satisfaction and their qualities are increased or decreased is based on the welfare measures provided by the organization. The term welfare suggests that the state of well-being and implies wholesomeness of the human being. It is a desirable state of existence involving the mental, physical, moral and emotional factor of a person. The satisfied labour will be converted into faithful and their acquired skills will help the organisation to survive, grow and capture the new markets. They can provide better customer oriented services and hence retain existing customers. So, human resources management is most needful one and also it is very difficult one in the present global business environment. However, management have been adopted various labour welfare measures for the benefits of the employee’s as well improving the efficiencies.

Definition Labour welfare activities is an industrialized society has far reaching impact not only on the work force but also all the facts of human resources. Labour welfare includes all such activities,

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Importance of Welfare Measures Efforts were made in the 19th and early 20th centuries to improve the working conditions of factory workers. The welfare work movement became widespread during 1915 and 1920 welfare work, scientific management (SM) is attempt at a more systematic approach to labour problem. It has been defined as anything done for the comfort and improvement, intellectual or social of the employee’s over and above wages paid, which is not a necessity of the Industry, non-required by law. The primary purposes of welfare work included.  The Averting of Industrial conflict and unionization,  The promotion of good management and work relations.  The efforts to increase workers productivity and reduce turnover. Globalization Liberalization provided conditions that resulted in the wide spread recognition, of the need for HRM and the emergence of the field as a profession. The HRM is attention to the need for “Scientific personnel Administration” and centralizing under a personnel direction activities promoting the welfare and efficient of workers.

Welfare Provisions under the Factories Act, 1948 The Factory Act, as amended by the latest amendment in the year, 1987 makes elaborate provisions in relation to health, safety, and welfare of workers, provisions regarding working hours including weekly hours, daily hours, weekly holidays, regarding employment of young persons, annual leaves with wages and provision for employment of women and young persons. Under the Chapter on Welfare, provisions have been made in connection with washing facilities in the factories, facilities for storing and drying clothing, facilities for sitting for all workers obliged to work in a standing position in order that they may take advantage of any opportunities for rest which may occur in the course of their work. The Act also provides first aid appliances to be maintained in every factory and for an ambulance room of the prescribed size in case of those factories where in more than 500 workmen are ordinarily employed. The State Governments have been empowered to make rules requiring that in any specified factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained for the use of workers. The Act further provides for shelters, rest rooms and lunch rooms in every factory employing 150 workmen or more. In case of factory employing more than 30 women workers a crèche is to be maintained for the use of their children below 6 years of age. In addition to The Factories Act, 1948, conditions of work are covered by a number of other legislations. They are as follows.

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1. The Minimum Wages Act, 1948. 2. The Payment of Wages Act, 1936. 3. The Equal Remuneration Act, 1976. 4. The Industrial Disputes Act, 1967. 5. The Industrial Employment (Standing Orders) Act, 1946. 6. The Payment of Bonus Act, 1965. 7. The Workmen's Compensation Act or death-related Act 1923. 8. The Employee's Provident Funds and Miscellaneous Provisions Act, 1952. 9. The Payment of Gratuity Act, 1972. 10. The Maternity Benefit Act, 1961. The above act was provided and prevented employee welfare as well as health during the working hours and after working hours specifically, they are focused under below. 1. The health of workers. 2. The safety of workers. 3. The welfare of workers. 4. The Industrial conflict and unionization. 5. The promotion of good management and worker relation. 6. The efforts to increase worker productivity and reduce turnover. 7. The Appointment of labour welfare office.

Aluminium Fabrication Units in India Aluminum is one of the most abundant elements on Earth (8per cent), after oxygen and . Since it does not occur in its pure form in nature, but rather as various oxides, it must be extracted from ore and produced in specialized foundries known as smelters. Aluminum is currently one of the metals most widely used in the manufacture of various objects. Two tonnes of alumina obtained from 2.6 tonnes of are required to make 1 tonne of aluminum. It is 99 per cent recyclable, which allows for substantial savings in terms of energy and raw materials. Aluminium products presently most useful in all case like business as well as individual to build a residential building and business building. However, in India Aluminium fabrication units produced different types of products like doors, windows, staircase, hand rails and supports, railings for and corridor have become that standard accepted parts of modern building. The use of aluminium product in business and office complexes, building, theatre and auditorium is very extensive for functional as well as decorative purpose. Aluminium production in India commenced in 1938 with the commissioning of Aluminium corporations of India’s (Indal) plant in collaboration with Alcan, Canada having a capacity of 2,500 ton per annum . Subsequently, in India the following companies were started like, in 1959 Hindustan Aluminium Corporation was set up at Renukoot, with an initial capacity of 20,000 ton per annum. Madras Aluminium Corporation, a public sector undertaking was commissioned them in 1965 with a capacity of 10.000 ton per annum following by Balco in 1975. The government decontrolled the industry in 1989 with the removal of the Aluminium control order with subsequent de-licensing the industry in 1991 and allowing the liberal import of capital goods and technologies. The aluminium demand grew at 6 percent in the 80s. Aluminium demand post liberalization registered a growth rate of 12 percent. This lead with the increase in the global aluminium prices ($1800/ton in 1994) led to increased investment in this

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” sector. The downstream capacity in the aluminium industry spurted due to sufficiency duty differential between aluminium ingots or primary metal and value added downstream products. In March 1993 while the duty on aluminium ingots was 25 percent the duty on downstream products was 70 percent. However with the charger in the tariff structure undertaken in the 1997 budget, duty on semi-fabricated metal was lowered to 25 percent. This change adversely affected the fortunes of the downstream producer. Over the last few decades, global and demand for aluminium is mushrooming and it is now the second most widely used metal after Iron & Steel (IAL 2008). Aluminium offers an attractive combination of high specific properties (e.g., strength–to weight) with Corrosion resistance, process ability, and price- attributes which have promoted its widespread adoption. Today, it is not only most intensively used in the packaging and transportation sectors but also promoted to offer energy and environment benefits, like for the light weighting of vehicles, reduction in the Greenhouse gases, etc. After oxygen and silicon, Aluminium is abundantly available in the earth’s crust and deriving the metal from its bauxite ore requires large amounts of energy.

Problems faced by employees of Aluminium Companies The Indian worker as compared with other countries is unhealthy and ill fed. This shows a definite affect over the production potential. Hence, they required great need of inexpensive nutritive food facility in case of hospitalization. An Indian worker is unable to provide a healthy life for his family members. Hence, the labour welfare has much to do in the country. In India, labour union movement is still fighting against the employer to implement labor welfare measures provision. The aluminium product is most useful and gives many benefits to the human life. However, it affects the health of labour and forms a disease which relates mainly four diseases: asthma syndrome, chronic obstructive lung disease, lung cancer and pulmonary fibrosis. ‘Other diseases have also been affected, such as granullomatosis, desquamative interstitial pneumonia and alveolar proteinases (Abramson et al, European Respiratory Journal, 1989). A series of Norwegian studies were carried out in the 1990s establishing a link between pot room asthma and fluoride emissions while North American studies in the 1970s and 1980s failed to find such a link, with the exception of a 2006 study reported below (Lynn Fritschi, University of West Indies Symposium, 2007’.

Analysis of Employee satisfaction The Industrial relations scenario of the company has remained by and large peaceful. There has been almost no man day’s loss due to industrial relations problem due to structure as well as informal interaction with recognized Unions at Units, complex and corporate level are being undertaken in resolving the common issues. The aluminium companies maintain good relation with their employees through better welfare measures. However, the following table explains the level satisfaction of employees regarding welfare measure provided by the companies.

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Table 1 Employee satisfaction

S.

Safety Measures

Highly Highly Highly Satisfied

No Satisfied

Moderate

Total

Dis SatisfiedDis SatisfiedDis

R* R* R* R* R*

P** P** P** P** P** 1 Conference on safety 78 51 39 26 27 19 5 3 3 1 152 2 Safety Education 37 24 75 49 26 18 10 7 4 2 152 3 Safety committee 35 23 39 26 49 32 18 11 11 8 152 4 General Inspection - - 62 4O 58 38 23 15 9 5 152 Inspection by inspector of 5 ------62 40 90 60 152 factory 6 Safety officer appointed - - - - 90 60 43 28 19 12 152 7 Uniform 130 85 14 10 8 5 - - 152 8 Safety glass 50 33 49 32 44 29 9 - 152 9 Casual leave 93 62 36 24 21 13 2 1 - - 152 10 Medical 40 27 78 52 24 15 8 5 2 1 152 leave Source: Primary data compiled by the researcher. R* Respondents P** Percentage This paper was analyzed various dimension of labour welfare measure in India. The collected data were analyzed by the researcher in descriptive method and result were pot rayed in from table. From the analysis, the researcher derived the following findings. 1. Most of the organized sectors have permitted to take 12 days casual leave to its employees any time during the year. But private sectors may permit to take casual leave on monthly basis (per day per month). 2. The majority of 93 employees were highly satisfied about the casual leave facilities offered by aluminium fabrication units. 3. From the opinion of 112 employees aluminium fabrication units are not permit the employees to take medical and maternity leave with salary benefit. 4. The majority of 130 sample employees said that, employer of the aluminium companies were conducted the sports and cultural program to understand, corporate and co-ordinate with other employees. 5. Out of 152 respondents, 10 respondents informed that, the companies arranged seminar and conference and remaining 142 respondents told that there is no program conducted. 6. The aluminium fabrication companies are unaware about the stress management, because 60 per cent of respondents noted negative respondents. 7. Out of 152 sample respondents, 123 employees (80.9 per cent) said that medical allowances are provided by the companies and remaining 29 respondents stated that there was no medical allowance provided to those who are consolidated pay. Hence the researcher supported that the aluminium fabrication companies should take care of its employees health and welfare beside, should have own dispensary.

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Suggestion and Conclusion A labour welfare measures are essential in every organization. Especially in the Aluminium Industry, it is very essential to improve the moral, motivation and wellbeing of the employees. Aluminium fabrication units in Puducherry is providing very good welfare measure to its employees, Most of the employees are satisfied with various welfare measures adopted by the Aluminium fabrication units in Puducherry. It reflect in productivity and increasing the morale of employees in the organizations. However, the researcher suggested that the welfare measures were leaded not only the output and efficiency but also increasing loyalty and moral of employees. But, the companies are not provided all the welfare measures to the contract and temporary employees. So, the researcher suggested that the company was provided all the welfare measures to the employees, because it is increase loyalty, moral of employees.

References 1. Armstrong M. 1992. Personnel Management Practice. Kogan Page Ltd, London. 2. Aluminium window frame Aluminium, wooden composite profile, OEM/ODE, if kinds of windows www.aluminiumsupplier.com.cn 3. Aluminium Extrusion professional aluminium manufacturer provided quality products Website www. Nalcoindia.com (http;//www.nalcoindia.com/) 4. Aluminium Industry product- Aluminium channel- square Fillet, Aluminium Angle and Aluminium Product. 5. Basu N., Chaudhuri B. and Roy P.K., Indian Aluminium Industries, ISSN 0199-8595, Vol. 102. 6. M. Ramasatyanrayana and Dr. R. Jayaprakash Reddy, labour welfare measures in cement industries in india , Volume 2, Issue 7, ISSN: 2249-5894 July 2012. 7. Neetha, N. (2001), Gender and Technology: Impact of flexible Organization and production on Female Labour in the Knitwear Industry’, V.V. Giri National Labour Institute, NOIDA. 8. P. Swapna and N. Samuyelu, VSRD International Journal of Business Management Research, VARD-IJBMB, Vol.1 (7), 2011, 397-407, WWW.visualsoftindian.com/journal.html 9. International Journal Management Science, ISSN 0973-2101 Vol.2, No. 1, July2006 10. BehindtheShining,FactsandVoicesontheAluminiumSmeltingIndustry,Aluminium’sDarkSideIP S/SEEN/TNI,Report2001:WorldAluminium Organization; Taiwo etal, 2006 Journal of occupational and Environment Medicine,

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THE COMMUNICATION IS PLACED AS PIVOTAL ROLE ON THE PROFESSIONAL: SCENARIO

K.R. Rajavel, M.A.,M.Phil.,B.Ed & J.Mangalakshmi, M.A.,M.Phil.,B.Ed., Assistant Professor, Department of English, S.S.B.S.T.A.S College, Mailam

Abstract Every person in their world wants to become as successful in their profession. Today’s corporate world is the most competitive its one. Adequate knowledge and techniques into the field related their skills are must, but if they are not sufficient, an individual wants to sustainable in this era. Communication skills play a pivotal role in the life of professionals. The increasing pressures and professional challenges widen the role of employee. The Professional domination in Multi-National companies always expects that their employees must possess good communication skills along with technical proficiency. The success of the employees depends on the effectiveness with which they imbibe and publicise information. This paper to highlights an importance of communication skills, an individual’s career and technical commercial enterprise Keywords: Corporate world, communication skills, technical competency

Introduction Effective communication is the most important utensil to achieve the desire purpose. Each and every step of our life, wherever we are, we need communication, verbally or non-verbally on daily basis to transfer our ideas, thoughts, emotions etc. It is a continuous process which begins with the cradle and goes until the grave. The peculiar as well as an organisation cannot survive without good communication skills. The future of every organisation is also based on its communication pathway. Business communication involves any kind of communication that promotes strong partnerships, promote products or services, as well as transmit information within a particular organization. It is imperative therefore that communications should be done clearly, productivity and accurately because it can have a great impact on a company’s reputation and credibility, and will definitely say a lot about its level of professionalism. Business is a kind of interpersonal communication. The administrators and employees, sellers and buyers must communicate expertly to promote the business. Even the small merchant or salesman with his convincing skills attracts more customers to earn more profit. Theoretical and technical knowledge about the field is must but it should be coupled with effective communication in order to reap good results. Professionals should acquire the skills and knowledge needed to maximize every lucky chance to communicate with your team members, superiors, clients, and customers. Effective communication is important for company administrative, business managers, team members, and even job applications for them to know how to make use of communication tools and techniques to serve their purpose and reach their goals. Effective communication is an essential elemental for organisation success, whether it is in the interpersonal intra group organisation or outside levels. A recent newspaper report said that of every hundred interviews, only five qualified for employability because of lack of communication skills.

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Need of effective communication for professionals Motivation Motivated employees are an asset to a business organisation. Effective communication centres round the usage of words, speed of delivery of words, pitch modulation and body language. Using the right tools to communicate the right messages at the right time can rescue a critical situation and motivate people to work approaching success. Motivated employees ensure not only the smooth and efficient functioning of an organisation but also increased production, sales and gains without supervision.

Impress the Clients One needs good communication skills to impress the client through oral communication. Now oral presentation can be best defined as a person proposing a speech to an audience. Oral presentation is a common tool used in business, which it is often used in business meetings. An oral presentation can produce a significant amount of tremble to the audience; if the purpose is to convince the audience then an oral presentation is used to persuade the audience.

Raising Morale Morale means “the capacity of a group of people to pull together persistently and consistently in pursuit of a common purpose”. It is the product of motivation, which leads to zeal for action. The morale of the employees changes time to time. Authorities should therefore use effect communication to keep their morale high

Facilitate Business Meetings Facilitation is the technique or skill of organizing a business meeting.

Managerial Efficiency Communication helps in smooth operation of management. Administrative task can only be performed when communication system is effective.

Better Decision The success of organization can be measured in better decision. When the information, data and other fact are not effectively communicated, it hampers the decision making. So, when the facts are communicates to concerned department, organization and person. It is easy to make decisions promptly.

Unity A Company that works to develop strong communication with each other is a united company. Each team member shares the same goals in this case, and everyone knows what their co-workers have on their plate

Removing Controversies Effective communication allows smooth functioning that results conflict, controversies and disagreement can be resolved easily

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Channels to make Communication Effective at Workplace The word channel means the direction in which something moves. Therefore when we speak about of communication within or outside the organisation, we have in mind the direction in or along which communication moves. Professionals are spending their maximum time at workplace on communication through listening speaking, reading, writing etc. Though most casual observers of associated behaviour focus on a company’s external marketing, business communication happens whole of every organization, using multiple Fig.1. Relationship in Business Communication channels for many kinds of desired results. Effective business communication includes a two- way cycle of messaging and feedback designed to achieve a specific reaction. Business cannot be successful without good relationship, proper conveyance of information and ideas between: The efficient and smooth functioning of the channels of communication is the prime urgency of a business organisation. Channel richness refers to the amount of information that can be transmitted from one person to another during any given communication.

Techniques to Improve Communication Skills at Workplace Communication is the key to success in business. Business communication is the ability to build dimensional relationships based on the effective and adept exchange of information between two or more parties. Listening, speaking, reading and writing these four techniques really helpful to improve communication. The studies about a day in the life of professionals show that they spend their Fig.2.Communication time spent by an individual in a day communication time as shown below:

The Creativity of Listening Skills at Workplace Listening is an ability to decode the sender’s message effectively and understand it clearly. Hear with ears but listen with the mind. Without effective listening message may misunderstood and communication may fails. Many reputed companies always arrange listening skills training sessions for their employees because listening skills can lead to better customer satisfaction, greater output, innovations and creativity.

The Creativity of Speaking Skills at Workplace Wherever you work, whatever the position but time and again you need to give oral presentation or speech You may be asked to talk with your colleagues, clients, suppliers, or general public. One needs to be efficient in meetings, group discussions, seminars, workshops and presentations. The ability to speak effectively sand powerfully is very important in public to get several merits.

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The Creativity of Reading Skills at Workplace Obtaining reading skills can help us to grip the central idea and content faster. It saves time and produce good result. Skimming and scanning reading skills are important at different levels. Professionals have to read variety of texts, e-mails, books, reports every day to take proper decisions.

The Creativity of Writing Skills at Workplace Effective writing is must for every professional to write business reports, letters, proposals, notices, e-mails, research papers etc. Right words, grammatically correctness, clarity, precision, proper construction, coherence between sentences, logicality , completeness, consideration all these factors are important while preparing any quality writing.

Conclusion Thus Indian former Prime Minister Mr. who said that, “The destiny of a nation is shaped in her classrooms”. The Communication skills cannot be taught, however they can be developed through proper training, dedication and hard work. It is need that students should get the proper opportunity to develop their communication skills at graduation level. The syllabus committee or authorities of universities should think properly to make some necessary changes on the curriculum basis. The faculty members of communication skillsshould accept the challenges and focus on practice and implementation. The corporate world always expects the highly skilled candidate who satisfies their needs. The employee and the students should have their aim to develop all the abilities and skills which required in business world to make them successful. If we neglect the importance of communication skills, our students never fulfil with their expectations of business world.

References 1. Thomas Hackin, and Leslie Olsen. Technical Writing and Professional Communication for non-native speakers of English, Mcgraw- Hill 2. Professional Writing Seminar for Engineers, http://www.ecf.toronto.edu/%7Ewriting/ prowriting. http 3. Clyne, M. Inter-cultural communication at work. , Cambridge University Press, Cambridge, 1994. 4. Nicky, Stanton. Mastering Communication, Palgrave Master series 5. Meenakshi, Raman, and Sangeeta Sharma. Communication Skills. Oxford: University Press. India, 2011. 6. G. Bansiramani. Business Communication, Reliable Publications, 2008

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TOURISM IS EMERGED AS PROMINENT FACTOR ON NATIONAL- ECONOMIC GROWTH

V. Vedhachalam & E. Deepa Assistant Professor of English, SSBSTAS College, Mailam

Abstract Tourism is an essential factor on our national economical growth. The ministry of tourism and its development to encourages in various promotion for Indian tourism. The world travel and tourism council measured that tourism generated INR6.4 trillion or 6.6 % of the nation GDP in 2012. It helps 39.5 million jobs, 7.7% of its total employment. This paper discusses how tourism emerged as prominent structure on our national economical growth. This survey draws an attention of sustainable growth of domestic employment of our country. This paper focuses about the contribution to the generation of foreign exchange. It provides tremendous effect on our small scale industry as well as an economic sustainable condition. Keywords: Tourism, National Economic, Sustainable, Tremendous

Introduction Tourism is majestically known that the commercial organization and operation of the holidays and visits to places of the tourism is new term that “go beyond the common perception of tourism being limited to holiday activity only” and it may called as the practice of travelling for recreation. The main factor of Tourism is subsequently increased of nation’s economical condition. Therefore, tourism and its development to created as new employment opportunity in the modern condition. The Tourism has been drawn tenaciously as effluent strategic progress of many developing countries. It has also been used for the increase of foreign investment.

History of Indian Tourism There are number of industries which play a pivotal role in the development of nation. One such industry is Tourism that emerged as the largest global industry in the twentieth century and twenty first century. The Tourism is the centre of India. The main area of tourism to be based on India’s Indus Valley Civilization and the Aryan Civilization. Tourism development in India started in early sixties. By that time most of the other countries have achieved a remarkable progress. India is considered as a developing country due to the major increase and progress of tourism related to its economic value. India’s tourism has been considered as an immense value. Our nation has an ancient tradition of tourism. It existed as an industry in the formal sector in ancient times and was indulged in by all classes. India is one of the countries that enabled with an imperishable interest for alien prince and alien peasant. The ministry of Indian Tourism has launched a new programme called “Athithi Devo Bhavah”. In the chief minister conference which was held on October 2001(The National Tourism Policy 2002) the Prime Minister Atal Bihari Vajpayee had stated that tourism is a major phenomenon of economic growth in major parts of the world. Many countries have transformed their economics to create different types of employment in the various sectors.

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Tourism as a Globalized System Tourism is considered as the globalized system across the world. Tourism is often seen as global phenomenon with an almost incomprehensibly massive infrastructure. Its importance is evident from the fact that its influence penetrates through society, politics and culture and above all the economy. The World Tourism Organization (WTO) estimates that in 2007 it encompassed 904 million tourists who spent 855 billion US dollars; they thereby supported a global system with roughly 100 million employees in the modern leisure and experience industry. Since its inception of tourism polarised, the early theory of Fremden Verkehr, a new absolute term for tourism emerged in German. During 1960’s there has been replacement of over-expanding field of tourism. This gives many disciplines the space to approach the subject of tourism. Today tourism studies means that the multi-disciplinary of academic approach. However, tourism study does not exist as an integrated field of study instead there are countless empirical accounts, case studies, approaches theories and perspectives in the individual discipline including economy, geography, psychology, art and literature, politics and medicine. This article shows that tourism is highly popular in the age of classical Rome and Greek. Around 300 A.D, due to development of infrastructure, there exists road network with 20,000 kilometres of small rural roads.

Economical Importance of Tourism helps the visitors to acquainted with the culture. Tourism has drawn liberties in their mind and helps the people to strengthen the bonds of friendship, international relationship among many countries. The economic importance of tourism in India can by no means by underestimate. It benefits the people living in and around tourist centres financially. The understands the importance of promoting tourism. Many hotels, tourist lodges, dormitories and rest houses are made and maintained by various state Government to look to comforts of the tourist, the money spent by the foreign tourist at hotels and other places helps the local money the pages of history, that foreign travellers namely Megasthenes, Fa-Hien, made their extensive tour on our country. Tourism is one of the major sources of foreign exchange. Tourism is not only meant as a business for providing pleasure and rest. It has now grown into a big industry. Every year thousands of foreigners come to India as a result from which people earn a lot of foreign exchange. Tourism has caused the growth of travel agencies and tour operating establishments of hotels and guest houses restaurants and eating houses. It has also encouraged many small scale craftsman have now flooded the market. In its own way, tourism is trying to solve a part of our vast unemployment problem. Tourism enriches the basic small scale industry as well as the process of tourism which places its vital role in national economic condition.

Tourism Emerged as Prominent Factor in National Economic Growth Tourism is important for growth and development of a developing country. Nowadays, tourism is the flourishing industry. The advantages of tourism include employment, opportunity, and growth of service sector, foreign exchange, earning, cultural growth, cultural exchange and opportunity for recreation.

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Employment Tourism provides employment opportunity for local people. Tourism industry is growing very rapidly in India employing million of the people.

Creating Happiness Tourism create happy occasion among the people due to its effect. Even though the family has many problems in their day-to-day life, due to their trip they would enjoy the moment and exchange happiness among family members.

Economic Growth Tourism helps in the development of economy of a country. It helps in the overall GDP development of a country. It helps the local people to earn their livelihood. The tourists spend their time lavishly during vacation. The local people engaged in assisting the tourists earn a good income.

Cultural Exchange Tourist gives opportunity to people of various cultures to assimilate together. People belong to cultures meet together and understand each other. This gives them an opportunity to build respect for each other. Hence, it fosters culture and its harmony.

Conclusion Thus, tourism plays a vital role of our nation’s economic condition. Tourism is known to be one of the major sectors in the world. It may continue to making promotion of tourism of their country. In India, the tourism development started in early sixties by the purpose of increase of the economic condition. It also exhibited our traditional values and customs among the world. Generally, human being to seek patience and pleasure of their life. There is one major phenomenon for the tourism which tries to remove our strife and reluctantly on day-to-day life. It flourishes with joy forever.

References 1. Anand, M.M, Tourism and Hotel Industry: Prentice Hall of India Pvt. New Delhi: 1997. 2. Archer, B.H, The Impact of Domestic Tourism: Cardiff University of Wales Press, 1973. 3. Bhatia, A.K, Tourism Development Principle and Practice: Sterling Publisher Pvt Ltd. New Delhi: 1982 4. https://sciencedirect.com 5. iopscience.iop.org

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COMPREHENSIVE COVERAGE OF EFFECTIVE COMMUNICATION IN MODERN ERA

A. Kanimozhi, MA., M.Phil., B.Ed., & T. Sivakumar, MA., M.Phil, B.Ed., Assistant Professor of English, SSBSTAS College, Mailam

Abstract Effective communication is the life blood of all the organisations. Getting the work done in effective manner has become more important that having the most knowledge. Because Today, Business is no longer localised in any one region or country it is spread far and wide. Well, ‘Communication constitute the lifetime of every business ‘. This paper highlights about the need of effective communication and sequence of all its relevant dimensions like Methods, Channel and Types. This paper may be a key to perfecting your communication strategy. However, at the bottom of these lies an effective communication skill. The great communication skill can make all the different in all individual’s personal and profession life. Lack of serviceable communication skills contributes to the low profile of person in general public. Effective communication has become imperative for every profession. Successful communication in new markets requires developing new skills, ability to read, listen, speak and write effectively. Finally, this paper meticulously and systematically highlights learners to cultivate, develop, and hone these skills to face the competitive stages and get better opportunities in the present job market. Keywords: Effective Communication, Competitive, Business, Knowledge.

Introduction In today world, Effective communication is important for the development of an organization. It is something which helps the employee to perform the basic function of management- Planning, Organisation, Motivation and Controlling. Communication skills whether written or oral, form the basis of any business activity. A good communicator is generally successful not only in professional dealing but also in personal relationships. Plato, a great philosopher says “Wise men speak because they have something to say; fools because they have to say something”. Thus communication serves as the foundation of every facet of business, so can be said the effective communication is the building block of an organization. “Communication- the human connection- is the key to personal and career success” – Paul. J. Meyer.

Defining Communication Communication is the art of conveying intended meaning from one entity or group to another through the use of mutually understood signs and semiotic rules. Peter little defines the communication as follows: “Communication is the process by which information is transmitted between individuals or Organisations so that an understanding response results. The word ‘communication’ in the singular form is different from the plural, ’communication’ when we attempts to define communication; we are looking at a dynamic and evolving subject. It is no surprise, therefore that communication, over the years, has seen numerous dimensions. The following definitions bring out different facets of communication and together facilitate an understanding of the expanse of the concept. “Communication is the means by which power is exerted”. SCHACTER

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Above quote bring out the dominant role played by communication in empowering people in their individuals and organizational endeavours.

Need for Communication Sociologists describe human beings as social animals. As members of Society, they have to constantly interact with their fellow beings. They have feelings, emotions, likes and dislikes- all of which they have to convey. Need for communication arises from their desire to express themselves in a meaningful manner. “Communication adds meaning to life”. Developing your communication skills can help all aspects of your life, from your professional life to social gathering and everything in between the ability to communicate information accurately, clearly and as intended, is a vital life skill and something that should not be overlooked.

Different Effective Methods of Communication (useful) Communication takes place through various methods and channels. The Standard methods of communication are speaking or Writing by a sender and listening or Reading the receiver. Most communication is Oral, with one party speaking and other listening. Even Jim Rohn quotes that, “If you just communicate, you can get by, but if you communicate skilfully, you can work miracle”. The Three main methods are Oral or Verbal communication, written communication and the non-verbal communication. Oral communication takes place by way of talks, conversation, dialogue, speech, discussion, meetings and the like. Written communication takes place by way of letters, circulars, memos, reports, brochure, books, etc. Non-verbal takes place through body language. Language constitutes the vehicle on which both oral and written communication travel. Apart from these three main methods of communication there is other like the visual, audio-visual and electronic. Silence is also accepted as a method of communication.

Oral Communication Oral communication refers to the spoken word. It takes the form of sounds and words. Starting out as a struggle by the early man, oral communication has had a long journey. It has developed across different regions, cultures, countries and continents. The development of numerous languages across the world in expressed oral communication. “Oral communication covers the spoken word”. Oral communication plays a vital role in everyday life, both for individual and organization. It is, indeed, the most commonly used method of communication both at the social level and at the organisation level. Everyone makes copious use of oral communication in their transaction and interaction. For the individual, talking and speaking provide a very dependable means of communication within the family and in social groups. Oral communication is also extensively and gainfully used within organisation and business entities as well. Oral communication is also referred to as verbal communication. It takes place between individual with the help of words. Oral communication takes place in many ways – causal and serious, formal and informal, structured and unstructured. Oral communication encompasses conversation, monologue, dialogue, talk, speech and chat some of these are premeditated and some are nod. Formal speeches are pre-planned and well structured, whereas informal ones are unstructured and often loosely worded. “Oral communication is both structure and Unstructured”

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Written Communication Written communication is another powerful method of communication. History is replete with instance where a piece of writing was involved in event of great significance in love, war, peace, union and betrayals. The power of writing is eloquently express in the saying “The pen is mightier than the sword”. After experimenting with writing on sand, stone and leaves, man invented paper, pen, books and printing. Newspaper and journals developed as the media in mass communication. “Pen is mightier than the sword” Written communication has come to acquire great significance in the lives of individuals as well as business organizations. It reaches across vast geographic areas and targets readers around the world. The reach of written communication is limited to the literate world. However, with the literary levels steadily rising across the world, written communication can accomplish much more today than it could in the past. Writing skills and word-power of the communicator come into play in making the written communication forceful and effective.

Non – Verbal Communication The third method of effective communication related to non-verbal communication. It is wrong to assume that we communicate only when we speak or write. Even when we are engaged in an oral conversation or in a writing activity we may communicating something which is neither oral nor written. While oral communication thrives on listening and written communication thrives on reading, the non-verbal communication thrives on observation. Non – verbal communication may take any of the following forms  Body language  Gestures  Postures  Appearance  Personal space  Codes  Signs and signals  Facial expressions and  Personal behaviours. “Non-verbal communication thrives on observation” Non – verbal communication may be conscious or unconscious, deliberate or unintended. It may substitute verbal communication or supplement it. There may also be occasions when the non- verbal communication may be out line with or ever contradict oral communication, when used with full awareness; body language can create the desired impact. At the sometime, unintended body movements and expressions may confuse the listener, as below mentioned “Non- verbal communication is deliberate and unintended” Each method of communication has its merits and demerits, to ensure effectiveness, it is necessary to evaluate the available options and choose the most appropriate ones. Apart from different methods of communication, there are various types of communication depending upon the level at which it takes place, the direction it takes or by its very nature. Commonly referred types of communication are:

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 Personal communication and Business communication  Internal communication and External communication  Upward communication and Downward communication  Formal communication and Informal communication  Mass communication  Global communication  Lateral communication  Interactive communication  Special communication  Social communication  Grapevine All these type of communication as its relevance and importance. The spectrum of effective communication is vast, defies, dynamic and evolving nature. Skills relevant for ensuring effective communication in the present modern era include the following: Mastering the skills  Communication skills  Listening skill  Presentation skill  Negotiating skill  Social language for business  Business writing skill  The art of good speaking  Electronic communication  Telephone techniques  Business simulation: Meeting, seminars, negotiation and presentations. A good communication has to master numerous skills in present world.

Conclusion Effective communication is hardly ever accidental. Not all communication is effective. Good communication is as stimulating as black coffee and just as hard to sleep after, this paper focuses on brief explanation about defining communication, method of communication and to master in skills. Moreover this particular paper is a comprehensive coverage of effective communication in present scenario in specific related to business. Thus, this paper may be considered as the preventive measures and not a curative measure. So, it greatly helps students aspiring to excellence in their careers. It will also help those who are new in their jobs and are striving to prove themselves in their challenging roles in the present competitive world.

References 1. Juneja, Om P, Mujumdar, Aarati. Business Communication-Technique and Methods, Hyderabad: Orient Blackswan Private Limited, 2010. Print. 2. Madhukar, R K. Business Communication, New Delhi: Vikas Publishing House, 2005. 3. Raghunathan, N.S, Santhanam, B. Business Communication, Chennai: Margham Publishers, 2003. Print. 4. Pal, Rajendra, Korlahalli, J. S, Essentials of Business communication, New Delhi: Sultan chand and sons, 2000. 5. Kathiresan, S, Radha, V. Business communication, Chennai, 2003. 6. Nicole, Vijay, Handbook of Soft Skills, Chennai: Vijay Nicole Imprints Private Limited, 2017.

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IMPORTANCE OF COMMUNICATION IN BUSINESS IN THE PRESENT SCENARIO

E. Deepa & V. Vedhachalam Assistant Professor of English, SSBSTAS College, Mailam

Abstract Communication is a skill which should be acquired by an individual to transfer their ideas and thoughts to others. This paper focuses on the role and importance of communication in business. This paper also analyses the process of communication and the barriers of communication. To make one’s business effective and successful, one should possess the qualities and skills like brevity, simplicity and clarity. It deals with the way in which the competitors of the business use the technical way of communication to get desired result in their business. The competitors should be skilled enough to become a good and successful businessman by using the developed way of communication. The various skills needed for the businessman has been analyzed in the paper. The businessman andemployees should possess such type of skills to make become an effective and efficient businessman. Keywords: Communication, brevity, simplicity, clarity, successful business.

Introduction Communication is a skill which an individual acquire to exchange their ideas, opinions etc. An individual may acquire the communication skill either through innate qualities or through continuous practice. Due to this kind of acquired skill, individual may look aggressive; shy, courageous according to their level of fluency in communication.

Definitions of Communication 1. “Communication is transfer of information from one person to another whether or not it elicits confidence. But the information transferred must be understandable to the receiver” - G.G.Brown (Raghunathan, 1.3). 2. “Communication is the intercourse by words, letters or messages”- Fred G.Meyer (Raghunathan, 1.3). 3. “Communication involves a minimum of two people, the sender and the receiver” (Mujumdar, 3).

Importance of Communication Everyone is communicating to each other in order to persuade, to provide information, to seek information, to express one’s emotion etc. As communication has been taking place at places and at various levels, it has its different purposes. Communication has its own importance according to its various approaches and purposes.

Process of Communication Sender (Encoder) ------transmission------Receiver (Decoder) The communication process has been taking place in a process in which the sender(encoder) transmits the message to the receiver(decoder). This happens in a continuous process. The sender should encode the message in a correct and clear manner so that the receiver will decode the message properly.

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Barriers to Communication Communication is effective only when it flows in its path freely without any interruption. The causes of miscommunication are misunderstanding, irrelevant response and undesirable reactions. Some of the types of barriers of communication are as follows:  Physical/Environmental Barriers  Barriers caused by wrong choice of medium  Semantic Barriers  Cultural Barriers  Psychological/Attitudinal Barriers  Barriers caused by varying perception of reality  Socio-Psychological Barriers.

Features of Business Communication Writing and Speaking are the basic communication skills. Some persons will do it in a perfect way. It is not such a hard task to do. By practice, it will be done in a good manner. Brevity, Clarity and Simplicity are the three major qualities of good speaking or writing.

Brevity Brevity is one of the important aspects in communication skills. Brevity makes speeches and writings attractive. Communication should be brief enough to attract the receivers. At the same time, due to brevity, communication should not lose its important information. Brevity in the sense, it should be both short enough and informative, and the explanation should be clear.

Clarity The communicator should not give all the ideas in a muddled up way. If it happens so, the information seems to be irrelevant. Instead, the communication should be clear for the receiver. By giving all the details, the communicator should not confuse the receiver. Clarity in communication is possible only if the thoughts are clear.

Simplicity Simplicity is another important feature of good communication. There is no need for the communicator to use gorgeous words or exaggerated words to explain their point of view. It is enough for them to use simple words to explain their concept clearly to the receiver. The communicator should not run after pompous words because business communication is not like poetry or essay writing.

Business Communication in the Present Scenario The process of communication has evolved over centuries. Though the roots of communication has its roots in primitive age, the aspects of communication differs from period to period, generation to generation etc. Yesterday’s communication differs from today’s communication and today’s communication is also varied from tomorrow’s communication. The communication which has been used in the beginning stage of human life has complete variation to the present way of communication. Pre-historic men communicated with each other through sounds, symbols, signs etc. This form of communication was not much effective. As that time was

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” beginning of communication stage, the method of communication seemed to be good to the people. But as time progresses, as technology grows, communication also has its growth in its own way. “Yesterday, Communication was through sounds, gestures and pictures”. “Today, Communication is a mix of conventional skills and new age technology”. “Tomorrow’s Communication is set to be increasingly electronic and dehumanized”. Hence, it has been said that in the present scenario, communication has been growing rapidly and the communication in the present situation has been making its way through electronic media like e-mail and other resources. Wherever place it is, whatever function it is, communication plays a vital role in business.

New Trends in Business Communication Business is a metamorphosing, replacing old one with the new ones. Yesterday’s criteria will be taken back and the present criteria have been put forth in the business. In business communication, telecommunication has seen an enormous growth. John Naisbitt and Patricia Aburdene say in their book, Megatrends 2000, “in telecommunication we are moving to a single world- wide information network, just as economically we are becoming one global market- place” (Madhukar,220). Some new concepts of significance to the business communicator are:  E-Mail  E-Commerce  E-Business  Internet  Communication Networking Systems  Tele Conferencing  Video Conferencing  Short Message Systems

Skills needed for Business Communication Apart from the concepts which have been stated above, oral presentation and interactive plays a vital role in the significance of business Communication. Business Communicators are required to have some presentation skills to attract the customers and to capture their attention. Such kind of activities need some set of skills. They are:  Overcoming stage fear  High level of self-confidence  Understanding audience psychology  Time management  Voice modulation  Business related knowledge  Good command over the language  Ability to overcome difficult situations

Making Effective Communication To make the communication effective in the business, one should possess the above said skills and they also should follow the concepts which have been stated above. Moreover, communication is not accidental. It should be achieved through practice. It has been clear in the

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words of Peter Drucker: “Your effectiveness depends on your ability to reach others through the spoken or written word.”

Conclusion Communication is a skill which has been acquired through innate qualities or through continuous practice. Though, there are various kinds of communication has been promoted at various levels, the communicator of the business has to use according to the development of the society. To succeed well in business, the competitors have to utilize and make use of various aspects and skills used in communication.

References 1. Juneja, Om P, Mujumdar, Aarati. Business Communication-Techniques and Methods, Hyderabad: Orient Blackswan Private Limited, 2010. Print. 2. Madhukar, R K. Business Communication, New Delhi: Vikas Publishing House, 2005. Print. 3. Raghunathan, N.S, Santhanam, B. Business Communication, Chennai: Margham Publishers, 2003. Print. 4. Pal, Rajendra, Korlahalli, J.S, Essentials of Business Communication, New Delhi: Sultan Chand & sons, 2000. Print. 5. https://managementstudyguide.com/business_communication.html

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PROBLEMS FACED BY FEMALE STUDENTS AMONG COSMETIC PRODUCTS

Dr. M. Rajarajan Assistant Professor & Research Supervisor, Department of Commerce Annamalai University, Annamalai Nagar

G. Birundha Ph.D. Research Scholar, Department of Commerce Annamalai University, Annamalainagar, Tamilnadu

Introduction The study is to identify what are the key determinants in young female students in the cosmetics buying behaviors. The purchase of cosmetics products increases the self-esteem and enhancing self-confidence level among the female consumers. The female students are found to be more aware about improving their self-image. The consumption of cosmetics products among the females students are strongly influenced by cultural and personal factors. The study is also found that their involvement in the traditional products of cosmetic behaviors increased in the consumption of cosmetics. The main determinants in the consumption pattern of cosmetics are behaviors are convenient in the use of cosmetics, hygiene functions, products diversity, features, fragrance of the products, price and quality are strongly influences in the consumption of cosmetics.

What is Cosmetics Cosmetics or Koz-met’iks are primarily manufactured preparations for beautifying the user. The United States Food Drug and Cosmetic Act of 1939 in U.S.A. defines cosmetics as follows: “articles intended to be rubbed, poured, sprinkled or sprayed or introducing into, or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting, attractiveness or altering the appearance, and articles intended for use as a component of any such articles” except that such term should not include soap, while cosmetics may clean the skin or change its colour, they do not prevent care of any dermal condition.

Scope of the Study An attitude is much like a trigger in a rifle; if the conditions are right within the individual's psychological field and if enough pressure is applied, it will lead to action, either over behaviour or anger, hostility, love or compassion towards the attitude object. Female students’ attitude and business prospects are inter-related. Attitudes individually and collectively determine female students’ behaviour. The success or otherwise of a marketing activity is further determined by change in behaviour of female students’. As already mentioned, promotional measures influence attitudes and behaviours which may or may not improve a market. All human beings have needs some are known and others hidden in minds. Advertisers play upon the feeding of the human being and they bring out the hidden needs to light through effective advertisement. The techniques applied by them in this connection are many.

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Cosmetics are items of goods used by almost all people. They have become essentials even to “lower” groups of consuming public. Irrespective of age and earnings differences, cosmetics have entered human way of life in more than one way. Because every part of the exposable human anatomy is subject to cosmetic attention and nearly all in our society, both men and female students’ use some cosmetic aids, to increase their sense of well being and to enhance their bodily attractiveness. It is no wonder that the field undergoes rapid changes as new compounds are introduced. More over the trend is towards the increased use of cosmetics.

Review of Previous Literature The researcher has made an attempt to review the previous studies pertaining to the marketing of cosmetics and other studies related to them. Carter, W.G. (2005) has observed that all the important psychological motives for advertising cosmetics products. He listed the various psychological motives such as money, variety, acquisitiveness, rivalry, comfort, adornment, cleanliness, companionship, amusement, sensual gratification, construction, aggrandizement, mental culture, 22 affection, social achievement, ambition, inhibitiveness, reverence, romance, aesthetic taste, sex, imitations, curiosity, self preservation, sympathy, gratitude, patriotism and so on. These motives will naturally induce consumers to purchase more cosmetics and the demand will be increased. Maheswari (2008) in her study has concentrated on consumer behaviour towards television: the influencing factors, after sale service and level of satisfaction on India made electrical and electronics brands. The present study focuses on reasons for preferring factors affecting and post-purchase behaviour of foreign brand users. Debiprasd Mukherjee (2012) conducted a study entitled Impact of celebrity endorsement on Brand Image”. This study shows that consumers report higher self-brand connection for brands with images that are consistent with the image of a celebrity that they aspire to be like, particularly in the case when the image of the celebrity and the brand match

Selection of Sample Size  Talcum Powder  Vanishing Cream  Shampoo  Scented hair oils  Eyebrow liners  Nail Polish  Perfumes  Lipsticks and  Hair Dyes

Cosmetics Industry Facing Many Problems  Transparency and Traceability  Green Formulations  Sustainable Packaging  Water Management  Social Impacts

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 Product Preservation  Fragrance Allergy

Buying Behaviour of Female Students-An Analysis In this period of globalization, tremendous development in science, education, economy, society, and technology has provided people an opportunity to experience a better living standard and life style. Souiden & Diagne, (2009) stated that the increased in the purchasing power and the new emerging market offerings made people more aware and conscious towards hygiene and beauty. The buying behaviour of students (youth) are related to aspects as-

Age of the Respondents The age of the consumers can change the desires, wants, needs, and aspirations of products consumption. The age category influences the preferences and consumption pattern of the consumer in the cosmetic products. The age wise analysis of the consumers in the consumption pattern of cosmetic products would help to be useful in improving the demand forecasts. In the present study the age wise distribution of the respondents in the cosmetic products is presented in Table 1. Table 1 Age of the Respondents No of Table 1 shows that, out of 563 respondents 244 Age % Respondents respondents constitutes 42 per cent are from age group of 18 to 21 years followed by 209 respondents Up to18 Years 209 35.97 constitutes 35.97 per cent from age group up to 18 18 to 21 Years 244 42.00 years and age group 21 to 25 years constitutes 22.03 21 to 25Years 128 22.03 per cent of the total responses towards the Total 581 100.00 consumption pattern of the cosmetics in the university students. Source: Primary data

Faculty of the Respondents The classification faculty of the respondents is very important it also influence behaviour of the consumers in the cosmetic products. The education of medical or dental respondent knowledge, awareness and current trends in the cosmetic products may be differing from agriculture or engineering respondents. The faculty wise classification of the respondents is also influence the purchasing behaviour of cosmetic products. The faculty wise distribution of the respondent is presented in Table 2.

Table 2 Faculty of the Respondents No of Table 2 depicts that, a maximum of 58 per cent of Faculty % Respondents the students are studying in the course of agriculture, followed by 22.38 per of the students are studying in Agriculture 337 58.00 the course of engineering, 12.22 per cent of the Dentistry 43 7.40 students are studying in the course of medical and Engineering 130 22.38 least of 7.40 per cent of the students are studying in Medical 71 12.22 the course of dentistry towards respondents selected in the consumption pattern of cosmetic products. Total 581 100.00

Source: Primary Data

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Problems in making Use of Cosmetics (Spearman’s Rank Correlation) Now, every day I look forward to looking in the mirror and seeing that my facial skin is doing better that the day before. Now when I’m around people I feel confident and even beautiful, I even got a compliment on my skin.

Table 3 Problems in making Use of Cosmetics Source: Computed from Primary data No. of Mean It is observed from the Table 3 S.No. Problems Rank Respondents Score shows that, a ranking is a relationship 1 Transparency and 125 3.212 1 between a set of items such that, for Traceability any two items, the first is either ranked 2 Green Formulations 104 3.012 2 higher than, ranked lower than or 3 Sustainable Packaging 89 2.672 4 ranked equal to the second. It is often 4 Water Management 92 2.890 3 used as a statistical method to aid with 5 Social Impacts 58 2.210 6 either proving or disproving a 6 Product Preservation 66 2.321 5 hypothesis e.g. the depth of a river 7 Fragrance Allergy 47 2.014 7 does not progressively increase the Total 581 2.321 further from the river cosmetic industry.

Testing of Hypothesis ‘t’test was applied to ascertain if there were any significant difference between reasons for using consumption pattern of cosmetic products among female students and the marital status of the respondents and the following null hypotheses has been framed: Ho1: There is no significant difference between reasons for using cosmetics products and marital status of the respondents.

Table 4 T- Test for Reasons for Using Cosmetic Products on the Basis of Marital Status Marital t- P- S.No. Reasons N Mean S.D SE Status M Value Value Transparency and Married 80 13.221 3.212 0.12 1 0.061 0.942 Traceability Single 45 11.023 3.524 0.11 Married 70 13.014 3.012 0.14 2 Green Formulations 2.722 0.005 Single 34 10.234 2.843 0.12 Married 59 12.572 2.672 0.15 3 Sustainable Packaging 0.577 0.551 Single 30 9.023 2.321 0.13 Married 52 12.190 2.890 0.58 4 Water Management 0.671 0.500 Single 40 9.460 2.456 0.16 5 Social Impacts Married 58 12.220 2.210 0.62 1.024 0.142 Single 36 12.131 2.321 0.12 6 Product Preservation 1.021 0.121 Married 30 9.023 2.342 0.22 Single 26 12.011 2.014 0.47 1.203 0.452 7 Fragrance Allergy Married 21 7.123 2.010 0.14 Total 581 12.014 2.321 0.16 0.642 0.536 Source: Computed from Primary data It is observed from the Table 4 show that the cosmetic products among female students regarding, Transparency and Traceability, Green Formulations, Sustainable Packaging, Water Management, Social Impacts, Product Preservation and Fragrance Allergy their respective

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” calculated t- value of 0.942, 0.005, 0.551, 0.500, 0.142, 0.121, and 0.452 are not significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between reasons for using cosmetic products and marital status of the respondents is accepted. However, the consumption pattern of cosmetic products and the calculated t- value of 2.722 are significant at five per cent level. Hence, the formulated hypothesis of that there is no significant difference between reasons for using cosmetic products and marital status of the respondents is rejected.

Summary of Findings  Majority of the female students of cosmetic products belong to the monthly family income group of above Rs.30,000 and most of the women customers of cosmetic products are residing in urban area.  Ranking is a relationship between a set of items such that, for any two items, the first is either ranked highest than, ranked lowest than or ranked equal to the second.  The formulated hypothesis of that there is no significant difference between reasons for using cosmetic products and marital status of the respondents is rejected.

Suggestions  Female students should check and verify the manufacturing and expiry dates, composition and other details of the product so that she may not worry about the after effects of the product.  Better knowledge about cosmetics will help the female students to perform their buying function very effectively. Therefore, female students should update their knowledge about cosmetics through various sources like advertisements, woman’s magazines and so on.  Beauty consciousness is the major reason which makes majority of the women customers purchases the cosmetic products. Hence, attempts are made to increase the beauty consciousness among the women customers through various sales promotional measures and suitable advertisements.  Managing brand loyalty implies a periodical assessment of the results obtained through specific strategies and of the level of brand loyalty among customers considering both functional and emotional perceived aspects related to the brand.  Today most customers include several brands in their brand set and these brands often have brand communities-groups of customers whose common theme is their usage of a particular brand.

Conclusion The present article paper concludes that, the researcher feels happy that the study has served the purposes for which it was carried out. The researcher has taken sincere efforts to study the chosen problem of cosmetic products among female students in the study area. The researcher hopes that the findings of the study would be the great help of the students’, manufacturers, government and the common public. The researcher strongly believes that if suggestions offered in the study are duly considered and necessary actions are subsequently taken by the concerned persons, the expectations pointed out by the respondents may come true and both the students and manufacturers will feel happy, contented and be self-confident

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References 1. Philip Kotler, “Marketing Management” 12th edition, Prentice Hall of India. 2. S.A. Sherlekar, “Modern Marketing Principles and Practices”, Himalaya Publishing House, Bombay. 3. Suja Nair, “Consumer Behaviour in Indian Perspective”, First Edition 2003, Himalaya Publishing House Pvt. Ltd. Mumbai. 4. G.C. Beri, “Marketing Research”, Edition 2004, Tata McGraw Hill Pub. Company Ltd., New Delhi. 5. Singh J.D. “A study of Brand Loyalty in India”, Indian Journal of Marketing Vol. II, Page 15 20. 6. Prof. S.S. Agarwal, “Brand Ambassadors & their impact on Consumer Behaviour” Indian Journal of Marketing Vol. 39, Dec 2009, Page 3 to 8.

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TRON CULTURE

E. Thambiraja, ME., M.Sc., M.Phil., MA., B.G.L., SET., Assistant Professor, Department of Mathematics Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam

J. Hari Narayanan PG Scholar, Engineering Design, Mechanical Department Government College of Technology, Coimbatore

Abstract Agriculture has the greatest and direct impact on the growth of our country. It faces problem in manpower and laziness makes poor initiation of new and small scale farmers in large number of farmers to work on their land in own with low investment. Agriculture and Small scale agriculture requires more effort, manpower and investments. To overcome those, our equipment uses just a modification to a cycle. This can be made with a simple used cycle parts. Hence, this results in very low cost while improving task speed comparing human work. This uses mechanical energy only, it is usable for Small scale agriculture and small scale purpose different tools are used as per desired use. It uses linear force of the user and transmitted through the elongated parallelogram with short diagonal attached frame to the spined wheel and tool attachment and can be moved with linear force from the user. As it moves the desired task gets done by the corresponding tool used. It uses special spine wheel made of metal for increased traction with the soil. This machines used for different agricultural and Small scale agriculture purposes at relatively low cost. The purpose includes tilling, weed removing, furrow making, small underground dry crop harvesting, rhizome harvesting etc.

Small Scale Agriculture Small scale agriculture is the practice of growing and cultivating plants as part of horticulture. In gardens, ornamental plants are often grown for their flowers, foliage, or overall appearance; useful plants, such as root vegetables, leaf vegetables, fruits, and herbs, are grown for consumption, for use as dyes, or for medicinal or cosmetic use. Small scale agriculture is considered to be a relaxing activity for many people. Small scale agriculture ranges in scale from fruit orchards, to long boulevard plantings with one or more different types of shrubs, trees, and herbaceous plants, to residential yards including lawns and foundation plantings, to plants in large or small containers grown inside or outside. Small scale agriculture may be very specialized, with only one type of plant grown, or involve a large number of different plants in mixed plantings. It involves an active participation in the growing of plants, and tends to be labor-intensive, which differentiates it from farming or forestry.

Construction Frame The illustrated tilling machine includes an elongated parallelogram with short diagonal attached frame supported that is from bicycle.

Fig: Cycle frame

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Common Measurements Frame size was traditionally measured along the seat tube from the center of the bottom bracket to the center of the top tube. Typical" medium" sizes are 54 or 56 cm (approximately 21.2 or 22 inches)

Spine Wheel Rolling movement by a ground wheel, rows of

Fig: Metal Rim ground penetrating and pulverizing tines on series circularly on outer edges mounted on a forward most end of the frame. It is known as spine wheel or metal spike wheel.

Fig: Spines

Tool Holder The tool holder is the part where the seat gets holded. Just remove the seat from the seat holder in the cycle by loosening the bolts used. Then make the tool to hold on that part. This helps to remove or change other desired tools for the desired task. This provides good interchangeability. Fig seat holder (before) Tools In Tron culture, we can use different types of tool like tilling tool, weed remover, potato harvester, etc. By using the tool holder we can replace the different types of tools. So there is no need for buying different Small scale agriculture machines for each purpose. Those different tools that are used in tron culture Fig tool holder (after) are shown below.

Fig Furrow maker Fig Weed Remover

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Fig:Tilling tool Fig Grass remover Fig Potato harvester

Handle The handle is the part which is used to hold the tron. Just move this equipment with the help of handle from the cycle. Then handle is used to apply the input force from the user or handler.

Materials Handlebars are most commonly made Fig Handle bar of aluminium alloys, but are also often made from steel, carbon fiber or .

Sizes There are several size parameters to consider when choosing a handlebar

Width Drop bars come in a variety of widths from 34 cm to 50 cm. Usually a user will pick a bar that approximately matches their shoulder width so that their arms can be approximately parallel. The width is measured at the end of the drop section. Some measure from outside edge to outside. Whereas others measure from center to center The figure returned by measuring outside to outside tends to be 2 cm greater than measuring center to center for the same handlebar.

Stem Clamp Diameter Care is needed when choosing a handlebar to match a stem, or vice versa, as there are several standards. The ISO standard for the stem clamping area of a handlebar is 25.4 mm (1"), which is used on mountain bikes and many Japanese-made road handlebar.

Description of the Invention The present invention relates to human operated soil tilling machines, and more particularly, to soil tilling machines of the type which are manually manipulated and controlled by a person walking with or behind the machine.

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Manually operated soil tilling machines of such type, which typically comprise a plurality of human driven tines for penetrating and pulverizing a layer of the earth over which the machine passes, commonly are of a size adapted for home garden or small area usage which does not permit or justify the expense of conventional farm type cultivating equipment. Because the size of such tilling machines must necessarily be limited to the extent that permits manual manipulation, such walk behind tilling machines often are-incapable of tilling the ‘soil to the degree or depth desired in a single pass. As a result, in use of such walk-behind type tilling machines, ‘it is frequently necessary to successively work each pass of the machine a number of times in order to achieve adequate tilling, usually with the tiller being controlled such that during each pass the machine penetrates a further relatively thin layer of earth and further breaks down the clumps of the previously worked track. When attempts are made to operate conventional tilling machines to deeper depths or to drive the tines with greater power, such machines become increasingly difficult to control with the tines frequently tending to pull the machine forward instead of tilling the soil (referred to as walking), or create such thrust forces that the machine is difficult to maintain in a straight track. The foregoing problems are compounded when the tilling machine is used in wet clay or other soil conditions that are difficult to penetrate or break down. It is an object of the present invention to provide a manually operated, walk-behind, type soil tilling machine which is capable of improved soil penetration and Pulverization Another object is to provide a tilling machine as characterized above which will thoroughly till soil to normal garden depths in a single pass of the machine so as to avoid the necessity for successive or multiple tilling operations. A further object is to provide a tilling machine of the above kind which can be controlled and manipulated with relative ease by an operator walking with the machine. A related object is to provide such a tilling machine which can be operated on most soil conditions at normal garden tilling depths without the machine tending to oppose motion of operator or veer from a straight track. Yet another object is to provide a tilling machine of the foregoing type which is adapted to leave the tilled soil in a smooth thoroughly pulverized condition without undesirable trenching. Referring now more particularly to the drawings, there is shown an illustrative soil tilling machine embodying the present invention. The illustrated tilling machine includes an elongated parallelogram with short diagonal attached frame supported for. The tools are attached to the net lower junction and a handle extending rearwardly of the frame for enabling a user to operate the machine while walking from behind or either side. The handle mounted permit access to the drive for the tines. Thus, the handle angle is adapted to focus the ground wheels through the frame to move the machine rolling movement by a ground wheel, a row of ground penetrating and pulverizing tines in series circularly on outer edges mounted on a forward most end of the frame along a track that is to be tilled by the rows of tines located on the ground wheel. In accordance with the invention, the tines in row have a cutting capability and the row is driven in rotative directions such that upon forward movement of the machine the row of tines break the surface of the ground and penetrate the earth to a determined relatively shallow depth and followed by tool thereupon penetrate the ground to a further determined depth, with the row of

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” tines cooperates to completely pulverize both layers of penetrated earth, thereby permitting thorough tilling of the soil to a normal garden depth with a single passage of the machine. The tool, like tilling tool, comprised by bolts as that of cycle seat installation and replacement In this instance, has a generally inverted U-shaped configuration with the forward tine axle rotatably disposed in depending legs of the U- housing. A center portion of the wheel is mounted between the frame supports by Fig Tron Culture balls, cones and bolts.

Design Calculation Explaining the operation of the tiller, the equipment was designed according to mechanical advantage formula (‘MFR’:M=Moment, F=Force and R=Radius). Using the machine, farmers can get more work done with less efforts The tiller is made of iron rods of 40 cm radius bent in a circular shape, while spikes are attached on its circumference at 30 to

40 degree angle. Fig Design of Tron Culture When the radius is increased, the movement of the tool also increases. The same formula is adopted for tractors to get higher mileage. The rotation of the ploughing tool increases and soil is tilled to a greater depth. α - Angle between the lines joining centre of wheel to handle and point of wheel on soil to handle or angle CHG. β – Angle between the lines joining point of wheel on soil to handle and point of tool attached to handle or angle GHT. γ – Angle between the tangent normal of the rim and spine or angle SON.

-Distance between the points C and G.

- Distance between the points G and T. The angle of incidence of input power needs to be focused towards a point between C and T. If the angle of incident of force input lies in the area of the angle α,  It focusses towards easy movement and light working  More force is transmitted to the wheel.  If the angle of incidence lies in the area of the angle β  It focusses on trench working.  More amount of force transmitted to the tool. The angle of spine with the normal to the tangent γis kept at to .

- Force input

- Force input to wheel or drive

- Force input to tool

- Force opposing motion

Fig 5.2 Force acting - Force due to tool action The above diagram shows the forces acting in the frame used.

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Cost Estimation Used cycle frame 150/- onwards Spine wheel material 120/- Spine wheel welding 150/- Tools material 90/- onwards Paint 30/- Total cost 540/- onwards Fig 6.1 cost comparison

Table Cost Estimate We made this equipment with just the cost as above. This is possible by the usage of used cycle parts. On comparing with the commercial power equipped tillers and weed removers it is just 1 to 5 % the price. People those who are willing to do Small scale agriculture can make use of this equipment at this cost. Even manpower Small scale agriculture equipment’s price starts from rupees 7499/- like earth way Kentucky high wheel walk behind cultivator model #6500

Advantage& Application Advantages 1. 1reduces labour, saves time 2. Saves fuel save an average 3.5 gallons an acre or 1,750 gallons on a 500-acre farm. 3. Redues machinery wear 4. Improves soil tilth 5. Increases organic matter 6. Traps soil moisture to improve water availability 7. Reduces soil erosion 8. Improves air quality 9. Health taken care off

Application This simple machine which can act as different farming tools by simply changing their tools. Rotary tiller or the manual tiller can be used for cultivation of paddy, chilli, tobacco and horticulture crops. The different applications are as follows:

Ploughing The process of loosening and upturning the soil is called ploughing. Ploughing is done by using a plough, which is made of either wood or iron. The ploughing of small fields is done with the help of animal which large fields are ploughed using a tractor.

Ploughed soil becomes soft and porous. Fig Ploughing Furrow Making Furrow making is the process which makes for cutting the groove in the foot of type. This process involves loosening and make separate path in soil for planting of weeds Fig Furrow Making

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Weed Removing Weed removing is the process removal of unwanted plants from the selected area. In gardens, there is more unwanted plants will grow which affect the growth of main plant. This tool is used to remove weeds simply.

Harvesting Fig Weed removing Harvesting is the act or process of gathering a ripe crop from the fields. Reaping is the cutting of grain or pulse for harvest, typically using a scythe, sickle, or reaper.

Conclusion This project is aimed to help and support Small scale agriculture by people. It makes Small scale agriculture easier and simpler for the gardener with,  It is simple to make because it just needs assembling parts that we have already or that is made available easily.  It can also be made on their own, due to its simple construction or the modification.  The cost of making this is very low. So that it can be afforded by all range of people.  It is of the walk-behind type of cultivator. Which is simple and easy to operate.  It has wide range of application as discussed.  Easy to carry or to move from one place to another due to its light weight.  There is no fuel or power is been used.  It is just a one time investment.  It also acts as a calorie burner, which concerns with health of people or user.

References 1. Soil tilling machine by Dankel of US in September 6, 1983. 2. Tilling machine transport and storage apparatuses and methods by Vaughn et al of US in January 11, 2011. 3. Counter rotating twin shaft system for Small scale agriculture machine by Lee et al of US in October 11, 1994. 4. Tilling machine, method of use and method of Small scale agriculture by McClure of US in February 11, 2003. 5. Manual tiller by Karthik and Kiran of vijayawada in September 14, 2015.

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FARMERS’ PERCEPTION AND AWARENESS TOWARDS CROP INSURANCE IN VILLUPURAM DISTRICT

R. Rajeswari PG & Research Department of Commerce, A.A.G.A.College, Villupuram

Abstract Agriculture is synonymous with risk and uncertainty all over the world because agriculture is subject to vagaries of nature. Agriculture contributes to 24 per cent of the GDP and any change has a multiplier effect on the economy as a whole. Crop insurance in India was started Comprehensive Crop Insurance Scheme. The scheme provides comprehensive risk insurance against yield losses viz.: Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, Inundation and Landslide, Drought, Dry spells, Pests/Diseases etc. The objectives of the study are the level of awareness and perception of the farmers about crop insurance in Villupuram District. For this purpose of the study 240 sample farmers were selected through convenient sampling techniques in villupuram District. It is found that out of 240 respondents, only one –third of sample farmers have crop insured and two third respondents don’t have crop insured, 40 percent of farmers are low level aware 37.5 percent of farmers are not aware about the crop insurance scheme and also found that majority of farmers’ gets sources of information about crop insurance scheme through bank and finance institutions because the farmer availed credit facility, the primary inconvenience and discomfort in crop insurance was ‘High Premium rate’ followed by ‘Loss assessment/valuation, less awareness and Low Sum assured.

Introduction Agriculture is synonymous with risk and uncertainty all over the world because agriculture is subject to vagaries of nature. Agriculture contributes to 24 per cent of the GDP and any change has a multiplier effect on the economy as a whole. Economic growth and agricultural growth are inextricably linked to each other. Agricultural production implies an expected outcome or yield. Variability in outcomes from expected those which are expected poses risks (Harwood et al 1999). Generally farmers produce various commodities and often make decisions under the conditions of risky environment. The consequences of the decisions made by the farmers are not known with certainty and the result may be better or worse than the expected. Variability in prices and yields are the major types of risks in agricultural production. This may be due to several factors like rainfall, temperature, diseases, pests and the like. Sometimes, fire, wind, theft and other casualties are also leads to variability in yield and production. Risk management in agriculture are informal mechanism like avoidance of highly risky crops, diversification across crops and across income sources to formal mechanisms like agriculture insurance, minimum support price system and future’s markets. Crop insurance in India was started with the introduction of the All-Risk Comprehensive Crop Insurance Scheme (CCIS) that covered the major crops in 1985 and later substituted and replaced by the National Agricultural Insurance Scheme that came into effect from 1999.The scheme provides comprehensive risk insurance against yield losses viz.: Natural Fire and Lightning, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, Inundation and Landslide, Drought, Dry spells, Pests/Diseases etc.

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Objectives of the Study The following objectives are framed for the present study  To measures level of awareness of farmer about crop insurance in Villupuram District.  To analysis the farmer perception towards crop insurance in Villupuram District.

Methodology Villages from villupuram district were selected for the study because this district has the maximum area of cultivation in various crops. For this purpose, 240 sample farmers were selected on the basis of convenient sampling method.

Results and Discussion The results of the survey have been discussed in farmers’ awareness and perceptions towards crop insurance. Table 1 Size of Land Holder among Sample Respondents Size categories No. of % Sizes of the land holdings are very important (Hectares) Respondents behavior change of cultivation and risk management. 0.o1 – 2 102 42.5 2.01-4 72 30.0 The above Table -1- reveals that Out of 240 samples, 4.01-6 46 19.2 42.5 percent of sample respondents have below 2 >6 20 8.3 hectares, 30 percent of sample respondents have Total 240 100.00 between 2 -4 hectares, 19.2 percent of sample respondents have between 4-6 hectares, and 8.3 percent of sample respondents have above 6 hectares.

Table 2 Awareness about any Risk Measures Implemented By Govt/Bank/ Organization

No Respondents Table 10 indicates that awareness

among the farmers about crop insurance

Size Categories

(Hectares) and risk management measures

Not Not Not Total

Total implemented by the government was high

Aware Aware Insured Insured at about 136 respondents out of 240 0.01-2 52 48 102 34 68 102 respondents. Awareness has been more in 2.01-4 40 32 72 24 48 72 farmers among land holding below two 4.01-6 28 18 46 14 32 46 hectares. It is also noted that out of 240 >6 12 8 20 8 12 20 respondents, only one –third of sample Total 132 108 240 80 160 240 respondents have crop insured and two third respondents don’t have crop insured.

Table 3 Level of Awareness about Crop Insurance Products/Schemes Level of No. of The results are presented in Table 3 the farmers’ % Awareness Respondents awareness about crop insurance schemes or products High 24 10.0 implemented by the government and financial institutions. Medium 30 12.5 The above Table 3 reveals that 40 percent of respondents are Low 96 40.0 low level aware. Followed by 12.5 percent of respondents are Not aware 90 37.5 medium levels aware, 10.0 percent of respondents are high Total 240 100 levels aware and 37.5 percent of respondents are not aware about the crop insurance scheme.

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Table 4 Source of Information about Insurance Products No. of Sources % Table 4 infers that out of 75 respondents who aware Respondents crop insurance, 42.7 per cent of the respondents are News paper 20 13.3 Banks 64 42.7 aware about crop insurance scheme through bank and Fellow farmers 24 16.0 credit institutions, 16.0 per cent of the respondents are Radio 20 13.3 aware by Fellow farmers, 13.3 per cent of the TV 22 14.7 Total 150 100.00 respondents are aware through Newspaper and Radio, 14.7 per cent of the respondents are get awareness from television. It is concluded that majority of respondents’ gets sources of information about crop insurance scheme through bank and finance institutions because the farmer availed credit facility.

Table 5 Farm Risks and Associated Loss among Sample Farms No. of Types of risk % Above table -5 This is evident in the results of the Respondents present study also as reported by 45.8 per cent of the Drought 110 45.8 farmers about the incidence of drought and by 13.4 per Flood 32 13.4 Cyclone 38 15.8 cent of the farmers about the incidence of flood, About Pests 60 25.0 25.0 per cent of the farmers (30 farmers) reported the Total 240 100.0 occurrence of pests risk every year or every alternate year at least at the yield loss and 15.8 per cent of the farmer affect loss by cyclone.

Table 6 Satisfaction of Respondents towards Agricultural Insurance Responses No. of % The responses of the farmers on satisfaction over the Respondents crop insurance are presented in Table 6. Less than one third Satisfied 78 32.5 of the respondents (32.5 per cent) only could express their Not satisfied 162 67.5 satisfaction and 67.5 per cent of the respondents expressed 240 100 dissatisfaction over prevailing crop insurance products and schemes for many reasons as many as seven in total

Table 7 Identifying Primary Inconvenience and Discomfort in Investment Opinion The responses of the farmers’ opinion on Limited Crops covered 3.83 743.0 5 crop insurance are presented in Table 6. From Low Sum assured 3.60 1822.0 4 the ordering of items based on the average High Premium rate 1.50 2340.0 1 rank, it is found that the primary inconvenience Complexities Claim procedure 5.80 1975.0 7 and discomfort in crop insurance was ‘High Documentation procedure 4.77 2479.0 6 Premium rate’ followed by ‘Loss Low awareness 3.27 2222.0 3 assessment/valuation, less awareness and Low Loss assessment/valuation 2.73 2979.0 2 Sum assured. It is further found that the least inconvenience and discomfort in crop insurance is in ‘Complexities Claim procedure’ followed by ‘Documentation procedure’ and ‘Limited Crops are covered’

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Conclusion This present article concluded that, the various schemes launched from time to time in the country agriculture insurance have served very limited purpose and low awareness. The coverage in terms of area, number of farmers and value of agricultural output is very small, payment of indemnity based on area approach miss affected farmers outside the compensated area, and most of the schemes are not viable. Expanding the coverage of crop insurance would therefore increase government costs considerably. The committees set up by the government to suggest measures to reform the scheme have put forth comprehensive recommendations broadly including steps like lowering the insurance unit to village panchayat, provision for mid- season on account payment of claims, coverage to perennial crops, covers for pre-sowing and postharvest losses, more appealing guaranteed yields, transition to actuarial regime with varying levels of premium subsidy, etc. A restructuring of the yield insurance scheme on these lines is likely to improve its prospects and meet the reasonable aspirations of the farmers.

References 1. Barnett PA, Coble KH (1999). Understanding Crop Insurance Principles: A Primer for Farm Leaders, Mississippi Satae Research Report No: 209, USA. 2. Bhende MJ (2005). Agricultural insurance in India: Problems and Prospects, NABARD Occasional Paper No. 44. 3. Governmnet of India, The Working Group on Risk Management in Agriculture, Report prepared for the Eleventh Five Year Plan (2007-2012), Planning Commission, GoI, New Delhi. 4. Nair, Reshmy. (2010). Crop Insurance in India: Changes and Challenges, Economic and Political Weekly, XLV (6) : 19-22. 5. Sinha, Sidhardh. (2007). Agricultural Insurance in India. Working Paper Series, Centre for Insurance and Risk Management, Institute for Financial Management and Research, Chennai.

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STUDIES ON THE EMPIRICAL AN ORGANIZATIONAL CLIMATE OF THE SELECT SUGAR MILLS IN TAMILNADU

R. Chitra Assistant Professor, Bharathiyar Arts & Science College (W) Deviyakurichi, Tamil Nadu, India

D. Rajakumari Research Scholar, Bharathiyar Arts & Science College (W) Deviyakurichi, Tamil Nadu, India

Abstract India is predominately an agro based economy. Sugarcane plays a vital role in the agro based economy by providing sugar, the main sweetener used in India. With the growing demand for sugar, the emphasis has been on increasing sugar production. India is the second largest producer of sugar over the globe. With more than 45 millions of sugar cane growers in the country, the bulk of the rural population in India depends on this industry. One of the major agro-based industries in India, sugar industry is the second largest agricultural industry followed after the textile industry. It will also ensure saving in foreign exchange. Employment benefit to local communities will grow exponentially as raw material base is agriculture. Curing: An m/c will be cured in flat bottom centrifugal machine and time cycle of an m/c will be adjusted according to quality of dropping sugar without any lumps. Conveying: Sugar will be conveyed in sugar hoppers blowing hot and cold air. Grading: Six deck grader fitted with different mesh size screens will be used for gradation of sugar in different grades. However, since the amount of bags available is very large, thermal systems have been designed to be very inefficient, so as to reduce the left over bagasse, which has otherwise to be burnt separately. While some mills optimize the use of bagasse for surplus electricity production, in most mills technical optimization could generate a (larger) bagasse surplus that could be used for other applications like generating additional electricity, production of pellets, or additional ethanol production through second generation technologies. Keywords: Agriculture, Grading, Bagasse, sugar

Introduction The fast changing world and face of various economies have generated a lot of complexities in the global business environment. Evolving social and political issues such as global warming, international trade expansion, emerging competitors, and the rapid growth of scientific and technological knowledge require organization to reinvent the way they do business and rethink the business they are in. In a fiercely competitive global setting, achieving organization effectiveness and managing employees are prerequisites for organizational survival. In such a situation of precariousness, gaining competitive advantage and excellence will be the major guiding force in all types of organizations. Among various factors, attitude of the individuals on their jobs and job experiences have been found to be significantly affecting their behaviors. One of the organizational behaviors concepts that has attracted increasing attention, both theoretical and empirical, is organizational climate. The climate is a relatively enduring quality of the organization which is experienced by is members; it has an effect on their behavior, and how the organization functions.

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Organizations in the 21st century are facing more challenges than even before. To survive and outdo their competitors, organizations are constantly seeking to improve their performance. Organizational climate is becoming more important because organizations need to ensure that those individuals who add value to the bottom line should stay in the organization and continue pouring their efforts into their work to benefit the organization. High performing organizations have climates with particular measurable characteristics, which are directly affecting the key business performance measures. Organizational climate allowing a high degree of autonomy and nurtures relationships among peers, supervisors and subordinates results in more satisfied workers. Organizations that are able to create environments that employees perceive as being and in which they are able to achieve their full potential are seen as a key source of competitive advantage.

Scope of the Study The scope of the study is to examine the organizational climate of the select sugar mills in Tamilnadu. In the present study, 14 factors that influence the organizational climate such as role clarity, respect, communication, reward system, career development, planting decision making, innovation, relationships, teamwork and support, quality of service, conflict management, commitment and morale, training and learning, and direction are only studied.

Concept of Organizational Climate The concept of organizational climate was first developed from the social science field research and human motivational theory of Lewin. He defined organizational climate as “a group of measurable characteristics that members could perceive directly or indirectly in the work environment”. Organizational climate is the result of widely accepted ideas about the way things get done. Organizational climate is psychological, multidimensional and complex phenomenon that has an effect of learning, performance, turnover, absenteeism, and tenure”. Organizational climate is defined as a set of attributes specific to a particular organization that may be induced from the way that organization deals with its members and its environment. Organizational Climate consists of a set of characteristics that describe an organisation, distinguish it from other organizations are relatively enduring over time and influence the behavior of people in it. Organizational climate is the perceived, subjective effects of the formal system, the style of managers, and other important environmental factors on the attitudes beliefs, values and motivation of people who work in a particular organization. It describes the personality of the organization and influences the motivation and behavior of the members of the organization.

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Fig.1 Manufacturing process Flow Chart Fig.2 Refined sugar manufacturing process

Characteristics of Organisational Climate The nature of organizational climate will be clear from the following characteristics: General Perception Organizational climate is a general expression of what the organisation is. It is the summary perception which people have about the organisation. It conveys the impressions people have of the organizational internal environment within which they work. Abstract and Intangible Concept Organizational climate is a qualitative concept. It is very difficult to explain the components of organizational climate in quantitative or measurable units. Unique and District Identity Organizational climate gives a distinct identity to the organisation. It explains how one organisation is different from other organisation. Enduring Quality Organizational climate built up over a period of time. It represents a relatively enduring quality of the internal environment that is experienced by the organizational members. Multi-Dimensional Concept Organizational climate is a multi- dimensional concept. The various dimensions of the organizational climate are individual autonomy, authority structure, leadership style, pattern of communication, degree of conflicts and cooperation etc.

Conclusion The study is concerned with employees’ perception towards organizational climate, rather than how it is reported by the trade unions and top management of the select sugar mills. Hence, the study will have following limitations: 1. In any study having a bearing on attitude, incomplete and non-responses to some questions could not be avoided. However, considerable care will be exercised in making the study as objective and systematic as possible. 2. The study has the limitation of time and resources, usually faced by the researchers. Only 600 employees of the 6 sugar mills will be selected and studied. Hence, this study lacks generalizability because its purpose is to produce deeper understanding and rich description of phenomena in a local context specifically the phenomena of organizational climate of the sugar mills in a single state.

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References 1. Schneider B and C.J. Bartlett, 1968. “Individual Differences and Organizational Climate I: The Research Plan and Questionnaire Development”, Personnel Psychology, 21, pp.323-333 2. Schneider B and C.J.Bartlett, 1970. “Individual Differences and Organizational Climate, II: Measurement of Organizational Climate by the Multitrait Multriater Matrix”, Personnel Psychology, 23, pp.493-512 3. Charles E.Becker, “Deciding When it is Time for a Change in Organizational Climate”, Personnel Journal, Vol.52, No.3, pp.25-31. 4. Denison, D.R. 1996. What is the difference between Organizational Culture and Organizational Climate? A native’s point of view on 5. Hooshang.J., 1983 Managerial Effectives in Relation to Personality, Occupational Goal Values, Leadership style and Organizational climate in Educational Institutions. 6. Joshi.R 1995. Managerial Effectives and its correlates”, Indian Journal of Industrial Relations, Vol.31 No.1. 7. Kishore and others, 1981. Study on Organizational Climate and Job Satisfaction among executives and supervisors, Indian Manager PP 189-201. 8. Laffollette, 1975 is satisfaction Redundant with organizational climate? Organizational Behavior and Human Performance, VOL.13 pp 257-78. 9. Lahiri, D.K. and Srivastava.S., 1967. Determinants of satisfaction in Middle Management Personnel, Journal of Applied Psychology, 51(3). 10. William F.Joyce and John W.Slocum, Jr. 1984. “Collective Climate: Agreement as a Basis for Detaining Aggregate Climate in Organizations”, Academy of Management Journal, 27, pp.721-742

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A STUDY ON MEASURING OF FINANCIAL PERFORMANCE OF SELECTED PUBLIC SECTOR BANKS IN INDIA – CAMEL ANALYSIS

K. Premalatha Ph.D. Research Scholar

Dr. D. Ganesan Associate Professor, HOD & Research Guide Department of Commerce, A.A. Government Arts College, Villupuram

Abstract The aim of this paper is to analyze the financial performance of Five Selected Public Sector Banks in India. I.e. State Bank of India, Bank of Baroda, ICICI Bank, Bank of India and Punjab National Bank over a period of five years 2012-13 to 2016-17 in Indian Banking Sector. For this reason, Camel Rating Analysis approach has been conducted. For this study I have chosen an appropriate ratios of such as, Total advances to Total Assets ratio to reveal a capital adequacy, Total investments to Total Assets Ratio to knew the Asset Quality, Cost to income Ratio tells about the Management Quality, Return on Asset & Return on Equity will shows the banks Earnings / Profitability and Loan to Deposit Ratio depict the Liquidity position of the banks. From this study I have found that, all the five selected banks are basically sound in two respects I.e., Sound in Management Quality & safe from Liquidity position and having a sufficient return on equity too .In return on assets SBI, BOB, PNB is better when compared to IDBI and BOI. While coming to operating cost SBI, IDBI, BOB, and BOI shows an increasing cost when compared to PNB. Only IDBI, BOB, and BOI are comparatively good in position when compared to SBI and PNB in Capital Adequacy. Keywords: Capital Adequacy, asset Quality, Management Ability, Earnings and Liquidity.

Introduction The public banking sector is treated as the back bone of an economy. In the same way there are several types of banks (State bank of India, IDBI, PNB, BOB, and BOI) in India are in growing position in our country. To measure the financial performance I have chosen randomly the above said banks and executed the CAMEL rating system through ratio analysis. Camel stands for Camel Analysis stands for

Components of Camel Rating System Alphabet Stands For Capital Adequacy-C C Judgment of Capital Adequacy Capital Adequacy has come forth as one of the A Judgment of Asset Quality prominent indicator of the financial health of the M Judgment of Efficiency and banking sector. It is very useful for a bank to Quality Management conserve and protect stakeholder’s confidence E Judgment of the Volume and and preventing the bank risk from being level of earnings bankrupt. It reflects whether the bank has enough L Judgment of strength and capital to bear unexpected losses arising in the level of liquidity future .In this study, capital adequacy is measured by using Total Advances to total Asset ratio.

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Asset Quality-A The quality of the asset is an important parameter to examining the degree of financial strength. The foremost objective is to measure the asset quality is to ascertain the composition of non-performing assets (NPAs) as a percentage of total assets. Management Quality-M Management efficiency is an important component of the camel model that guarantee the growth and survival of a bank. Management efficiency means adherence with set norms, ability to plan and respond to changing environment leadership and administrative capability to the bank. Earning Quality-E The quality of earnings is very important criterion which represents the quality of a bank’s profitability and its capability to maintain quality and earn consistency. It primarily determines the profitability of bank and explains its sustainability and growth of future earnings. Liquidity-L Risk of liquidity can have an effect on the image of bank. Liquidity is a crucial aspect which reflects banks’ ability to meet its future obligation. An adequate liquidity position means a situation, where organization can obtain sufficient liquid funds, either by increasing liabilities or by converting its assets quickly into cash

Statement of the Problem In the ongoing economy, the role of public sectors banks is playing a dominant role in financing to the public , the burning problem of banks due to demonetization and digital financing is a relevant factor in the normal functioning of the banks due to new technology advancement the former employees are to enriched in developing their skills . I took the camel analysis to know about the selected five public sector banks efficiency and administration quality of the banks.

Objectives of the Study The main objective of this research paper is to analyze the financial performance of selected public sector banks in India based on camel rating analysis and suggest some measures to improve in the weaker sectors.

Methodology Basically, This Study is Descriptive, Analytical and Empirical in nature and executed using the published Financial Statements of Banks.

Data Sources The study is purely based on secondary in nature. The financial data of selected banks have been collected from the financial statements of the respected banks. The financial statement has been collected from the official website of selected banks .i.e. 1.www.SBI.ac.in 2. www.idbi ac.in 3. www.BOB.ac.in.4. Pnb.ac.in 5. Bank of india.ac.in.

Study period An five year period from (2012-13 to 2016-17) has been selected for evaluating the financial performance of selected public sector banks in India

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Data analysis tools CAMEL Parameter Ratios Camel test consists of Capital Adequacy, Asset Capital adequacy 1.Total Advances to Total assets ratio Quality, Management Quality, Assets Quality 2.Total investments Total Assets Ratio Earning Ability, and Liquidity. Management Quality 3.Cost to income Ratio I would like to utilize six ratios Earning performance 4.Return on Asset that define their respective 5. Return on Equity parameters of CAMEL. They are Liquidity 6. Loan to Deposit Ratio mentioned in the following

Data analysis &interpretation Capital Adequacy-C Table Total advances to Total Assets ratio

Source: Published Annual Reports of the above said banks

13 14 15 16 17

- - - - -

2012 2013 2014 2015 2016

Name ofName bank/ Year bank/ SBI 0.66 0.6 0.59 0.64 0.63 IDBI 0.67 0.6 0.6 0.63 0.64 BOB 0.63 0.58 0.59 0.63 0.64 PNB 0.62 0.57 0.57 0.61 0.58 BOI 0.58 0.52 0.55 0.58 0.58

Interpretation Capital Adequacy is measured by using total advances to total assets ratio from the above table &charts it is found that capital adequacy ratio is well and IDBI,BOI has increased to 0.64. comparatively even though capital adequacy is decreased in the year 2013-14 and 2014-15 of all selected five banks, it is having an increasing range in the year 2015-16 to 2016-2017. PNB has decreased in the year 2016-17 to 0.58. Only IDBI, BOB, and BOI is comparatively good in position when compared to SBI & PNB

Asset Quality-A Table Total Investment to Total assets Ratio

Source: Published Annual Reports of the above said banks

13

14 15 16 17

-

- - - -

2012

2013 2014 2015 2016

Name ofName bank/ year bank/ SBI 0.22 0.3 0.22 0.27 0.2 IDBI 0.22 0.31 0.17 0.26 0.19 BOB 0.23 0.27 0.16 0.24 0.19 PNB 0.24 0.24 0.17 0.23 0.19 BOI 0.28 0.25 0.18 0.25 0.2

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Interpretation This performance parameter will benefit the bank in understanding the amount of funds that have been reserved by the banks in the event of bad investments. From the above table and charts I have found that, these selected five public sector banks i.e. SBI, IDBI, BOB, BOI, &PNB keep ratio below 2%. This ratio is better to keep as lower as possible so it can say less than 2% indicates good performance.

Management efficiency-M Table Cost to Income Ratio Source: Published Annual Reports of the above said banks Year SBI IDBI BOB PNB BOI 2012-13 49.41 36.48 39.79 42.81 41.69 2013-14 54.33 36.88 43.44 45.06 44.3 2014-15 51.44 41.28 43.63 46.74 51.93 2015-16 52.21 43.47 50.3 46.79 60.75 2016-17 53.68 52.89 45.86 39.17 47.67

Interpretation From the above table and charts, it is found that, COSR is increasing moderately with slight fluctuation of the following banks. In 2012-13 SBI, IDBI, BOB, and BOI ratio was 49.41, 36.48, 39.79 and 41.69 was raised to 53.68, 52.89, 45.86 and 47.67 respectively.PNB it shows a less cost and reduced from 2012-13 ratios of 42.81 to 39.17 in the year 2016-17.

Table Return on Assets Ratio Source: Published Annual Reports of the above said banks Year SBI IDBI BOB PNB BOI 2012-13 0.97 0.61 0.9 1.01 0.66 2013-14 0.65 0.34 0.75 0.65 0.53 2014-15 0.68 0.25 0.49 0.53 0.29 2015-16 0.45 -1 -0.78 -0.63 -0.99 2016-17 0.41 -1.4 0.2 0.19 -0.25

Interpretation The ratio reflects the return on assets employed or the efficiency in utilization of assets; it is calculated by dividing the net profit by total assets of the bank. Higher the ratio reflects better earning potential of the bank in the future. From the table it is clear that SBI, BOB, and PNB ratio has reduced from 0.97, 0.9 and 1.01 in the year 2012-2013 to 0.41, 0.2, and 0.19 respectively. But IDBI and BOI have reduced to -0.4 and -0.25 in the year 2016-17. SBI, BOB and PNB are better on return on assets when compared to IDBI and BOI.

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Table Return on Equity Ratio Source: Published Annual Reports of the above said banks Year SBI IDBI BOB PNB BOI 2012-13 15.43 10.16 15.68 16.48 12.95 2013-14 10.03 5.42 13.8 10.17 11.16 2014-15 10.62 3.92 9.21 8.48 6.32 2015-16 7.3 -16.37 -14.4 -10.87 -23.02 2016-17 6.97 -26.28 3.8 3.6 -6.22

Interpretation According to the above Table and charts, ROE is decreasing which is better because the lower the ROE indicates the better performance of the bank, In 2012-13, the ratio of SBI, IDBI, PNB, BOI was 15.43, 10.16, 16.58, and 12.95 which was decreased to 6.97, -26.28, 3.6 and -6.22 in 2016-17, only BOB shows an slight increase in ROE i.e. 3.8 in the year 2016-17.

Liquidity-L Table Loan to Deposits Ratio

Source: Published Annual Reports of the above said banks

13 14 15 16 17

- - - - -

2012 2013 2014 2015 2016

Name ofName bank/ year bank/

SBI 0.14 0.13 0.13 0.19 0.16 IDBI 0.29 0.26 0.24 0.27 0.21 BOB 0.06 0.06 0.06 0.06 0.05 PNB 0.1 0.11 0.09 0.11 0.07 BOI 0.09 0.1 0.08 0.1 0.07

Interpretation Deposits are one of the main sources of income to the banks. Reduction in the lending operation shows the good position of the bank and profitability of the bank such as interest, shares etc., From this table, it is depicted that all the selected public sector banks shows a reduction in the ratio.

Findings & suggestions 1. Only IDBI,BOB, and BOI is comparatively good in position when compared to SBI &PNB. 2. SBI, IDBI, BOB, BOI, &PNB keep ratio below 2%. The ratio is better to keep as lower as possible so it can say less than 2% indicates good performance. 3. In 2012-13 SBI, IDBI, BOB, and BOI ratio was 49.41, 36.48, 39.79 and 41.69 was raised to 53.68, 52.89, 45.86 and 47.67 respectively.PNB it shows a less cost and reduced from 2012-13 ratios of 42.81 to 39.17 in the year 2016-17. 4. Higher the ratio reflects better earning potential of the bank in the future. It is clear that SBI, BOB, and PNB ratio has reduced from 0.97, 0.9 and 1.01 in the year 2012-2013 to 0.41, 0.2, and 0.19 respectively. But IDBI and BOI have reduced to -0.4 and -0.25 in the year 2016-17. SBI, BOB and PNB are better on return on assets when compared to IDBI and BOI.

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5. ROE is decreasing which is better because the lower the ROE indicates the better performance of the bank, In 2012-13, the ratio of SBI, IDBI, PNB, BOI was 15.43 , 10.16, 16.58,and 12.95 which was decreased to 6.97, -26.28, 3.6 and -6.22 in 2016-17, only BOB shows an slight increase in ROE i.e 3.8 in the year 2016-17 . 6. Reduction in the lending operation shows the good position of the bank and profitability of the bank such as interest, shares etc., From this table, it is depicted that all the selected public sector banks shows a reduction in the ratio.

Suggestions SBI and PNB should concentrate on capital adequacy to meet the interest of the investors in future. Even though the asset quality shows good performance of all the five selected public sector banks, the operating cost is increasing year by year the bank should have to control over the operating cost of income .measures should be taken by the respective banks to increase the efficiency and profitability.

Conclusion To uplift the economy of the country, financial sector is required to be developed. In this condition, the banking sector must be given priority to attain sustainability in financial sector, so the smooth and efficient operation of banking sector helps to reduce the risk of failure of an economy. Therefore the performance of public banking sector always is a source of interest for researchers to judge the economic condition of a country, regulators of the banking sector always monitors the performance of the banks to ensure efficient financial system based on CAMEL model.

References 1. www.sbi.in 2. www.idbi ac.in 3. www.BOB.ac.in. 4. Pnb.ac.in 5. Bank of india.ac.in.

Abbreviations 1. SBI-State Bank of India 2. IDBI- Industrial Development Bank of India 3. BOB-Bank of Baroda 4. BOI-Bank of India 5. PNB-Punjab National Bank

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E-BANKING IN INDIA

M. Ragini Assistant Professor, Department of Commerce Rajeswari College of Arts and Science for Women, Bommayapalayam

Abstract Banking is the lifetime of an economy. A strong and healthy banking system is important requirement for economic growth. Indian banking industry, today is observing on IT revolution. The implementation of internet in banking organizations has modernized the banks. Implementing the e banking approach has benefited the both i.e. Consumers as well as banks. The concept of e banking is a fairly new one to Indian consumers as compared to its developed counterparts. Banks today operate in a highly globalized, liberalized, privatized and a competitive environment. In order to survive in this environment banks have to use IT. E-Banking is a generic term encompassing internet banking, telephone banking, mobile banking etc. through E-Banking the bank wants to introduce the core concept of IT based Enabled Services(ITES).Indian banks therefore need to aspire high and move toward implementing a world class internet banking capability. The progress in e banking in Indian banking industry is measured through various parameters such as computerization of branches, Automated Teller Machines, Transactions through Retail Electronic Payment Methods etc. The discussion concludes that concept of E-Banking is slowly gaining acceptance in Indian Scenario and efforts are being made by government agencies to make it more popular among consumers. Bill Gate’s now famous statement that “people need banking, not banks”.

Introduction A Sound and effective banking system is the backbone of an economy. E-banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. E- Banking is also known as Electronic Banking, online banking, internet banking, virtual banking etc. No country today has a choice whether to implement E- banking or not given the global and competitive nature of the economy. Banks have come to realize that survival in the new e- economy depends on delivering some or all of their banking services on the internet making provides new growth perspectives and internet business is a catalyst for new technologies and new business processes. With rapid advances in telecommunication systems and digital technology, E- banking has become a strategic weapon for banks to remain profitable. Online banking has become an accepted norm of monetary transactions for millions in India over the past decade. Online banking also provides a host ofnon-transactional features which are quite handy to the customer. However along with the world of conveniences this method of banking has a few inherent pitfalls which need to be understood in order to protect your money and avoid complications subsequently. The digital world is about relevance, about speed, about frictionless experiences. It is about transparency of security while assuring trust. These are major challenges to banks that are used to operating inside bricks-and-mortar offices. In order to grow in the evolving digital world, banks have to be fully digital. This means more than just applying “digital lipstick” with Internet and mobile banking. It means embracing digital thinking, enabling scalability, enhancing customer analytics and delivering services directly to customers at a time and place that suits them.

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E-Banking Functions  Account information and transaction history  Downloadable account overview, available in PDF format, Customizable account names  Online payments including currency conversion , Payment templates  Invoice payments including regular payments of e-bills  Ordering, blocking, unblocking and closing of payment cards  SMS bank activation, control, settings, loan applications, securities operations, online orders and notices to bank etc.

Features of E-Banking  Check your account balances, review activity, access account history and setup alerts  Transfer funds between accounts and to other Santander customers’ accounts  Transfer funds to an external checking, savings, or money market savings account at another domestic financial institution  Setup recurring and future dated transfers, View check images, reorder checks, pay bills  Receive e-bill sand reminders through bill pay  Change password, user ID, security image, security phrase, and challenge questions and answers for the online banking service  Online banking guarantee, retrieve user ID, Reset challenge questioned.

Forms of E-Banking  Internet banking: it helps you to manage many banking transactions online via your PC.  Automated Teller Machine (ATM): It is an electronic computerized telecommunications device that allows a financial institution customers directly use a secure method of communication to access their bank accounts, order or make cash withdrawals and also check their account balances without the need for a human bank teller.  Tele banking: By dialing the given Tele banking number through a landline or a mobile from anywhere, the customer can access his account and by following the user-friendly menu, entire banking can be done through Interactive Voice Response (IVR) system.  Smart Card: It contains an embedded8-bit microprocessor (kind of computer chip) under a contact pad on one side of the card. Microprocessor used for security replacing the usual magnetic stripe present on a credit or debit card.  Debit Card: It is like credit card or ATM card but withdrawn money within their savings money.  Credit Card: It is like debit card or ATM card but withdrawn money beyond their savings money with a limitations.  E-Cheques: It is the electronic version or representation of paper cheques.  Other forms of E-Banking: Direct Deposit, E-Bill payment, E-cheque Conversion.

Advantages of Internet Banking  Online account is simple to open and easy to operate.  It is quite convenient as you can easily pay your bills, can transfer funds between accounts etc. Now you do not have to stand in a queue to pay off your bills: also you do not have to keep receipts of all the bills as you can now easily view your transactions.

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 It is available all the time .i.e. 24x7. You can perform your takes from anywhere and at any time: even in night when the banks is closed or on holidays. The only thing you need to have is an active internet connection.  It is fast and efficient. Funds get transferred from one account to the other very fast. You can also manage several accounts easily through internet banking.  Through E- banking, you can keep an eye on your transactions and account balance all the time. This facility also keeps your account safe. This means that by the ease of monitoring your account at any time, you can get to know about any fraudulent activity or threat to your account before it can pose your account to severe damage.  It also acts as a great medium for the banks to endorse their products and services. The service includes loans, investment options, and many others.

Drawbacks of Internet Banking  Understand the usage of internet banking might be difficult for a beginner at the first go. Though there are some sites which offer a demo on how to access online accounts, but not all banks offer this facility. So, a person who is new, might face some difficulty.  You cannot have access to online banking if you don’t have an internet connection; thus without the availability of internet access, it may not be useful.  Security of transactions is a big issue. Your account information might get hacked by unauthorized people over the internet.  Password security is a must after receiving your password, do change it and memorize it otherwise your account may be misused by someone who gets to know your password inadvertently.  You cannot use it, in case the bank server is down and another issue is that sometime it becomes difficult to note whether your transaction was successful or not. It may be due to the loss of net connectivity in between, or due to a slow connection, or the Banks server is down.

E-Banking Services  Pay a bill: Electronic bill payment service allows a depositor to transfer money from his or her online account to a creditor or merchant. There is no need to stand in a long queue.  Transfer Funds: Quite often, the operations are performed in real time. You can make money transfers between your own accounts, or send money to a third party accounts as well. All you need is recipient/payee information and enough funds in your account.  Manage All Your Accounts in One Place: Online banking is an enormous time server because it provides a chance to handle a number of bank accounts(checking, savings, CDs, IRAs, etc.) from a single site. Most new accounts you open will be automatically added to OB (Online Banking).  View Images of Your Cheques Online: with online banking you can see and print scanned images of the front and back of all cheques you have written.  Apply Loan or Credit Card: by using online account, you can apply for a credit card or a loan (a car loan, education loan, a mortgage loan, home loan etc.) from the same bank.  View Up-to-the-Minute Account Statement and Balance: View all transactions and withdrawals everyday just by logging in to your online account.

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 Track your Payment History: Online banking provides an opportunity to look for your payments by transaction type, date, description or amount.  Take Advantage of Online Brokerage: Invest online, place and confirm trades 24 hours a day, seven days a week. Most banks offer wide range of money market instruments from various issuers.  Get Alerts: This service lets you to get timely e-mail messages from your bank about critical changes related to your internet accounts.  Verify Terms and Conditions: verify all information about your online whenever you forget your interest rates or payment due date.

Major Challenges Faced by E-Banking in India  Acceptance of Customer: proper understanding of the customer is the major aspect of the E- banking. Attitude of the Indian customer needs to be changed by giving awareness about technical terms in internet banking. Hence there is always lack of skilled personal and fear of technology.  Costly Technology: in connection with start-up cost e-banking is huge at initial level for acquiring personal computer and other equipment’s. The cost of maintenance of all equipment’s like modem, routers, bridges and network management systems is very high.  Issues in Security: Destruction of network resources disclosure, modification of data or fraud, denial in services and distortion of information. Providing appropriate security of using encryption techniques, implementation of firewalls and virus protection software.  Legal Issues: Information technology act or RBI suggested that criterion of Digital Signature Certification Board for authentication of electric records and communication with digital signatures.  Other Business Related Restrictions: Not all transactions can be carried electronically; many deposits and some withdrawal require the use of physical services. Some banks have automated to their customers but still largely depend upon manual process. Itresult, most of clientele or customer were restricted by lack and awareness and due to technical problems.  Transparency in Offering: Banks will strive to adopt best practices in corporate governance and corporate social responsibility this will build brand image and can help them to enhance their confidence of international investors. Banks much towards better corporate governance standards and adoption of uniform accounting standards and disclosure requirements.

E-Banking in India The Reserve Bank of India constituted a working group on E banking. The group divided the internet banking products in India into 3 types based on the levels of access granted. They are:  Information Only System: General purpose information like interest rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. There exist facilities for downloading various types of application forms. The communication is normally done through e-mail. There is no interaction between the customer and banks application system. No identification of the customer is done. In this system, there is no possibility of any unauthorized person getting into production system of the bank through internet.

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 Electronic Information Transfer System: The system provides customer – specific information in the form of account balances, transaction details, and statement of accounts. The information is still largely of the ‘read only’ format. Identification and authentication of the customer is through password. The information is fetched from the bank’s application system either in batch mode or off-line. The application systems cannot directly access through the internet.  Fully Electronic Transactional System: This system allows bi-directional capabilities. Transactions can be submitted by the customer for online update. This system requires high degree of security and control. In this environment web server and application systems are linked over secure infrastructure. It comprises technology covering computerization, networking and security, inter-bank payment gateway and legal infrastructure.

Upcoming Banking Technologies  Mobile and Digital Banking: The mobile and digital transformation in banking has only just begun and growth is already explosive. Banks are investing heavily in digital banking technology, in which customers use mobile, web or digital platforms to use banking services. In a Forbes survey on banking customer engagement from late 20177, 88 percent of banks indicated that these types of services represent their top technology investments.  Block chain Technology: It is set to fundamentally transform banking and financial services. It decentralizes financial management from a central authority to a widespread network of computers. Financial transactions are broken down into encrypted packets, or “blocks”, which are then added to the “chain” of computer code and encrypted for enhanced cyber security- it’s been compared to “email for money’ by block chain start up CEO blithe Masters .Because the technology has the potential to improve numerous facets of banking and is the basis for other banking technology trends like Bit coin- it’s no longer a question of it block chain will change the banking industry.  Upgraded ATMs: ATMs transformed the banking system when they were first introduced in 1967. The next revolution in ATMs is likely to involve contactless payments. Much like Apple pay or Google wallet, soon you will be able to conduct contactless ATM transactions using a Smartphone.  Proliferation of Non-Banks: banks are hoping that technology will allow them to deliver a faster, more transparent experience to consumers. A large portion of their resources, however, is necessarily dedicated to security, compliance, and other industry-specific requirements, which has allowed non-banks or financial service providers that are not regulated by the banking industry to flourish, according to a 2017 report from market intelligence firm Greenwich Associates.  Automated Financial Services Employees: The rise of financial technology will likely result in the reduction of in-bank personnel. A 2017 report from Citigroup indicated that a whopping 30 percent of banks jobs might be lost by 2025 due to the automation of retail banking services. Even behind the front line, financial services employees might step aside asrobo-advisers that manage your money continue to grow in popularity. Wealth front and Betterment, two robo-adviser companies, already have $4.65 billion and $7.36 billion in assets under management, respectively.

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Conclusion From all this, we have learnt that information technology has empowered customers and businesses with information needed to make better investment decisions. At the same time, technology is allowing banks to offer new products, operate more efficiently, raise productivity, expand geographically and compete globally. Electronic banking is making rapid strides due to evolving communication technology. Penetration of internet banking is increasing in most countries. The presence of ‘virtual banks’ or ‘internet banks’ and the licensing requirements required for such entities are also areas which are being looked into by overseas authorities. There has also been co-operation among the regulators and supervisors to meet the challenges of ‘virtual’ cross border-banking, particularly in the light of the possibility of increased money laundering activities through the medium of internet. Internet banking is universally seen as a welcome development, and efforts are being made to put in place systems to manage and control the risks involved without restricting this service. E-Banking is slowly gaining acceptance in Indian Scenario and efforts are being made by government agencies to make it more popular among consumers. Bill Gate’s now famous statement that “people need banking, not banks”.

References 1. https://figshare.com/articles/online_banking_in_india_advantages_amp_disadvantages/125 6081 2. https://www.ibef.org/industry/banking-india.aspx 3. https://www.google.co.in/search?q=current+scenario+of+e+banking+in+india+2018https: //www.rbi.org.in/scripts/publicationreportdetails.aspx?urlpage=&id=243 4. http://www.livemint.com/opinion/7gnlnq8ttfdbyru5e9ku1i/future-of-banking-in-todays- digital-world.html 5. //economictimes.indiatimes.com/articleshow/60915736.cms?utm_source=contentofinterest &utm_medium=text&utm_campaign=cppst 6. https://www.ukessays.com/essays/information-technology/examining-the-major-functions- of-online-banking-information-technology-essay.php 7. https://toughnickel.com/personal-finance/advantages-and-disadvantages-of-internet- banking 8. “E-banking in India: challenges and opportunities”, edited by r.k. uppal and rimpijatana, new century publications, New Delhi, India. 9. https://www.linkedin.com/pulse/20140703184235-68832259-beating-the-drawbacks-of- online-banking 10. https://www.gobankingrates.com/banking/6-banking-technologies-youll-see-next-5-years/

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PROBLEMS OF GST ON RURAL MARKETING IN VILLUPURAM

Dr. R. Anandaraman Assistant Professor, PG and Research Department of Commerce Dr. R. K. Shanmugam College of Arts and Science, Indili, Kallakurichi Villupuram District, Tamil Nadu

Abstract Good and Services Tax is one of the direct tax levied collected by government of India. Every citizens, industry and corporate sector including trade of business activity are taxes imposed on goods as they gross inland and foreign countries. GST is considered as a tax on commodity exchange for the purpose of transaction. Almost all the people are burden compulsory excise duty lies on the customer in proportion to the consumption of goods. GST are mostly progressive the tax revenue increasing earning more income usually have to pay heavy tax than those with limited incomes. In current scenario GST is hindrance of business people not promote financial growth of our Indian economy. Indian business model is entirely backward of deflation trends is impact on GST collected tax all people. Keywords: Goods, Tax, Government, Services, Revenue

Introduction GST is formal tax framed revenue department raising their income collection of minimum percentage amount paying tax to government. It is goods and services supply of marketing product in national and rural level people compulsory pay the consumed services charges. Recently government of India declared every person and business man earning more income based on GST. Business man have faced number of impacts on goods and services due to pay manufacturing, transportation, selling cost are heavy expenditure for services charge. Corporate sector earning more profit and number of services charged certain value of money collection from Government. Now day’s rural entrepreneurs GST is impact on promote the sales promotion not increasing for primary impact on number of services charges to distribution of goods in rural marketing. Professional employees is tax planning have invested in banking, insurance, mutual funds, share market, real estate etc. They have earning maximum value of money on monthly annual income their individuals based on pay surcharge tax. GST is important role to reduce block marketing services charge collection of product prices wise to holding certain percentage of amount paying tax. In this regards business man and middle class people highly suffered on Good and services tax problems of consumer and traders.

Statement of the Problems GST is compulsory taxation pay to government between producer and consumer oriented business taxation is necessary money rising by government. Now days every business man have burden of business tariff exchange of goods and services pay the economic activities oriented taxation. Government of India reviewed every individual and corporate sector for exchange of goods and services pay the taxation on GST. Business enterprises have faced many barriers sale of their own goods export and import marketing in India and outside country. GST are generally not shifted are pay the lump sum amount for one years. Wholesale and retail business people customers are opposed with potential sometimes they are painful of business to the pay tax

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Objectives of the Study The main objectives of the study as follows  To determine the GST promote the revenue income collected by government of India.  To measure services marketing mix of goods and services between customers and producers.  To ascertain economy revolution of hindrance in GST among business activities of our Indian economy.  To understand more revenue income pay general and commercial tax under income tax authorities of India.  To analysis the impact of GST in modern business of export and import exchange of goods and services in Indian business model.

Research Methodology The present study is descriptive in nature using both primary data and secondary data. Primary data were collected through interview schedule from the respondents in the study area. Secondary data were collected from various journals, magazines, newspaper related website and records of etc. The collected primary data were analyzed by using appropriate Statistical tools like Simple percentage and chi -square test. The study is based on simple random sampling technique. The researcher has collected the primary data through survey fact investigation both rural marketing of the respondents in the study areas. Kallakurichi can be divided into selected four villages each village 30 respondents from rural were selected on the basis of convenience sampling techniques. Hence, the total sample size is restricted to 120 respondents for the study. Table 1 Function of Proprietors Sources: Primary Data Function Respondents Percentage Size of Entrepreneurs Small 71 59.17 Medium 30 25 Large 19 15.83 Total 120 100 Proprietors Sole traders 66 55 Partnership 54 45 Total 120 100 Mode of Business Wholesale 84 70 Retail 36 30 Total 120 100

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Purchase System Small Portion 67 55.83 It is referred that 59.17 Bulk 53 44.17 percent of the respondents are Total 120 100 Payment Credit 44 36.67 small entrepreneurs, 25 percent Cash 62 51.67 of the respondents are operating Agreement 14 11.67 medium size of entrepreneurs Total 120 100 and remaining 15.83 percent of Problems of GST Equity of Income 22 18.33 Convenience of GST 17 14.17 the respondents are large size of Possibility of direct tax 25 20.83 firm. Out of 120 respondents 55 Reduction in inequalities 30 25 percent of the respondents are Consciousness of Direct taxes 26 21.67 sole traders and 45 percent of Total 120 100 the respondents are partnership. Overall concludes that 25 percent of the respondents have problems of reduction in inequalities, 21.67 percent of the respondents have faced consciousness of direct taxes, 18.33 percent of the respondents have suffered equity of income and 14.17 percent of the respondents have impact of convenience of GST

Table 2 Impacts of GST in Rural Marketing Impacts on GST Respondents % Chi-Square Test Unpopular of GST 15 12.5 Chi-Square Value Possibility of Evasion 21 17.5 28.723 Inconveniencies of Income and Expenditure 35 29.17 DF: 2 Table Value Capacity of Arbitrariness 38 31.67 at1%32.312 Complexity of direct tax laws 11 9.17 Not Significant Total 120 100 Disadvantages of GST De Promotion of 14 11.67 Chi-Square Sales Value29.723 Uncertainty Risks of GST 17 14.67 DF: 1 Table Value Collection of heavy services cost 31 25.83 at1% 24.812 Discourage of income and investment 19 15.83 Significant Burden of services tax 41 34.17 Incidence of tax payers 12 10 Total 120 100 Nature of Tax Export and import of 31 25.83 Chi-Square household product Value36.723 Taxes pay on capital value of assets 25 20.83 DF: 3 Table Value Corporate tax 18 15 at1%39.335 Property of agricultural land 22 18.33 Not Significant Sale of consignment goods 24 20 Total 120 100 Rural Marketing Inconvenience sales and 19 15.83 Chi-Square purchase of goods Value11.263 Complexity of GST 15 12.5 DF: 3 Table Value Compulsory pay GST in all group of people 10 8.33 at1%14.223 Small size of firm pay high cost of Tax 18 15 Not Significant Inequality income and expenditure 21 17.5 Rural proprietors have not sufficient 24 20 knowledge about GST Complexity of Revenue 13 10.83 Total 120 100 Sources: Primary Data

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The calculated chi square value is (28.732) lower than the table value (32.312) at 1 per cent level of significance. Therefore, there is no significant relationship among function of proprietors with the impact of GST in rural marketing. Hence the null hypothesis (H1) is accepted. It is calculated chi square value is (29.723) greater than the table value (24.812) at 1 per cent level of significance. Therefore, there is significant relationship among function of proprietors with the disadvantages of GST in rural marketing. Hence the null hypothesis (H0) is rejected. It is calculated chi square value is (36.723) greater than the table value (39.335) at 1 per cent level of significance. Therefore, there is no significant relationship among function of proprietors with nature of tax in rural marketing. Hence the null hypothesis (H1) is accepted. The calculated chi square value is (11.263) lower than the table value (14.223) at 1 per cent level of significance. Therefore, there is no significant relationship among function of proprietors with rural marketing. Hence the null hypothesis (H1) is accepted.

Table 3 Problems of GST in Rural Marketing Problems VHL HL NO LL LL Total 21 35 19 27 18 120 Rural proprietors have earning low income 17.5 29.17 5.83 22.5 15 100 29 41 13 21 16 120 Rural traders compulsory pay GST 24.17 34.17 10.83 17.5 13.33 100 44 33 20 15 8 120 Rural entrepreneurs have no awareness of GST 36.67 27.5 16.67 12.5 6.67 100 27 29 31 19 14 120 GST are Purchases and Sales tax 22.5 24.17 25.83 15.83 11.6 100 36 28 20 12 24 120 Rural marketing maintain heavy expenditure 30 23.33 16.67 10 20 100 27 19 30 25 19 120 No opportunities of export and import marketing 22.5 15.83 25 20.83 15.83 100 22 39 21 12 26 120 Disqualify of Goods and services in marketing 18.33 32.5 17.5 10 21.67 100 30 21 17 15 37 120 Insufficient of resources of capital 25 17.5 14.67 12.5 30.83 100 18 33 22 29 18 120 Government raising more income on GST 15 27.5 18.33 24.17 15 100 39 23 19 17 22 120 Unfortunately change the Indian tax system 32.5 19.17 15.83 14.67 18.33 100 Sources: Primary Data Note: VHL- Very High Level, HL- High level, No-No opinion, LL-least level, LL-Low Level It is exhibits that 29.17 percent of the respondents have said that rural proprietors have earning low income is high level, 34.17 percent of the respondents have opinion that rural traders compulsory pay GST is high level, 36.67 percent of the respondents have problems of rural entrepreneurs have no awareness of GST, 25.83 percent of the respondents have GST are purchases and Sales tax is no opinion, 30 percent of the respondents have rural marketing maintain heavy expenditure is very high level, 22.5 percent of the respondents have No opportunities of export and import marketing, is very high level,32.5 percent of the respondents have disqualify of goods and services in marketing is high level, 30.83 percent of the respondents have insufficient resources of capital is low level, 27.5 percent of the respondents have government raising more income on GST is high level, 32.5 percent of the respondents have unfortunately change the Indian tax system is very high level.

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Recommendations  Rural entrepreneurs have faced many obstacles regarding preparation of financial statement analysis and control the cost of expenditure. They have no awareness however mange the income expenditure and reduction of unnecessary expenses. GST is major impact on promote the producers and customer collected heavy tax. Government of India should come forward reduce GST for the purchase and sale of all types of goods.  Rural traders have earning low income how to pay compulsory GST is small size of the firm. They have invested minimum amount to starts run the business to pay different cost of expenditure including purchase of raw material, payment of wage and salaries etc. GST is unfortunately change the Indian tax system have suffered rural entrepreneurs. Trading association should create the awareness on good and service tax conducting marketing of sales promotion.  GST is one of the tax system pay to every citizen of India for purchase of articles and selling of any variety of manufacturing products. Goods and services tax is disqualifying of Goods and services in marketing because collected maximum percentage of tax rate. Rural entrepreneurs maintain heavy expenditure for managing of trading activities pay to GST.  Rural entrepreneurs have sufficient knowledge about GST for de-promotion of sales uncertainly changes the tax system compulsory pay GST in all groups of people. Therefore commercial tax department reduce similar ratification of selling the multi-variety of products for exchange goods in foreign countries.  GST is highly affected of tax export and import of household product transferable of various countries. GST is uncertainty of risk management recently government of India declared compulsory pay tax system of both person of buyer and seller. There is no exempted all group of people should pay for goods and services tax is necessary.

Conclusion GST is one of the commercial taxes collected money from purchase and selling related exchange of goods for cash transaction. Good and services tax is mainly considered levy of tax for all kinds of goods based on distribution purpose of taxes. Rural marketing is fundamentally weak of financial assistance not support government and non-government organization how to running of business activities. The central government recently declared GST throughout India mainly focused for commercial activities liked among customer and producers. Rural entrepreneurs have feel that earning profit is low however impossible pay of tax and number of default preparation of financial progress. Every entrepreneur has sufficient knowledge on GST collected the percentage of value added tax on each product. In this regards GST is highly affected of Indian business inflation rate and reduction of financial economic trends is weakness. Rural marketing is progress sale of consignment goods and services for exchange of financial transaction purpose of disqualify services quality dimension in marketing.

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References 1. MilandeepKour and KajalChaudhary. (2016).A Study on Impact OF GST after Its Implementation, International Journal of Innovative Studies in Sociology and Humanities, Vol.1, No:2, pp.17-25. 2. Monika Sehrawat and UpasanaDhanda. (2015).GST in India: A Key Tax Reform, International Journal of Research, Vol.3, No: 12, pp.133-141. 3. GirishGarg.(2014).Basic Concepts and Features of Good and Service Tax in India, International Journal of Scientific Research and Management,Vol.2, No: 2, pp.542-549. 4. AkankshaKhurana and Aastha Sharma.(2016). Goods And Services Tax In India - A Positive Reform For Indirect Tax System, International Journal of Advanced Research Vol. 4,No: 3, pp.500-505. 5. Lourdunathan F and Xavier P.(2016). A Study On Implementation Of Goods And Services Tax (Gst) In India: Prospectus And Challenges, Indian Journal of Applied Research, Vol. 3,No: 2, pp.626-629.

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EMPLOYEES MOTIVATION IN AN ORGANIZATION

Dr. R. Agila, M.Com., M.Phil., Ph.D., (PGDHR), Assistant Professor, PG and Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam, Tamilnadu

B. Arun M.Phil. Research Scholar, Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam, Tamilnadu

Introduction The management is the art of getting things done through other people. When other individuals work together in groups, a proper environment should be created & maintained to achieve the cherished goals of the organization. The personnel shall work up to the satisfaction & expectations of the management only when an interest in their job is created. Inspiring this interest in the minds of the workers is known as motivation.

Employees Motivation Motivation is an important factor which encourages persons to give their best performance & help in reaching enterprise goals. A strong positive motivation will enable the increased output of an employee but the negative employee motivation will reduce their performance.

Definition of an Employee Motivation According to Berelson and Steiner, “A motive is an inner state that energizes, activates, or moves & directs or channels behavior goals.” Motivation is the process of attempting to influence others to do your will through the possibility of gain or reward –Edwin B.Flippo.

Nature of Motivation Motivation is a psychological phenomena which generates within an individual. A person feels the lack of certain needs, to satisfy which he feels working more.  Motivation is an inner feeling which energizes a person to work more.  The emotion or desires of a person prompt him for doing a particular work.  There are unsatisfied needs of a person which disturb his equilibrium.  A person moves to fulfill his unsatisfied needs by conditioning his energies.  There are dormant energies in a person which are activated by channelizing them into actions.

Types of Motivation When a manager wants to get more work from his subordinates then he will have to motivate them for improving their performance. The following are the types of motivation, 1. Positive Motivation. 2. Negative Motivation.

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Positive Motivation: It is a motivation which is based on reward. The workers are offered incentives for achieving the desired goals. The incentives may be in the shape of more pay, promotion, recognition of work, etc.., The employees are offered the incentives & try to improve their performance willingly. It is also called as positive or incentive motivation. Negative Motivation: Negative or fear motivation is based on force or fear. Fear causes employees to act in a certain way. In case, they do not accordingly then they may be punished with demotions or lay-offs. The fear acts as a push mechanism. The employees do not willingly co-operate, rather they want to avoid the punishment. This type of motivation causes angry & frustration. This type of motivation generally becomes a cause of industrial unrest.

Importance of Motivation Management tries to utilize all the sources of production in all the sources of production in a best possible manner. This can be achieved only when employees co-operate in this task. Efforts should be made to motivate employees for contributing their maximum. The motivated employees are an asset to the organization. The following is the importance of motivation:  High performance.  Low employee turnover & Absenteeism.  Better Organizational image.  Better industrial relations.  Acceptability to change.  Delegation of authority.  Reinforcement.  Quality of work life.  Job rotation.

Techniques to Increase Motivation Every management tries to select certain motivational techniques which can be employed for improving performance of its employees. Motivational techniques may be classified into two categories i.e. financial & non-financial. Financial Motivators Financial motivators may be in the form of more wages, salaries, bonuses, profit-sharing, leave with pay, medical reimbursements, company paid insurance, or any of the other things that may be given to employees for performance. The economists & managers considered money and financial incentives as important motivators. Non-financial Motivators These motivation are in the nature of better status, recognition, participation, job security, etc., some of these motivators are discussed here:  Recognition: Every participation wants his work to be recognized by the superiors. When he knows that his performance is known to his boss then he will try to improve it more and more. The recognition may be in the form of word of praise, a pat on the back, a word of praise, a latter of appreciation, entry in annual confidential report, etc., The recognition may be for better output, saving the time, suggestions, improving quality of products.  Participation: It has been considered a good technique for motivation. It implies physical & involvement of people in decision making process. It satisfies ego & self-esteem of persons.

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It results in motivation & knowledge valuable for the enterprise success. Participation gives a sense of affiliation & accomplishment. It certainly acts as a motivator.  Status: It refers to a social status of a person & it satisfies egoistic needs. A management may create some status symbol in the organization. This can be done by way of giving various facilities to the persons. These may be superior furniture, personal assistant, attachments of peons, etc. To get these facilities a person will have to show a certain amount of performance. When a person achieves certain facilities then he tries to get better status by working more. In this way status needs act as motivator.  Competition: In some organizations competition is used as a motivator. Various persons are given certain objectives and everybody tries to achieve those head of others. There may be praises, appreciation letters, and financial incentives, to those who reach the goals first. The competition encourages persons to improve their performance.  Job Enrichment: It has recognized as an important motivator by various researchers. The job is made important and challenging for the workers, may be given wide latitude in deciding about their work methods. Within a framework he is given a free-hand to decide & perform the work. It brings more job satisfaction & high morale. So, it is a recognized device of motivation.

Theories of Motivation There are basically two types of theories which relate to and define the motivational process. These are the (i) Content theories, which attempt to determine & specify the drivers and needs that motivate people to work hard and, (ii) Process theories, which attempt to identify the variables that go into motivation & their relationship with each other. In the content theories the most important theories are given by, Maslow, Herzberg McGregor, Alderfer. In the process theories, we include the theories given by Vroom and Porter and Lawler. Maslow’s Need Hierarchy Theory: Maslow stated that people have five basic levels of needs which they tend to satisfy in a hierarchical fashion. He proposed that human needs can be arranged in a particular order from the lowest level need. This hierarchy is as:

Maslow’s Hierarchy of Needs Physiological Needs: These are taken at the first or starting step for motivation theory because these are the strongest needs until they are reasonably satisfied. There are the basic bodily needs comprising of hunger, thirst, shelter, clothing, air & other necessities of life. Human beings first try to acquire these basic necessities of life, only then they tend to move the second level of needs. Safety Needs: In the hierarchy of needs, the second needs are safety and security needs. Once reasonable needs are satisfied, the human beings tend to satisfy the second level of needs which are security & stability.

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Social Needs: Once the second level is satisfied, the human being strives to satisfy their social needs. Man is a social animal; he wants to belong to a social group where his emotional needs for love, affection, warmth & friendship are satisfied. Esteem Needs: Fourth, in the hierarchy of needs, is ego or self-esteem needs which are concerned with self –respect, self-confidence, recognition, appreciation, applause, prestige, power and control. Self -Actualization Needs: At the top of the hierarchy is the need for self-actualization or the need to fulfill what a person considered to be the mission in his life. After all other needs are fulfilled; a man has the desire for personal achievement. Thus, Maslow suggested the following points:  There are five levels of needs.  All these are arranged in a hierarchy.  A satisfied need is no longer a need. Once a need or certain order a need is satisfied it ceases to be a motivating factor.  Once a level of need is satisfied, the next level of need will emerge as the depressed needs seeking to be satisfied.  The physiological & security needs are finite but the needs of higher order are infinite and are likely to be dominant in persons at higher level in the organization.  Maslow suggests that various levels are interdependent & overlapping. Each higher level emerging before the lower level need has been completely satisfied. Even though a need is satisfied it will influence behavior because of interdependent & overlapping characteristics of needs.

Alderfer’s ERG Theory Clayton Alderfer reformulated Maslow’s need hierarchy theory. The ERG need theory developed by Alderfer condenses the five needs by Maslow into three needs. These three needs are: Existence Needs: It combines the needs of physiological and safety needs of Maslow’s model. These existence needs are satisfied by material incentives. It includes both basic needs and safety needs. Relatedness Needs: These need, includes Maslow’s social and esteem needs, which are derived from other people. These needs are satisfied by personal relationships & social interactions. Growth Needs: These needs are similar to Maslow’s self -actualization needs. This need involves persons making creative efforts to achieve full potential in an existing environment. Alderfer revised Maslow’s theory in other way such as: Maslow’s need theory follows hierarchy a rigid, step like progression. The ERG theory on the other hand assumes that more than one need may be operative at the same time. It is not necessary that the existence needs must be satisfied first, even though he can working for his growth needs. The ERG theory counters this by saying that when a higher level need is frustrated, the individual’s desire to increase a lower needs take place.

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Herzberg’s Motivation-Hygiene Theory Fredrick Herzberg and his associates developed the MOTIVATION HYGIENE THEORY, commonly known as the two factor theory, in the late 1950s & early 1960s. Herzberg concluded that there are two factors are 1. Hygiene factors 2.Motivational factors are described in detail as follows: Hygiene Factors: Hygiene Factors or the maintenance factor do not motivate people, they simple prevent dissatisfaction & maintain status quo. Such factors do not produce positive results but prevents negative results. According to Herzberg there are 10 maintenance or hygiene factors:  Company policy and administration.  Technical supervision.  Inter-personal relationship with supervisor.  Inter-personal relationship with peers.  Inter-personal relationship with subordinates.  Salary.  Job security.  Personal life.  Working conditions.  Status. Motivational Factors: It is intrinsic in nature & is related to the job. These factors, have positive influence on morale, satisfaction, efficiency, productivity. Herzberg concluded that 6 factors motivate the employees such as,  Achievement.  Advancement.  Possibility of growth.  Recognition.  Work itself.  Responsibility. He further concluded that today’s motivational factors are tomorrow’s hygiene factors. Because once a need is satisfied, it stops influencing the behavior. Further, one person’s hygiene may be another person’s motivator, because motivational is also influenced by the personality characteristics’ of individuals. Under process theory: Vroom’s Expectancy Theory: Victor Vroom made an important contribution to the understanding of the concept of motivation & the decision processes that people use to determine how much effort they will expend on their jobs. There are three variables in Vroom’s model given in the form of equation. Since the model is a multiplier, all the 3 variables must have high positive value to imply motivated performance choices. If any of the variables is zero, the probability of motivated performance tends to be zero. Motivation= Valence x Expectancy x Instrumentality. Porter and Lawler Model of Motivation: Lyman Porter and Edward Lawler came up with a comprehensive theory of motivation, combining the various aspects that we have so far been discussing & increasing two additional variables in their models. Though, built in Vroom’s

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Expectancy model, Porter and Lawler model is a complete way of motivation. It is based 4 basic assumption human behavior:  It is a multi variate model; individual behavior is determined by a combination of factors in the individual & in the environment.  Individuals are assumed to be rational human beings who make conscious decisions about their behavior in the organization.  Individuals have different needs, desires & goals.  On the basis of their expectations, individuals decide between alternate behaviors & such decided behavior will lead to a desired outcome.

Conclusion It can be concluded that it is surely potential to motivate employees to work well for an organization and that it is vital task for managers. It appear to be that there exist a self-rewarding circular correlation amongst the performance, satisfaction and motivation of an employee; an employee accomplish a high performance, hence inner satisfaction springs up and the employee is motivated to perform well in the future. It is said that a high performance can be attained when the organization renders certain job characteristics.

References 1. Human Resource Management, Shashi.K.Gupta, Rosy Joshi, Kalyani Publishers, Pp.13.1- 13.17. 2. Human Resource Management, Dr.V.Radha, Prasanna Publishers, Pp.187. 3. Human Resource Management, J.Jayasankar, Margham Publications, Pp.17.1.

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A STUDY ON EMPLOYEE MOTIVATION IN BRIGHT BROTHERS PVT LTD AT PUDUCHERRY

R. Kumuthavalli Revathy, MBA., Assistant Professor, Sri Manakula Vinayagar Engineering College Madagadipet, Puducherry

Introduction Motivation is an important tool that is often under-utilized by managers in today's workplace. Managers use motivation in the workplace to inspire people to work, both individually and in groups, to produce the best results for business in the most efficient and effective manner. It was once assumed that motivation had to be generated from the outside, but it is now understood that each individual has his own set of motivating forces. It is the duty of the manager to carefully identify and address these motivating forces. Although there are many types of motivation, management must identify with their associates (employees) on an individual level for successful programs. The goal of every manager is to increase production and efficiency to reach maximum results for the organization. Motivation for better performance depends on job satisfaction, achievement, recognition, and professional growth. Providing a positive motivational work environment is a challenging managerial activity. Therefore, managers must understand associates and their professional needs. When a company that treats employees like owners, even hourly clock-punchers, will make an extraordinary effort if you reward them richly, treat them with respect, and give them real power. There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it’s thirsty-so with the people. Essentially, there is a gap between an individual’s actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap. It is inducing others in a specific way towards goals specifically stated by the motivator. Naturally, these goals as also the motivation system must conform to the corporate policy of the organization. The motivational system must be tailored to the situation and to the organization.

Need for the Study The purpose of behavior is to satisfy needs. A need is anything that is required, desired, or useful. A want is a conscious recognition of a need. That arises when there is a difference in self- concept (the way I see myself) and perception (the way I see the world around me). The presence of an active need is expressed as an inner state of tension from which the individual seeks relief. Since motivation influences productivity, supervisors need to understand what motivates employees to reach peak performance. It is not an easy task to increase employee motivation because employees respond in different ways to their jobs and their organization's practices. Thus, motivated behaviors are voluntary choices controlled by the individual employee. The

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” supervisor (motivator) wants to influence the factors that motivate employees to higher levels of productivity. Factors that affect work motivation include individual differences, job characteristics, and organizational practices. Individual differences are the personal needs, values, and attitudes, interests and abilities that people bring to their jobs. Job characteristics are the aspects of the position that determine its limitations and challenges. Organizational practices are the rules, human resources policies, managerial practices, and rewards systems of an organization. Supervisors must consider how these factors interact to affect employee job performance.

Scope of the Study To be effective, managers need to understand what motivates employees within the context of the roles they perform. The important task before, every manager is to secure optimum performance from each of his subordinates. Of all the functions a manager performs, motivating employees is arguably the most complex. As employees' income increases, money becomes less of a motivator. Also, as employees get older, interesting work becomes more of a motivator. The performance of the subordinates, in turn is determined by his ability to work and the extent to which he is motivated. Motivation is the process of including and instigating the sub ordinates to put their best. Motivation is influenced significantly by the needs of a person and the extent to which these have been fulfilled. To motivate the subordinates the managers must therefore understand their needs. Apart from financial incentives, non-financial incentives also are important in motivating employees. Aspects such as job security, challenging work, and recognition better designation, opportunity for advancement participating in decision-making, competition and job rotation tend to motivate subordinates.

Statement of the Problem The research problem here in this study is associated with her of employees of Bright Brothers Pvt. Ltd at Puducherry. There are a variety of factors that can influence a person`s level of motivation soma of these factors include level of pay and benefits, the perceived fairness of promotion system of these factors include level of pay and benefits, the perceived fairness of promotion system within a company quality of the working conditions, leadership and social relationships, job security, career development opportunities etc. Motivated employees are a great asset to any organization. It is because the motivation and job satisfaction is clearly linked. Hence this study is focusing on the employee motivation in the organization. The research problem is formulated because of to find out which factors are help to motivate the employee.

Objective of the Study Primary Objective  To study the impact of the motivation among the employees. Secondary Objective  To find the employee relationship with supervisor/boss & co-workers.  To find out the working conditions of the employee in an organization  To identify what motivates people to work.  To improve the quality of motivation for the better involvement of the employees.

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Research Methodology Research Design Research design is defined, as the specification of the methods and procedures for acquiring the information needed. It is a plan or organizing framework for doing the study and collecting the data on the basis, research design may be broadly classified as Descriptive, Exploratory, and Casual studies. The researcher for this study has selected Descriptive Research Method. Descriptive Research that uses a set of scientific method and procedures to collect raw data and create data structure, that describe the existing characteristic of a defined target population formulated by the researcher with prior knowledge of the situation under study.

Sources of Data Sources of data include both secondary and primary data. Primary Data: Primary data refer to information obtained first hand by the researcher on the variables of interest for the specific purpose of the study. Primary data was collected by the method of survey by using questionnaire. Secondary Data: Secondary data are data that were collected for some other purpose and are in existence. Secondary data pertaining to this study was obtained from company’s record, websites and books.

Sampling Sampling Unit Sampling unit is that of “who is to be surveyed”. Here the survey is on survey is on employees of Nag India Private Limited, Sipcot.

Sampling Size Here the sample size is 100.

Sampling Procedure The sampling procedure that was adopted in the research was Random sampling.

Sampling Area The research was conducted in various departments of Nag India which includes Production, Stores and Finance

Type of Questions Used in Questionnaire  Open ended questions  Multiple choice questions  Ranking

Statistical tool . Percentage analysis . Weighted average . Chi-square analysis

Limitations of the Study  Researcher felt uncomfortable, because employees had been disturbed during the work hours.

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 The samples may behave or give opinions differently at different times because of their psychological temperament. This will affect the survey.  Most of the respondents’ are not interested in filling up the Questionnaire.  A few respondents might have given biased information that may affect the reliability of the result.

Review of Literature Motivation is the characteristic in an individual which make him or her to take initiatives or challenging tasks and complete the same successfully. A simple definition of motivation is the ability to change behavior. It is a drive that compels one to act because human behavior is directed toward some goal. Motivation is intrinsic (internal); it comes from within based on personal interests, desires, and need for fulfillment. However, extrinsic (external) factors such as rewards, praise, and promotions also influence motivation. Dubin has defined motivation as follows: “Motivation is the complex forces starting and keeping a person at work in an organisation. Motivation is something that moves the person to action, and continues him in the course of action already initiated”.

(Robert Dubin, Human Relations in Administration, New Delhi: Prentice-Hall of India. 1974) According to McFarland, “Motivation refers to the way in which urges, drives, desires, aspirations, strivings, or needs direct, control or explain the behavior of human beings”

(Dalton E. McFarland, Management Principles and practices, New York: Macmillan.1974) Beck (1983) expressed a similar view, and stated that motivation is concerned with explaining the variation in behaviour, such as why some people work harder than others. Work characteristics in this regard refer to specific characteristics of a person’s job, for example its task variety, whereas personal characteristics include those determined by a person’s personality, for example an intrinsic need for achievement. Van Niekerk (1987) saw work motivation as the creation of work circumstances that influence workers to perform a certain activity or task of their own free will, in order to reach the goals of the organization, and simultaneously satisfy their own needs. In the field of organization psychology, work motivation is clearly approached from several angles. As a result, a single comprehensive definition of motivation, which covers all purposes in the field, is not possible. Du Toit (1990) added that three groups of variables influence work motivation, namely individual characteristics, such as people’s own interests, values and needs, work characteristics, such as task variety and responsibility, and organizational characteristics, such as its policies, procedures and customs. The concept of motivation is therefore particularly useful in its ability to increase general understanding and prediction of behaviour. Gouws (1995) defined motivation as an inner wish or urge that originates with an individual, either consciously or unconsciously, to complete a task successfully because it is enjoyable, and not necessarily for what will be received in return. Bong (1996) generally, motivation models may be classed as belonging to one of two theoretical orientation groups – cognitive models and social-cognitive models. Cognitive models of motivation “place greater weight on understanding learners’ covert thought processes, often overlooking the impact of social and

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contextual variables” i.e. they focus on the individual characteristics at the expense of the job and work environment characteristics. A social-cognitive approach focuses on formulating and testing specific hypotheses regarding the nature and direction of influence from social and contextual variables. These different theoretical orientations often lead academic motivation researchers to different conclusions as to which potentially relevant variables to include in or exclude from their conceptualizations. Bong, in a paper highlighting the problems in academic motivation research, stated that the fact that no single model has been able to capture the full dynamics of motivated behaviours was due to “different theoretical orientations of investigators working in the field, who tend to emphasize a particular dimension of motivational phenomena over the others”. He suggests that there are two solutions to the formulation of a broader model of motivation. One possible solution for integrating numerous motivational constructs and findings is to create a general model. Young (2001) suggests that motivation can be defined in a variety of ways, depending on who you ask. Ask someone on the street, you may get a response like “it’s what drives us” or “it’s what makes us do the things we do.” Therefore motivation is the force within an individual that account for the level, direction, and persistence of effort expended at work.” It is important to note, however, that Frey uses the term external intervention. A great many definitions of the motivation construct have been postulated over the several decades during which this multi-faceted concept has been researched. Greenberg et al (2003) defines motivation as ‘the set of processes that arouse, direct, and maintain human behaviour towards attaining some goal”. Bassett-Jones &Lloyd (2005) presents those two views of human nature underlay early research into employee motivation. The first view focuses on Taylors, which viewed people as basically “lazy and work –shy” and thus held that these set of employees can only be motivated by external stimulation. Bassett-Jones & Lloyd (2005) suggests that the “content theorists led by Herzberg, assumed a more complex interaction between both internal and external factors. It explored the circumstances in which individuals respond to different internal and external stimuli.

Data Analysis and Interpretation Weighted Average Method

Respondents Opinion about the Recognition

Inference

- From the above data, it is

S.No Factors

Un

Most Most

Rank

More More Least Least

Score clear that the respondents

Important Important Important Important Important Weightage think job promotion as the 1 Money 65 10 9 5 11 417 II major attribute as an 2 Public praise/Thanks 25 32 3 22 18 354 III accomplishment of their 3 Job promotion 52 26 2 8 12 418 I work with Weightage score 4 Plaque/certificate 23 25 24 18 10 305 IV of 418 points. The second rank was given to money with score of 417 points. Public praise/thanks were the third attribute with score of 339 points while plaque/certificate was given four ranks with the Weightage score of 305 points.

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Respondents Opinion about the Factors that Influence the Work

Inference

From the above data, it is

S.No Factors clear that the respondents

Poor

Rank

Good Score

Excellent think organization bonus as

Very good Weightage the major attribute that 1 Medical claims 57 30 5 0 428 II influence the work with 2 Organization Bonus 62 22 10 0 434 I Weightage score of 440 3 Promotional opportunities 39 10 12 10 310 III points. The second rank was given to medical claims with score of 436 points. Promotional opportunities were the third attribute with score of 339 points.

Chi-Square Analysis To Find the Relationship between the Work Environment and Motivation of the Respondents

Work Environment Null Hypothesis (H0): No

significant relationship between the

Motivation of the Works Total

Respondents Environment and the motivation of

Highly satisfied

Satisfied the respondents Dissatisfied Alternative Hypothesis (H1): Timings 11 9 7 27 Significant relationship between the Interpersonal 18 7 1 26 Relationship Works Communication 12 5 2 19 Environment and motivation of Freedom in completion of job 16 8 4 28 the respondents Total 57 29 14 100

Observed Expected F Chi-square Test (O-E)² (O-E)²/E Frequency (O) requency (E) Calculated 2 value = 7.15 11 15.39 19.272 1.252 9 7.83 1.369 0.175 Degree of freedom = 6 7 3.78 10.368 2.743 Table value = 12.592 18 14.82 10.112 0.682 Significant level = Significant at 5% level 7 7.54 0.292 0.038 1 3.64 6.970 1.914 Inference 12 10.83 1.369 0.126 5 5.51 0.260 0.047 From the above analysis, we find that, 2 2.66 0.436 0.164 calculated value lesser than the table value, 16 15.96 0.002 0.0001 i.e., null hypothesis is accepted. So, there is 8 8.12 0.014 0.002 4 3.92 0.006 0.002 No significant relationship between the work Total 7.15 environment and the motivation of the respondents.

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To Find the Relationship between the Age of the Respondents and their Important Element in a Job

Respondents Important Null Hypothesis (H0) : No significant relationship Element in a job

between the age of the Respondents and their

important element in a job

Alternative Hypothesis (H1) : Significant

Age of Age the of Total

Work Work relationship between the age of the Respondents and

among among

Respondents

Sense of of Sense

coworkers

atmosphere

challenging challenging

environment membership membership

Intellectually Intellectually their important element in a job Compensation

20-30 19 5 28 16 68 31-40 6 5 3 1 15 41 above 3 5 4 5 17 Total 28 15 35 22 100

Observed Expected (O-E)2 (O-E)2/E Chi-square Test Frequency (O) Frequency (E) Calculated 2 value = 14.23 19 19.04 0.0016 0.00008 5 10.20 27.04 2.6509 Degree of freedom = 6 28 23.80 17.64 0.7411 Table value = 12.592 16 14.96 1.082 0.0722 Significant level = Significant at 5% level 6 4.20 3.240 0.7714

5 2.25 7.563 3.3611 Inference 3 5.25 5.063 0.9642 1 3.30 5.290 1.6030 From the above analysis, we find that, 3 4.76 3.098 0.6507 calculated value greater than the table 5 2.55 6.003 2.3539 value, i.e., null hypothesis is rejected. So, 4 5.95 3.803 0.6390 5 3.74 1.588 0.4245 there is Significant relationship between the Total 14.23 age of the Respondents and their important element in a job

Findings  It is found from the analysis that maximum (82.0%) of respondents are male.  It is found that maximum (68.0%) of the respondents were 20-30 years old ,15.0% of the respondents were 31-40 years old, and 17.0% of the respondents were 41 years and above old .  It is found that maximum (36.0%) of respondents have 0-3 yrs of total work experience and (29.0%) of the respondents have 4-7 yrs of work experience.  It is found that maximum (40.0%) of respondents have 0-3 yrs of work experience for the current employer and (30.0%) of the respondents have 12 & above yrs of work experience.  Majority (70.0%) of the respondents agreed that they would like to choose the job that pays the most.  Majority (34.0%) of the respondents disagreed that at work their favorite day is pay day.  Majority (55%) of the respondents agreed that they should keep their eyes and ears open for better opportunities.  Majority of the respondents (55%) agreed that others should approve their behavior.  Majority (50%) of the respondents agreed that they often make decisions based on what others will think.

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 Majority (34%) of the respondents agreed that they choose jobs that will be recognized for success.  Majority (54%) of the respondents strongly agreed that they work for a company that allows using the skills and talent.  Majority (51%) of the respondents strongly agreed motivation helps organisation to achieve goals.  Majority (68%) of the respondents agreed that they are self motivated personnel.  Majority (70%) of the respondents agreed that they would like to do things which give a sense of personal achievement.  Majority (55%) of the respondents strongly agreed that there is a need to know that their skills and values are impacting organization’s success.  Majority (69%) of the respondents agreed that they choose for an organisation that supports the beliefs and values.  Majority (34%) of the respondents agreed that motivation helps to improve the productivity of the organization and obtain its objectives.  Majority (35%) of the respondents feel that the important element they would look for a job is to have a sense of membership among the coworkers.  Majority (51%) of the respondents feel that they have a cordial relationship with the present supervisor/boss.  Majority (80%) of the respondents feel that they have a friendly relationship with the present coworkers.  Majority (64%) of the respondents feel that they are happy to be a member of the present employee.  Majority (57%) of the respondents feel that they are highly satisfied with the work environment.  Majority (68%) of the respondents feel that they can climb the ladder of success.  Majority (75%) of the respondents feel that both designation and salary are important to them.  Majority of the respondents feel that job promotion to be the recognition for an accomplishment of work.  Majority of the respondents feel the organisation bonus is the factor that influences the work performance.  It is known that there is no significant relationship between the work environment and the motivation of the respondents.  It is known that there is significant relationship between the age of the respondents and their important element in job.

Suggesstion The following are the Suggestion brought out by the researcher from the study. Non financial incentives can be increased to the workers that will help employees retain in the organization, as it is the motivating factor to the employees. Employees need to have an opportunity to discuss and comment on changes that affect them at and in work.

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Performance must always be linked to the rewards so that employees know there is a firm link between the two. The management should encourage individuals and reward their personal contribution and achievements by such things as:  Employee of the month  Individual bonuses  Long service award  Special service awards  An active promotion from within scheme. Involve the subordinates in as many work decisions as possible

Conclusion Motivation is the characteristic in an individual which make him or her to take initiatives or challenging tasks and complete the same successfully. Motivation is the work that a manager performs to inspire, encourage and impel people to accomplish desired goals. Properly motivated employees can produce excellent results by putting facilities to good use. In order to motivate employees, managers have to recognize individual differences, match people to jobs, link rewards to performance and see that rewards match the efforts put in by employees. Motivation is the driving force with in individuals that impels them to action. This driving forces produced by the state of uncomfortable tension, which exist as the result of an unsatisfied need. The individual ‘s subconscious drive to reduce need-induced tension results in behavior that he/she anticipates will satisfy needs and thus bring about a more comfortable internal state. The study helps the researcher conclude the motivation level of workers at to be satisfactory. The failure to achieve a goal often results in feeling of frustration. Individuals react to frustration in two ways fight or flight .They may cope by finding a way around the obstacle that prohibits goal attainment or by adopting a substitute goal (fight); or they may adopt a defense mechanism that enables them to protect their self esteem (flight). Therefore it is essential for organization to take care of the employees so that frustration does not set in the workers.

References 1. Aaker, D. A. (1991). Managing Brand Equity: Captialising on the Value of a Brand Name, New York: The Free Press. Anderson, P.F. (1982). “Marketing, Strategic Planning and the Theory of the Firm,” Journal of Marketing, vol. 46: Spring, pp. 15-26. 2. Blair, E. A. and London, L. (1981). “The Effects of Preference Price in Retail Advertisements, “Journal of Marketing, vol. 45:2, pp. 83-93. 3. Blattberg, R. and Golanty, J. (1978)“Tracker: An Early Test Market Forecasting and Diagnostic Model for New Product Planning, “Journal of Marketing Research, vol. 15:2, pp. 192-202.4 4. Blattberg, R. C. and Neslin, S. A. (1990). Sales Promotion, Concepts, Methods, and Strategies. 5. Englewood Cliffs, NJ: Prentice Hall. Dodson, J. A., Tybout, A. M. and Sternthal, B. (1978) “Impact of Deals and Deal Retraction on Brand Switching, “Journal of Marketing Research, vol. 15:1, pp. 72-78. 6. Doyle and Saunders, (1985) “The Lead Effect of Marketing Decisions,” Journal of Marketing Research, vol. 22, pp. 54-65. 7. Foekens, E. W., Leeflang, P. S. and Wittink, D. R. (1999). “Varying Parameter Models to Accommodate Dynamic Promotion Effects,” Journal of Econometrics, vol. 89, pp. 249-268.

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8. Frederick, E. (1981). “Top Management’s Concerns about Marketing: Issues for the 1980’s,”Journal of Marketing, vol. 45:3, pp. 83-93. Frederick, E. and Wind, Y. (1972). “A General Model for understanding Organizational Buying Behavior, “Journal of Marketing, vol. 36:2, pp. 83-93. 9. Ghosh, A., Neslin, S. and Shoemaker, R. (1984). “A Comparison of Market Share Models and Estimation Procedures, “Journal of Marketing Research, vol. 21:2, pp. 202-210. 10. Guadagni, P. and Little, J. (1983) “A Logit Model of Brand Choice Sales promotion on Scanner Data,” Marketing Science, vol. 2:3, pp.203-238. Gupira, S. (1988). “Impact of Sales promotions on When, What, and How Much to Buy, “Journal of Marketing Research, vol. 25:4, pp. 342-55. 11. Huff, L. C., and Alden, D. L.(1998)“ An Investigation of Consumer Response to Sales 12. Promotions in Developing Markets: A Three-Country Analysis, “Journal of Advertising Research, vol. 38:3, pp. 47-54. 13. Kilter, P. (1990). Marketing Management: Analysis, Planning and Control. Englewood Cliffs, NJ: Prentice Hall. Kilter, P. (1994). The Potential Contributions of Marketing thinking to Economic Development Englewood Cliffs, NJ: Prentice Hall.

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FOOD PROBLEMS AND FOODGRAIN PRODUCTION POLICIES IN INDIA

Dr. T. Sivakumar Assistant Professor, Department of Commerce D.B. Jain College, Thoraipakkam, Chennai

Abstract This article highlighted the food problems and foodgrain production policies in India. Agriculture is not helps to the growth of country’s economy but also vital one in various other points. In India, nearly 61 % of Indian population is doing agriculture and its allied activities. India has enough suitable lands and methods which is supporting to high cultivation of agricultural products. With the help of the green revolution India compete global market which shows high export of agriculture products in various countries. Due to favorable support of agriculture policy, India became stable in the export of agriculture product. Agriculture sector is very important for the economic growth and development and also because it provides foodgrains to its population, employment, also important factor for industrial development. World countries face food problems especially developing and under developed countries. India also faces food problems even we produce large amount of food grains. Keywords: Foodgrains, Food problem, Public Distribution System (PDS), Food Corporation of India, Cereals, Pulses

Introduction Food is essential for each and every of human beings. It helps the human beings in their physiological development and achieves creative and curious characters. Throughout the long history of man, different items have been adopted as food. Food has a long history of evolution. Man in the old stone-age ate fruits and roots of certain plants. The cave man’s food consisted primarily of red meat and wild fruits. Gradually, there has been quest for a variety of food items. After man learnt the art of ploughing the land with domesticated animals, grain production gained significance. Now grain has become the world's chief food. The most important cereals now used as food in different parts of the world are wheat, rice, jowar, etc. Of them rice and wheat are the most popular foodgrains in India, Rice is said to be the oldest foodgrain, originated for the first time, in India and China around 1800 B.C. Food is simultaneously an economic commodity and a biological necessity.

Food Problem Food problem is one of the serious problems in the world. Food becomes a problem when it is not available in required quantities at reasonable prices at all times and in all places. It is a situation where the foodgrains may be scarce in relation to demand or they may be available at high prices. The World Bank Report of 1986 has identified two forms of food problem viz., transitory and chronic. Transitory food problem, a temporary decline in a household's access to food, results from unstable food prices, food production, or incomes. Its worst form is seen in famines. Chronic food insecurity affects households that persistently lack ability to buy enough of their own. Food problem, anywhere, has two factors of genesis. One is the supply factor and the other is the demand factory. Supply side the food problem refers to the insufficient production of food relation to the demand for food. The food production in the world, except in few countries, has never been sufficient to meet the fast growing demand of the people.

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Food Problem in India - A Historical Review Food shortage is a recurring phenomenon which periodically bedevils Indian economy. Too long have watched the three year cycle of food shortage followed by a year of bumper crops, A little reflection would suggest that the causes of the malaise are many and deep 10 seated. The food problem in India is not for a year or two, but has been with us since a long time; India faced several food scarcity years and suffered from severe famines. It is observed that a major famine occurred once in every fifty years. During the last 150 years, India had experienced some 26 major famines. Out of the 34 great famines of the world, 18 have occurred in India, The frequency and cyclical order of famines showed the peculiar susceptibility of this country to crop failures and recurrent shortages of food supply. Though famines from time to time created food problem, in India, they were not national concerns.

Nature of Food Problem in India India suffers not only from physical hunger, but also from specific hunger. It is to be noted that there is not only inadequate diet, but also deficiency of one or more essential nutrients in the diet. Thus under-nourishment and malnourishments are the two aspects of Indian food problem. The people who are not able to get enough quantity of food are under-nourished and those whose diets are deficient are malnourished. In India the food problem is serious in both the aspects. On an all India basis, about 40 per cent of the population is undernourished. As 2100 to 2400 calories of food a day is required for health and active life, majority of the Indians subsist on around 1000 calories a day. The incidence of malnutrition is more than undernutrition. Nearly 50 per cent of the population is malnourished. According to Dr. P.V. Sukhatme around two thirds of mankind in the world suffers from malnutrition and the proportion of people in India who do not get enough of right type of food to eat is even higher than two thirds. He, further, observes that permanent underfeeding and periodic starvation is a rule in India. In normal times about 30 per cent of the population do not get enough to eat, while much larger section of the people have to be satisfied almost invariably with ill-balanced diet containing preponderously cereals, sugar, root vegetables and insufficient protective foods of higher nutritive values. The nature of the present day food problem in India is mostly lack of effective demand among majority people to buy required food.

Objectives of National Food Policy  Efficient growth in food and agriculture sector.  Acquisition of sufficient stocks of food grains to meet the eventualities.  Improved storage, transportation, and distribution.  Satisfactory nutritional status for the entire population.  To carry out the basic food policy which includes the protection of producer as well as consumer against the falling as well as rising prices

Agricultural Production – Foodgrains The following table explained that the agricultural production of foodgrains in India which is from 1996-97 to 2015-16. Foodgrains can be classified into two broad categories like cereals and pulses. Cereals include Rice, Wheat and coarse cereals.

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Table 1 Agricultural Production – Foodgrains (Million Tonnes) Source: RBI Reports 2015-16 Cereals It is clear from the table that the Year Pulses Rice Wheat Coarse Cereals rice production shows 81.73 tonnes in 1996-97 81.73 69.35 34.11 14.24 the year 1996-97 and 104.32 million tonnes in the year 2015-16. Rice 1997-98 82.54 66.35 30.4 13.83 production is steadily increased from 1998-99- 86.08 71.29 31.33 14.91 the beginning year of the study period 1999-00 89.68 76.37 30.34 13.41 to end of the period. In the year 2013- 2000-01 84.98 69.68 31.08 11.07 14 highest rice production shows 2001-02 93.34 72.77 33.37 13.37 106.65 million tonnes. Wheat 2002-03 71.82 65.76 26.07 11.13 production also shows increased 2003-04 88.53 72.16 37.6 14.91 position from 1996-97 to 2015-16. In 2004-05 83.13 68.64 33.46 13.13 the year 2013-14 highest wheat 2005-06 91.79 69.35 34.07 13.38 production states that 95.85 million 2006-07 93.36 75.81 33.92 14.2 tonnes. In the year 2013-14 coarse cereals production explains that 43.29 2007-08 96.69 78.57 40.75 14.76 million tonnes which is highest one 2008-09 99.18 80.68 40.04 14.57 among the study period. Pulses 2009-10 89.09 80.8 33.55 14.66 production also constantly increased 2010-11 95.98 86.87 43.4 18.24 except few years illustrate that 19.25 2011-12 105.3 94.88 42.01 17.09 million tonnes in the year 2013-14 2012-13 105.24 93.51 40.04 18.34 which is the highest production. It is 2013-14 106.65 95.85 43.29 19.25 concluded that in the year 2013-14 2014-15 105.48 86.53 42.86 17.15 foodgrains production shows highest 2015-16 104.32 93.5 37.94 16.47 position.

300

250 Series5 200 Series4 150 Series3 100 Series2 50 Series1

0 1 3 5 7 9 11 13 15 17 19 21 23

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Area Under Cultivation – Foodgrains (Million Hectares) The below table explains that the area under cultivation of foodgrains in India. Table 2 Area under Cultivation – Foodgrains (Million Hectares) Source: RBI Reports 2015-16 Cereals From the above table explains that Year Pulses Rice Wheat Coarse Cereals the area under cultivation of foodgrains 1996-97 43.43 25.89 31.81 22.45 in India. In the year 1996-97 onwards Cereals cultivation is constantly 1997-98 43.45 26.7 30.83 22.87 increased till 2015-16. Likewise, pulses 1998-99- 44.8 27.52 29.34 23.5 cultivation also increased from the 1999-00 45.16 27.49 29.34 21.12 beginning of the year to end of the 2000-01 44.71 25.73 30.26 20.35 year. In the year 2015-16 cultivation of 2001-02 44.9 26.34 29.52 22.01 rice, wheat and coarse cereals shows 2002-03 41.18 25.2 26.99 20.5 43.39, 30.23 and 23.78 million hectares 2003-04 42.59 26.6 30.8 23.46 respectively. Pulses cultivation shows 2004-05 41.91 26.38 29.03 22.76 25.26 million hectares in the year 2015- 2005-06 43.66 26.48 29.06 22.39 16. It is concluded that Indian formers 2006-07 43.81 27.99 28.71 23.91 should concentrate on enhance to cultivate cereals and pulses. 2007-08 43.91 28.04 28.48 23.63

2008-09 45.54 27.75 27.45 22.09

2009-10 41.92 28.46 27.68 23.28

2010-11 42.86 29.07 28.34 26.4 2011-12 44.01 29.86 26.42 24.46 2012-13 42.75 30 24.76 23.26 2013-14 43.95 31.19 25.67 25.23 2014-15 43.86 30.97 24.15 23.1 2015-16 43.39 30.23 23.78 25.26

Chart 2 Area under Cultivation – Foodgrains (Million Hectares)

140 120 AREA UNDER 100 CULTIVATION – 80 FOODGRAINS (Million 60 Hecters) pulses 40 AREA UNDER 20 CULTIVATION – FOODGRAINS (Million

0

Hecters) cereals

98 00 02 04 06 08 10 12 14 16

------

1997 1999 2001 2003 2005 2007 2009 2011 2013 2015

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Foodgrain Crops Cultivated in Tamilnadu (Thousand Tones) Cultivation of Foodgrains by Tamilnadu contributes very important position as compared to other states of India. Likewise, it plays vital role in the cultivation of foodgrains crops also. Not only, cultivate of cereals and pulses but also oil seeds, cotton and sugarcane.

Table 3 Foodgrain Crops Cultivated in Tamilnadu (Thousand Tones)

Year Rice Coarse Cereals Pulses Food Grains Oil Seeds Cotton Sugar Cane

1996-97 1903.8 891.9 232.8 3028.5 461.8 329.9 25918.8 1997-98 6893.7 965.8 244.2 8103.7 1474.2 358 30183.6 1998-99 8141.4 973 304.3 9418.7 1642 406.3 33764.8 1999-00 7532.1 1065.9 370.8 8968.8 1476.4 339.5 34285 2000-01 7366.3 937.8 312.7 8616.8 1441.7 316.6 33188 2001-02 6584 834 313.9 7731.9 1313 326.1 32620 2002-03 3577.1 682.8 182.2 4442.1 760 83.5 24165.4 2003-04 3222.8 983 200.8 4406.6 963.6 122.7 17656 2004-05 5062.2 868 245.6 6175.8 1061.1 194.8 23396 2005-06 5220 730.2 177 6127.2 1152.9 213.3 35106.5 2006-07 6610.6 1361.9 290.5 8263 1083.5 220.9 41124 2007-08 5040.2 1357.1 185 6582.3 1146.7 200.7 38071 2008-09 5182.7 1755.1 164.5 7102.3 1043 187.7 32804.4 2009-10 5665.2 1642 204.1 7511.4 939.6 225 29745.6 2010-11 5792.4 1556.5 246 7594.9 933.1 450 34251.8 2011-12 7458.7 2323.8 369.3 10151.8 1113.7 450 38575.7 2012-13 4049.9 1333 209.9 5592.8 816.9 500 33919.2 2013-14 5349.8 2819.7 613.8 8783.2 964.2 408 32454.1 2014-15 5839 2974 647.2 9460.2 961.1 786 24462.8 2015-16 7982.6 3385.7 573.2 11941.4 919.1 369 26497.4 Source: RBI Reports 2015-16 Chart 3 Foodgrain Crops of Tamilnadu (Thousand Tones)

70000 60000 sugar cane 50000 cotton 40000 oil seeds 30000 food grains 20000 10000 pulses 0 coarse cereals rice

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Yield Per Hectare – Foodgrains (Yield/Hectare) The below table illustrates that yield per hectare of foodgrains from 1996-97 to 2015-16. Yield per hectare of foodgrains cultivation is satisfactory as compared to the previous year from beginning to end of the year.

Table 4 Yield Per Hectare – Foodgrains (Yield/Hectare) Cereals Pulses Year Rice Wheat Coarse Cereals 1996-97 1882 2679 1072 635 1997-98 1900 2485 986 567 1998-99- 1921 2590 1068 634 1999-00 1986 2778 1034 635 2000-01 1901 2708 1027 544 2001-02 2079 2762 1131 607 2002-03 1744 2610 966 543 2003-04 2077 2713 1221 635 2004-05 1984 2602 1153 577 2005-06 2102 2619 1172 598 2006-07 2131 2708 1182 612 2007-08 2202 2802 1431 625 2008-09 2178 2907 1459 659 2009-10 2125 2839 1212 630 2010-11 2239 2988 1531 691 2011-12 2393 3177 1590 699 2012-13 2461 3117 1617 789 2013-14 2424 3075 1677 764 2014-15 2390 2872 1729 744 2015-16 2404 3093 1596 652 Source: RBI Reports 2015-16

Chart 4 Yield Per Hectare – Foodgrains (Yield/Hectare)

3500 3000 YIED PER HECTEARE - 2500 FOOD GRAIN cereals 2000 YIED PER HECTEARE - 1500 FOOD GRAIN cereals 1000 YIED PER HECTEARE - 500 FOOD GRAIN cereals

0

(Yield / Hecteare)

04 98 00 02 06 08 10 12 14 16

------

- pulses

2003 1997 1999 2001 2005 2007 2009 2011 2013 2015

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Conclusion This article concluded that the supply of food falls short of demand due to various reasons like failure or scanty rainfall, droughts, floods, hailstorm etc., which affect the production of food. The production in agriculture is also limited due to various institutional and technical problems. On the other hand demand for food increases due to increase in population, incomes, and speculative motives of the people as well as traders. In the event of inequality between supply and demand, situations like hoarding, smuggling and black marketing crop up. During period of war and other emergencies, private traders create artificial scarcity and charge abnormally high prices for the goods, especially essential goods like rice, wheat, oils, sugar etc. In situations like crop failures and subsequent scarcity, the conditions of the common man deteriorate from bad to worse. According to the world Development Report of 1982, while economic development is the ultimate remedy for poverty, human development offers the prospect of improving the percapita living standards faster. Human development, inturn, is dependent on several factors, the chief of which is nutrition and sufficient food. Hence, food in sufficient quantity is the chief requirement for the all round development of human beings.

References 1. Bansal, P.C (2002). “Economic Problems of Indian Agriculture.” CBS Publishers Distributors, New Delhi 2. Reddy S.N and Mishra S., (2009), “Agrarian Crisis in India” Oxford University Press, New Delhi 3. Vaidyanathan. A., (2010), “Agricultural Growth in India: Role of Technology, Incentives and Institutions” (Oxford University Press, New Delhi 4. Balasubramanyam, V. N. (2003). „India: Trade Policy Review‟. The World Economy, 26(9): 1357–68. 5. Darity, W. Jr., and L.S. Davis.2005 “Growth, Trade and Uneven Development.” Cambridge Journal of Economics 29(1): 141–70. 6. Economic Survey of India; Various Issues 7. Reserve Bank of India-2016 - Handbook of statistics on Indian economy 8. Ministry of Commerce (www.commerce.nic.in) 9. RBI (www.rbi.org.in) 10. WTO (www.wto.org)

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INVESTMENT BEHAVIOUR OF RETAIL INVESTORS: A STUDY WITH SPECIAL REFERENCE TO MUTUAL FUNDS IN PUDUCHERRY

S. Jegan M.Phil. Scholar, PG & Research Department of Commerce Arignar Anna Government Arts College, Villupuram

Abstract The mutual fund industry started in India in a small way with the UTI Act creating what was effectively a small savings division within the RBI. Over a period of 25 years this grew fairly successful and gave investors a goods return. In 1989 as the next logical step, public sector banks and financial institutions were allowed to float mutual funds and their success emboldened the government to allow the private sector to for way into this area. However, for the retail investors the mutual fund is actually intended, has not yet returned to the industry too has focused on bringing in the large investor, so that it can create a significant base corpus, which can make the retail investor feel more secure. Keywords: Mutual fund, Individual investors, Investors’ perceptions, Investor behavior.

Introduction Mutual funds have opened new vistas to millions of small investors by virtually taking investment to their doorstep. In India, a small investor generally goes for bank deposits, which do not provide hedge against inflation and often have negative real returns. He has limited access to price sensitive information and if available, may not be able to comprehend publicly available information couched in technical and legal jargons. Mutual funds are looked upon by individual investors as financial intermediaries/portfolio managers who process information, identify investment opportunities, formulate investment strategies, invest funds and monitor progress at a very low cost. Thus the success of mutual funds is essentially the result of the combined efforts of competent fund managers and alert investors. A competent fund manager should analyze investor behavior and understand their needs and expectations, to gear up the performance to meet investor requirements.

Operational Definition of Concepts Retail Investor Investor who buys and sells mutual fund for his personal account and not for another company or organization. Retail investors typically trade in much smaller amounts than institutional investors.

Investment Investment refers to purchase of financial assets. In the present study investment refers to purchase of mutual funds with an expectation of favourable future returns.

Mutual Fund A mutual fund is made up of money that is pooled together by a large number of investors who give their money to a fund manager to invest in a large portfolio of stocks and / or bonds

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Open-End Fund A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell.

Closed-End Fund A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering. The fund is then structured, listed and traded like a stock on a stock exchange. It is also known as a "closed-end investment" or "closed-end mutual fund."

Asset Management Company A company that invests its clients’ pooled fund into securities that match its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves.

Investment Behavior Investment behavior is defined as how the investors judge, predict, analyze and review the procedures for decision making, which includes investment psychology, information gathering, defining and understanding, research and analysis.

Investors’ Satisfaction Satisfaction denotes a set of attitudes about a particular thing. Thus, the term “satisfaction” for the purpose of the study connotes the attitude of the retail investors towards investment in mutual funds.

Attitude Attitude refers to the feelings, beliefs and opinions of the retail investors of the mutual funds.

Need for the Study Investment culture among the people of a country is an essential prerequisite for capital formation and the faster growth of an economy. Investment culture refers to the attitude, perception, and willingness of the individuals and institutions in placing their savings in various financial assets, more popularly known as securities. A study on the investors’ perceptions and level of satisfaction about the mutual fund, thus assumes a greater importance in the formulation of policies for the development and regulation of security markets in general and production and promotion of small and house-hold investors in particular. Investors perceives mutual funds to be better investment avenue than others because of the expectation of receiving higher return than other investment instruments along with the feelings of they being useful for retail investors. Furthermore, from security point of view close-ended and public sector mutual funds are presumed to be less risky. The mutual funds having balanced portfolio and large corpus size are believed to be possessing better professional expertise so to provide better return on investment along with transparent management of funds. Moreover, the investor also expects open-ended mutual funds should also be listed on stock exchanges like close-ended ones

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Statement of the Problem In the recent days most of the investors preferred to invest their funds on mutual funds. Since, the small and household investors constitute a vital segment of the Indian securities market and greater understanding of the perception, and behavior of these investors is very vital in the policy formulation on development and regulation of securities market to ensure the promotion and protection of interests of small and household investors. It should be noted that the “expectations” of investors play a vital role in the financial markets. They influence the price of the securities, the volume of trade and various other financial operations in actual practice. Besides, mutual fund investment capturing the attention of various segments of the society, like academicians, entrepreneurs, financial intermediaries, investors and regulators for varied reasons. With this background, a humble attempt is made in this work to study the investment behavior of the retail investors with regards to mutual fund. The issue investigated in the present study includes motivating factors, fund selection criterion, attributes of the fund, type of fund preferred, and Investor perception and satisfaction level of the retail investors.

Objectives of the Study In this study to examine the investment behavior of the retail investors ‘perception and level of satisfaction on mutual funds in Tamil Nadu with special reference to Villupuram District.

Scope of the Study The study is confined only to retail investors. In the present work, the most common dimensions which measure the investors’ perception and satisfaction level of the investors are only studied.

Research Methodology In this study based on field survey method. This study focused purely empirical and analytical which is based on primary data. Designing a suitable methodology and selecting the analytical tools are important.

Primary Data The primary data were collected directly from the sample investors through a well-devised questionnaire.

Secondary Data The secondary data relating to the study were collected from books, journals, research articles, magazines, reports, newspapers and websites.

Sampling Procedure The convenience sampling method was adopted for the study. The study is confined to Villupuram District only. Since the size of universe is infinite, the researcher decided to select a sample size of 300 respondent of retail on mutual fund investors.

Statistical Tools Used for the Analysis The following statistical techniques had been applied depending on the nature of data collected from the respondents, Percentage analysis, Descriptive analysis, Independent

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samples T-test, one way ANOVA, Correlation analysis, Regression analysis and factor analysis. The reliability and validity analysis of the data in this study was analyzed using Statistical Package for Social Sciences

Period of the Study The required primary data were collected from the selected respondents during six months period, from Jan 2016 to July 2016. Secondary data were collected for ten years period from 2007 to 2016.

Sampling Design As the universe of the study is entire Puducherry Union Territory, an attempt is made to stratify the Union Territory into strata. The stratification is done on the basis of geographical and administrative factors. Puducherry Union Territory constitutes four regions, namely, Puducherry, Karikal, Mahe and Yanam divided into 15 communes. In order to collect primary data for the purpose of the study, multi-stage sampling technique is adapted. The researcher selected 2 region namely Puducherry Karikal. The following table shows the sampling distribution of the present study.

Table Sampling Distribution S.No Commune Samples Limitations of the Study Pondicherry Region: In any study having a bearing on attitude, incomplete, 1 Pondicherry 50 wrong information and non-responses to some questions 2 Ozhukarai 50 could not be avoided. However, the researcher took 3 Villianur 50 maximum efforts to minimize such errors. Due to constraints Region: 1 Karaikal 50 of resource and time, only 600 retail investors from 6 2 Thirunallar 50 communes have been selected and studied. Hence the 3 T.R. Pattinam 50 conclusion drawn is specific and cannot be universalized. Total 300

Analisis and Interpretation 1. Out of the 300 respondents, 69.50 per cent were male and 30.50 per cent were female. The predominant age group (33.83 per cent) of the sample investors comes under the age group 26-35 years. 2. A good majority of the remaining respondents are distributed in the age group up to 36-45 years. 20.84% and 14.33% of the respondents are in the age group up to 25 years and above 45 years respectively. 3. The highest literacy rate (34.33%) of the respondents is H.Sc level. 23.33 per cent and 19.83 per cent of the respondents have SSLC and degree qualifications respectively. 11.67% and 10.84% of the respondents are having primary education and P.G and above qualifications respectively. 4. About 11.67%, 37.50%, 32.16% and 12.67% of the respondents earn annual family income about up to Rs.100000, Rs.100001-150000, Rs.150001-200000, and above Rs.200000 respectively.

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5. Out of the 300 respondents, 15.67% and 36% of the respondents are businessmen and employed respectively. 34.16% of the respondents are professionals and 14.17% of the respondents are engaged in agricultural activities. 6. Out of the 300 respondents, 26% of the respondents do investment in mutual funds about 10% of their savings. 48% and 20% of the respondents do investment about 11%-20% and 21%-30% of their savings in mutual funds respectively. About 6 per cent of the respondents only invest above 30% of their savings in mutual funds. 20.83%, 36.50%, 32.84% and 9.83% of the respondents made investment in mutual funds with the amount less than Rs.25000, Rs.25001-50000, Rs.50001-75000, and above Rs.75000 respectively. 7. 46.17% of the respondents were opt closed ended type of mutual funds and 53.83% of the respondents chosen open ended type of mutual funds. 11.66%, 32.17%, 29.17%, 17%, and 10% of the respondents invested in growth, income, balanced, liquidity, and tax benefit fund schemes respectively. 8. Friends and relatives, company representatives, agents, advertisements, journals and internet are the sources for the awareness of the respondents about mutual funds at 7.33%, 11%, 54.84%, 10%, 47.50%, and 9.33% respectively. 9. About 5.33 per cent of the respondents invested in mutual funds for buying a house. 7.33% and 11.17% of the respondents invested for buying a vehicle and children’s education purposes respectively. 19.50%, 18.33%, and 16.50% of the respondents invested for the purposes of son/daughter marriage, plan for retirement, and to earn more money respectively. 21.83% of the respondents invested for the purpose of tax benefit. 10. No significant association is found between the satisfaction level of the respondents belonging to different gender, age groups, educational status, and occupation towards investment in mutual funds in Puducherry. Whereas, there is a significant association between the satisfaction levels of the respondents belonging to different annual family income group and amount of wealth owned towards investment in mutual funds. 11. Female respondents, respondents in the age group up to 25 years, respondents having primary education, respondents belonging to annual family income 150001-200000, agriculturists, and wealth owned by respondents in the group Rs.500001-750000 towards investment in mutual funds. 12. Variation in the satisfaction level is high among the male respondents, among the respondents of age group above 45 years, among the investors having degree qualification, whose annual family income is Rs.150001-200000, among the respondents of agriculturalists, and among the investors who have wealth value Rs. 500001-750000 towards investment in mutual funds in Puducherry. 13. Out of the 600 respondents, 12.16%, 27.50%, 27.83%, 22.66% and 9.83% of the respondents are highly satisfied, satisfied, neither satisfied nor dissatisfied, dissatisfied, and highly dissatisfied respectively towards investment in mutual funds in Puducherry. The mean score reveals that the respondents have higher satisfaction (3.74) towards rate of return followed by market information (3.20), and safety and security (3.18). However, with regard to capital gain, the respondents have lower satisfaction (2.85). 14. No significant relationship is found between in the acceptance level of the respondents belonging to different gender, age groups, educational status, and occupation towards motivating factors for investment in mutual funds. However, a significant relationship is

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found different annual family income group and amount of wealth owned towards motivating factors for investment in mutual funds. 15. Male respondents, respondents in the age group 36-45 years, respondents having primary education, respondents belonging to annual family income up to Rs.100000, respondents of businessmen category, and respondents who have wealth value Rs. 500001-750000 are strongly motivated to invest in mutual funds. 16. There exists consistence in the acceptance level of the female investors, among the investors in the age group up to 25 years, among the investors having S.S.L.C qualification, among the investors who have annual family income above Rs.200000, among the investors of the agriculturist category, and investors who have wealth value above Rs.1000000 towards motivating factors for investment in mutual funds. 17. Out of the 300 respondents, 12%, 24.50%, 22.17%, 28.50%, and 12.83% of the respondents are strongly agree, agree, neither agree nor disagree, disagree and strongly disagree respectively towards various factors that motivating them to invest on mutual funds in Puducherry . The average acceptance score reveals that the respondents are strongly motivated by less capital to invest (3.83) followed by quality of the portfolio (3.64), and lesser the management fee payable to fund manager (3.30). However, with regard to assurance of allotment of units and loan facility on pledging the unit, the respondents have lower acceptance score (2.87). 18. Male respondents, respondents in the age group 36-45 years, respondents having P.G and above qualification, respondents who have annual family income up to Rs.100000, businessmen, respondents having wealth value up to Rs. 500000 are giving more importance to fund selection criterion. 19. About 9.33%, 19.17%, 28.50%, 28.67%, and 14.33% of the respondents opinion about importance of the fund selection criterion are highly important, show what important, not important, not very important and not at all important respectively. The average attitude score reveals that the respondents are giving more importance to rating by the rating agency (3.53) followed by the fund performance record (3.52) and agency and network of the sponsor (3.17). However, the respondents’ importance level is low in the case of reputation of the fund manager/ scheme (2.82) followed by the minimum initial investment (2.82). 20. Female respondents, respondents in the age group above 45 years, respondents having H.Sc qualification, respondents who have annual family income Rs.100001-150000, employed respondents, and respondents who have wealth value Rs. 500001-750000 have higher acceptance level towards attributes of the mutual funds. 21. There is a consistency among the acceptance level of the male investors, among the investors in the age group up to 25 years, among the investors having S.S.L.C qualification, among the investors who have annual family income Rs. 150001-200000, among the professionals, and among the investors who have wealth value above Rs. 1000000 towards the attributes of mutual funds in Puducherry. 22. About 11.66%, 28.83%, 28.16%, 22.66%, and 8.66% of the respondents strongly agree, agree, neither agree nor disagree, disagree and strongly disagree respectively towards attributes of the mutual funds. The average acceptance score reveals that the respondents higher acceptance level about relevance of mutual funds are useful for retail investors (3.62)

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followed by disclosure of net asset value of mutual funds on day to day basis (3.44) However, the respondents’ acceptance level is low in the case of role of MFs for the development of capital market (2.94). 23. It is inferred that the respondents have higher level of favourable attitude towards investment in company deposits (3.48) followed by investment in debentures (3.15), and mutual fund units (3.06). However, the respondents have low level of favourable attitude towards investment in bonds. Therefore, the respondents prefer investment in company deposits in the present market situation. 24. Ranging from 49 per cent to 56.66 per cent have problems like higher the fees and charges, lack of innovative products and lack of market segmentation in the investment of mutual funds. In the range of 40.33 per cent to 46.33 per cent, the respondents face problems like inadequate market information, inadequate advisory services, lack of automated response systems and fluctuations in stock market. Lack of investors’ education and inadequate regulatory framework are also the problems of the retail investors with respect to investment in mutual funds at 35.33% and 31.33% respectively. 25. Control over fees and charges, launching of innovative products, market segmentation, adequate market information, adequate advisory services, automated response system, stability in stock market, investors’ education, and regulatory framework are suggested by the retail investors for expanding mutual fund market in Puducherry.

Conclusion The emergence of an array of savings and investment options and the dramatic increase in the secondary market for financial assets in the recent years in India has opened up an entirely new area of value creation and management. In the olden days, investing mutual funds was confined to rich and business people. But, now a day it has become a household word and is very popular with people from all walks of life. Due to the reduction in the bank interest rates and high degree of volatility in Indian stock market, retail investors are looking for an alternative for their small time investments which will provide them a higher return and also safety to their investments

References 1. For Capital Market Research and Development, New Delhi. Gupta, L.C (1993). Mutual Funds and Assets Preference Household Investors Survey, Society 2. Alam, Pervaiz (2003). Mapping Mutual Fund Investor Characteristics and Modeling Switching Behaviour, Financial Services Review, April, pp. 39-59 3. Aman Srivastava (2007). An Analysis of Behaviour of Investors in India, ICFAI Journal of Behavioral Finance, June, Vol. 4, No. 2, pp.43-52

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PROBLEM CHALLENGES FACED BY WOMEN ENTREPRENEURS

Dr. R. Agila, M.Com., M.Phil., Ph.D., (PGDHR) Assistant Professor, PG and Research Department of Commerce Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam, Tamilnadu

E. Thulasi, M.Com., Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam, Tamilnadu

D. Rajasekar, M.Com., Srimath Sivagnana Balaya Swamigal Tamil, Arts and Science College, Mailam, Tamilnadu

Introduction The characteristics of men and women entrepreneur are generally very similar. The differences are found only in the age, personality, motivation and type of business started. Men start an enterprise between the age group of 25-35 years, whereas women do so in 35-45 age groups. Women are goal oriented, independent, flexible, tolerant, creative, realistic, enthusiastic and energetic because of which the management style differs from their male counterpart. Women are by and large born managers as they manage their house.

Definition Women entrepreneurs may be defined as a “woman or a group of women who initiate, organize and run a business enterprise”. Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a woman-run enterprise is defined as “as enterprise owned and controlled by a woman having a minimum financial interest of 51% of the capital and giving at least 51% of the employment generated in the enterprise to women”. Women entrepreneurs constitute 10% of the number of entrepreneurs in our country.

Concept of Women Entrepreneurs Based on the general concept of entrepreneur just discussed in the previous chapter, women entrepreneurs may be defined a woman or group ofwomen who initiate, organize and run a business enterprise. In terms of Schumpeterian concept of innovative entrepreneurs, women who innovate, imitate or adopt a business activity are called “women entrepreneurs”. The Government of India has defined women entrepreneurs based on women participation in equity and employment of a business enterprise. Accordingly, a women entrepreneur is defined as “an enterprise owned and controlled by a women having a minimum financial interest of 51 per cent of the capital and giving at least 51 per cent of the employment generated in the enterprise to women”.

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Functions of a Women Entrepreneurs 1. Exploration of the prospects of starting a new business enterprise. 2. Undertaking of risks and the handling of economic uncertainties involved in business. 3. Introduction of innovations or imitation of innovations. 4. Coordination, administration and control. 5. Supervision and leadership. The fact remains that, like the definition of the term ’entrepreneur’, different scholars have identified different sets of functions can be classified broadly into three categories:

Problems of Women Entrepreneurs Women entrepreneurs encounter two sets of problems, viz, general problems of entrepreneurs and problems specific to women entrepreneurs. These are discussed as follows: Problem of Finance: Finance is regarded as “life-blood” for any enterprise, be it big or small. However, women entrepreneurs suffer from shortage of finance on two counts. Firstly, women do not generally have property of their names to use them as collateral for obtaining funds from external sources. Stiff Competition: Most of the women enterprises are plagued by the scarcity of raw material and necessary inputs. Added to this are the high prices of raw material, on the one hand, and getting raw material at the minimum of discount, on the other. The failure of many women co-operatives in 1971 engaged in basket-making is an example how the scarcity of raw material sounds the death-knell of enterprises run by women. Stiff Competition: Women entrepreneurs do not have organizational set-up to pump in a lot of money for canvassing and advertisement. Thus, they have to face a stiff competition for marketing their products with both organized sector and their male counterparts. Such a competition ultimately results in the liquidation of women enterprises. Limited Mobility: Unlike men, women mobility in India is highly limited due to various reasons. A single woman asking for room is still looked upon suspicion. Cumbersome exercise involved in starting an enterprise coupled with the officials’ humiliating attitude towards women compels them to give up idea of starting an enterprise. Family Ties: In India, it is mainly a woman’s duty to look after the children and other members of the family. Man plays a secondary role only. In case of married women, she has to strike a fine balance between her business and family. Her total involvement in family leaves little or no energy and time to devote for business. Support and approval of husbands seem necessary condition for women’s entry into business. Accordingly, the educational level and family background of husbands positively influence women’s entry into business activities. Lack of Education: In India, around three-fifths (60%) of women are still illiterate. Illiteracy is the root cause of socio-economic problems. Due to the lack of education and that too qualitative education, women are not aware of business, technology and market knowledge. Also, lack of education causes low achievement motivation among women. Thus, lack of education creates problems for women in the setting up and running of business enterprises. Male-Dominated Society: Male chauvinism is still the order of the day in India. The speaks of equality between sexes. But, in practice, women are looked upon

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as abla, i.e.weak in all respects. Women suffer from male reservations about a woman’s role, ability and capacity and are treated accordingly. In nutshell, in the male-dominated Indian society, women are not treated equal to men. This, in turn, serves as a barrier to women entry into business. Low Risk-Bearing Ability: lead a protected life. They are less educated and economically not self-dependent. All these reduce their ability to bear risk involved in running an enterprise. Risk-bearing is an essential requisite of a successful entrepreneur. In addition to above problems, inadequate infrastructural facilities, shortage of power, high cost of production, social attitude, low need for achievement and socio-economic constraints also hold the women back from entering into business.

Business Opportunities for Women entrepreneurs Women in rural areas, where agriculture is the prominent activity, can take up agro based industry like food preservation, bakery, dairy and poultry. In industrial areas, ancillary units can be managed by women. In the areas dominated by textiles, weaving and handloom activities can be taken up. In urban areas, teaching, nursing, electronic and computer services can be started. Women entrepreneurs can start some of the industries like Agarbathi manufacturing, papad making, bedspread making, embroidery, handicraft exports, batik paintings, apparel manufacturing, catering services, restaurants, snackbars, sweetmeat stalls, soft drink stalls, retail shops-textiles, readymade garment, tailoring, grocery, drug store, run crèches, tutorial classes, typewriting-shorthand classes, computer institutes, florist shops, dry cleaning, pickle, dairy, contract for maintenance of office, milk distribution, service cenres like plubing, electrical repairs, stationery manufacturing unit, block printing on paper, textiles, packing materials, pathological clinics, travel agencies, photo-copier firms, telephone booths, photographic studios, working women’s hostel, design and events management, etc.

Future of Women Entrepreneurs In future, with the help of high technology, women will be able to work from home and thus balance between the work place and home. The opportunities for women will increase manifold with the changes in technological, cultural and social environment. Women need assistance and support in the marketing their products. An organization could be set up for marketing of the women entrepreneur products exclusively. A private distribution agency with wide distribution network can take up the marketing of products produced by women entrepreneurs.

Suggestions  Most of the women entrepreneurs are started their business under sole proprietorship smallscale. So that government has to aid their business and help those to start large-scale business like company form of organization.  Most of the Women Entrepreneurs are getting their finance from banking and Financial Institutions .So that government has to take initiative and supportive role for both banks and women entrepreneurs.  Government has to conduct special training programs, entrepreneurial development programmes, and improvement programs to Women Entrepreneurs as well as their employees to enhance their productivity.

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 The government has to preview the extension of labour laws and benefits to their organizations. Government should assist women to acquire entrepreneurial characteristics by providing technology and information which helps aspiring women to identify projects. Appropriate Voluntary Organizations should encourage by conducting exhibitions and seminars and organise vendor development programs to offer incubator facilities where an entrepreneur can manufacture a product without investing on infrastructure. Government and NGOs should promot small and medium enterprises of women with the support of constant counseling by special team members to help the aspiring women to identify their projects are needed.  The women entrepreneurs should be encouraged to take up leadership roles in all spheres of their lives. Training programmes for product / business development, marketing skills and methods should be facilitated to them along with sensitization on life skills technical skills, managerial skills etc. for effective participation in their business ventures.  Government should provide separate financial aid to women entrepreneurs so that they do not face any difficulty in setting up their organization.  Special infrastructural facilities should be provided to help women in establishing their enterprise easily and quickly.  Training Programmes specially directed at women entrepreneurs should be conducted to enhance their entrepreneurial skills and abilities which help them in day to day functioning of business.  Top ranking women entrepreneurs must be felicitated so that more women are encouraged and motivated to pursue such careers.  Provision for better educational facilities should be provided starting from school and further for higher education and also several vocational studies.

Conclusion Women entrepreneurs faced so many problems in aspects of financial, marketing, health, family, and problems. Some guidelines should be given by the govt. and the financial institution to the women entrepreneur at time to time. What women need for enterprises little training, some financial support and motivation at all levels-home, the society and the government. Its hope that suggestion forwarded in the article will help the entrepreneurs in particular to look this problems and develop better schemes by the govt.

References 1. Dr. (Mrs) Jayshree Suresh, Entrepreneurial development margham publications chennaI-600 017. 2. S.S. Khanka, Entrepreneurial development Chand & company ltd. New delhi-110 055.

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DEMONETIZATION: A MOVE TOWARDS DIGITAL TRANSACTION

T. Velayutham Assistant Professor, Department of Commerce, D B Jain College

S. Sairam Assistant Professor, Department of Commerce, D B Jain College

Abstract Wealth makes them, who were deemed worthless and worthy; if not, it is not wealth. On November 8, 2016, the government of India stripped higher denomination notes (INR 500 & INR 1000) from its circulation. Demonetization is one of the economic reform activities. It is generation’s memorable economic event. This affects the liquidity of the economy. Demonetization pushes the public to make digital payments. This paper will assess whether demonetization have a positive impact on digital transaction or not. The data for this study are extracted from secondary sources. This study is limited with the period of eight months.

Introduction Demonetization is the process of stripping a specific currency unit from its status legal tender. In other words, Demonetization is the process of withdrawal of particular form of currencies from circulation. Demonetization becomes necessary when there is a change in national currency. Demonetization is not stops with swapping of particular series of currency (currencies) but includes either introduction of new notes/coins with same denomination or completely/partially replacing of old demonetized currency (currencies) with new denomination notes/coins. The opposite of the term Demonetization is Remonetization. It is the contrast of demonetization, in which a new currency form got the status are legal tender. The currencies in any country (either in the form of notes or coins) are issued by central bank of such country. Therefore, the process of swapping and replacing of currency notes or coins are done by central bank. The main purpose of carrying out this process is to ambush black market and elimination of counterfeit currencies. Many countries likes Singapore, Fiji, USA, UK, Ghama, Nigeria, Myanmar, , Congo, USSR, Iraq, EU, Libya, North Korea, Zimbabave, Pakistan and Philipines s have attempted demonetization to restructure their economy. The purpose of demonetization is differs from country to country. India tried demonetization of certain denomination notes in circulation for three times-viz 1946, 1078 and 2016.

Demonetization in 2016 On November 8th, 2016 shriNarendramodi announced the demonetization drive in an unscheduled live televised address to the nation at 8:15 pm. In that address, honorable Prime Minister ShriNarendraModi declared that the circulation of all ₹500 and ₹1000 bank notes of Mahatma Gandhi series (issued by RBI in 1999) were no longer be legal tender (i.e. invalid) with effect from midnight of 8th November 2016 and announced that issuance of new ₹500 and ₹2000 notes of Mahatma Gandhi new series in exchange for the old notes. As per reserve bank of India (RBI) report, the old notes of ₹500 and ₹1000 were constituted to 86.4% of total value of currencies in circulations.

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Honorable Prime Minister also stated that all banks and post office will be closed for next day people can exchange their old currencies with the new one in the banks and post office from 10th November to 30th December 2016. There after they can exchange directly with reserve bank of India till 31st march 2017n by saying the reason for holding it so far. However petrol pumps, CNG and gas stations, government hospitals, railways and airlines booking counters, state government recognized dairies, ration stores and crematorium were allowed to accept old ₹500 and ₹1000 notes till 2nd December 2016. The specified bank notes (cessation of liabilities) ordinance 2016 issued by the government of India on 28th December 2016 ceasing the liability of the government for the banned bank notes and also imposing a fine up to 10000 or 5 times the amount of the face value of the bank notes, whichever is higher, for people transacting with them after 8th November 2016 or holding more than 10 of them after December 30 2016. The three main objectives of this drive or movement are:  Crubing black money from the economy.  Removal of counterfeit currencies.  Contain those counterfeit currencies fending against national interest (terrorism, youth driven into drugs etc). Later, the government of India added another goal of this movement which was digital economy or less cash economy, for which government have announced 10 incentives to the people who march towards digital transaction.  0.75 % discount on fuel: The Government Petroleum PSUs shall give incentive by offering a discount at the rate of 0.75 per cent of the sale price to consumers on purchase of petrol or diesel if payment is made through digital means.  POS machines in villages: To expand digital payment infrastructure in rural areas, the Government through NABARD will extend financial support to eligible banks for deployment of 2 POS devices each in 1 lakh villages with population of less than 10,000. These POS machines are intended to be deployed at primary cooperative societies/milk societies/agricultural input dealers to facilitate agri-related transactions through digital means. This will benefit farmers of one lakh village covering a total population of nearly 75 crores who will have facility to transact cashlessly in their villages for their agricultural needs.  RupayKisan Cards for farmers: The Government through NABARD will also support Rural Regional Banks and Cooperative Banks to issue “RupayKisan Cards” to 4.32 croreKisan Credit Card holders to enable them to make digital transactions at POS machines/Micro ATMs/ATMs.  Buy railway tickets online: Railway through its sub urban railway network shall provide incentive by way of discount up to 0.5 per cent to customers for monthly or seasonal tickets from January 1, 2017, if payment is made through digital means. Nearly 80 lakh passengers use seasonal or monthly ticket on suburban railways, largely in cash, spending worth nearly ₹ 2,000 crore per year.  Free accidental insurance: All railway passengers buying online ticket shall be given free accidental insurance cover of upto 10 lakh. Nearly 14 lakh railway passengers are buying tickets every day, out of which 58% tickets are bought online through digital means.

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 Incentives for railway passengers: For paid services e.g. catering, accommodation, retiring rooms etc. being offered by railways through its affiliated entities/corporations to the passengers, it will provide a discount of 5 per cent for payment of these services through digital means. All the passengers travelling on railways availing these services may avail the benefit.  Discount on policies sold online: Public sector insurance companies will provide incentive, by way of discount or credit, upto 10 per cent of the premium in general insurance policies and 8 per cent in new life policies of Life Insurance Corporation sold through the customer portals, in case payment is made through digital means.  No transaction fee on digital payments: Government departments and PSUs will ensure that transactions fee/MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by them. State Governments are being advised that the State Governments and its organisations should also consider to absorb the transaction fee/MDR charges related to digital payment to them and consumer should not be asked to bear it.  Benefits for merchants, traders: Public sector banks are advised that merchant should not be required to pay more than ₹ 100 per month as monthly rental for PoS terminals/Micro ATMs/mobile POS from the merchants to bring small merchant on board the digital payment eco system. Nearly 6.5 lakh machines by Public Sector Banks have been issued to merchants who will be benefitted by the lower rentals and promote digital transactions.  No cess on cashless payment less than 2K: No service tax will be charged on digital transaction charges/MDR for transactions upto ₹ 2000. The plan was kept secrecy. Except for finance Minister Mr. ArunJetley and the top officials of Reserve Bank of India, no one had the news about the activity which was on card for 6 months. The cabinet meeting was held early on 8th November 2016 and was not allowed to move out of the premises till the honorable Prime Minister finishes his address.

Need for Demonetization in 2016  With no demonetization drive since 1980s and even after opening up of conservative economy in 1991, tax evaders have hoarded a lot of money in home, lockers etc. which was disturbing the economy in stabilizing the rupee against the dollar.  The governor of Reserve Bank of India (RBI) and economic affairs secretary sakthikanta das explained in a press conference after Prime Minister shriNarendraModi’s announcement on demonetization that the one purpose of demonetization in terrorism funded by counterfeit notes. While the supply of all denomination notes had increased by 40% between 2011 and 2016, the ₹ 500 and ₹ 1000 bank notes increased by 76% and 109% respectively, Owing to forgery. They said that the forged cash were used for terrorism activities against India and therefore demonetization drive is for counter terrorism purpose.  The proved fake currency route through Pakistan, which is used in terror funding and anti national activities in India were beyond the government’s control. It is said that fake notes are sourced from same paper manufacturer that supplies to the Reserve Bank of India (RBI). Therefore it is difficult for the government of a country whose population is over 125 billion to handle various issues and stupid stiff opposition who speaks against India for its political gain.

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 The naxalite funding is through normal currency. According to one estimates, about 50000 to 60000 crores of their funding is in the form of cash. It will be very difficult for them to deposit.

Circulation of 500 and 1000 Rupee Notes in Terms of Volume and Value  The growth of cash economy in properties to Gross Domestic Product (GDP) was less than 10% until 2001. Now it is 12% to the GDP. Actually this should be going down as new banking habits pick up. The cash to GDP ratio must go down, it has increased. This has also been indicated by growth in high denomination currency (as high as 86.4%). This has led to distortion in the economy especially in rural estates, gold price, usurious lending to small and minor business. This is also- partly failure of banking system. Therefore cash economy moved deep in 2004-2009. Especially between 2005-2007. Cash economy does not mean illicit economy, it is unorganized economy. In India, 90% of the employment driven largely through cash this was resulted in huge cash hoardings transactions between real estates. So, it was distorted our economy past 10-12 years (this is called wealth effect). During this period stock market was also drastically developed without employment opportunities (stock market points developed by participating notes) which spoiled our economy. Therefore this situation can be solved by way of demonetization. It is one of the cleaning up the economy.  India is cash based economy in which 98% of transactions in terms of volume (or 65% of transactions in term of value) are made by using cash. Cash is difficult to handle and carry and it is difficult for the government to monitor the same.  Therefore by demonetizing the larger denomination notes (which is 86.4% of the total value), the government of India requested the people to move toward less cash economy (e- economy/ through institutionalized transactions).  State bank of India (SBI) stated that majority of the ₹ 1000 bank notes were not in circulation therefore, to bring such currencies in circulation, demonetization is required.  In India only 3% of the total population were filling a return in and of which 66% (i.e. 2% of the total population) were filling NIL returns. India needs to find better revenue for the betterment of India as a growing super power. Value and Volume of Transactions under United Public Interface (UPI) (Value and volume in billion) Percentage % Interpretation Month Value Volume Changes Changes 2  The volume & value of October 2016 0.40 0.10

November 2016 1.00 60.00 0.29 65.52 transaction UPI App grows December 2016 7.06 85.84 1.97 85.28 tremendously after demonetization January 2017 16.59 57.44 4.15 52.53  The value of transaction under February 2017 19.02 12.78 4.16 0.24 UPI increased by 98% from March 2017 23.91 20.45 6.16 32.47 April 2017 22.41 -6.69 7,00 12.00 October 2016 to may 2017. May 27.65 18.95 9.17 23.66 

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Value of Transactions under Bhim (₹in billion) % Interpretation Month Value (₹) Changes  The transactions through BHIM app have also December 2016 0.02 - grown because of demonetisation. It can also interpret January 2017 3.56 99.44 that due to cash shortage the people are force to go February 2017 6.23 42.86 digital payments and thereafter there was a sustainable March 2017 8.23 24.30 growth in making payments through BHIM. April 2017 10.02 17.86

May 2017 13.07 23.34

Conclusion Demonetization creates many inroads for digital payments. People are now becoming more comfortable with digital payment. Thus demonetization is considered as a major step to reform in economic growth and development. Digital transaction creates more transparency in flow of money which will helps in eradication of corruption. But the digital payment system has its own flaws (security). Therefore the government has to take necessary steps to cut down the security threat on digital payments & also they have to provide internet facility (Wi-fi) to the people as declared in the union budget 2017. Because digital transactions in remote areas are too low. So the government has to create awareness among rural people. Thus software and e- commerce industries have great scope of development after demonetization.

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INDIA’S TRADE WITH SAARC AND ASEAN: A COMPARATIVE ANALYSIS

S. Saravanan Assistant Professor and Head, Department of Economics Rajiv Gandhi Arts and Science College, Puducherry Dr. V. Vijayakumar Guest Faculty, Department of Commerce, Pondicherry University

Abstract In the Era of Globalization national economic activity has been transformed into transnational one. In this scenario the trade between countries plays a pivotal role in developing economies of scale, market efficiency and creating access to the global market. Though in this paradigm shift India is moving a step ahead and having economic relations through regional Integration by participating in different trade blocs through bilateral trade agreements or being a member state. A trade bloc is an Intergovernmental organization, where regional barriers to trade, (tariffs and non-tariff barriers) are eased or eliminated among the participating states. By outstripping East Asia in 2016, South Asia has become the fastest growing region in the world. This has come without any significant intra-region trade, which continues to behindered by various factors. To overcome these obstacles, India trade with sub regional cooperation like BIMSTEC, and other regional economic integration like ASEAN countries too. This paper attempts to analyse India’s trade relationship with SAARC and ASEAN comparatively for the period of 2001 to 2016. Keyword: SAARC, ASEAN, Regional Integration, Overall Trade, Foreign Trade

Introduction Regional Integration is the philosophy of life and has been in existence since the dawn of civilization. The form of Integration has been kept on changing according to the needs and motives of human beings. Integration is nothing but the willingness of individuals, societies or states to help each other. Integration is voluntary in nature. It begins initially at community level and extends to national, regional and international level. Regional economic Integration means collaborating among a group of countries on economic matters for mutual benefits and wellbeing. (Chase, 2006)After setting up of the United Nations Organization (UNO), several regional Integration arrangements were made. It gave birth to different regional trade blocs as European Union, ASEAN, SAARC, BIMSTEC, GCC, APEC and many in different regions of the world. Before independence British and some common wealth countries were main destination for India. At the time of Second World War, India was main exporter to Britain. India’s total exports were oriented to Britain and somewhat to Japan. After independence India’s Merchandise trade was expanded and planned through the concept of planning. Under this five year plans were introduced. Later on, in 1991 a new phase of liberalization started.(Singh, 1985) The doors of foreign trade were opened. In comparison to china, India was dawdler to make its economy restriction free. But gradually the need of time was considered and India took various steps to boost up its situation of foreign trade through regional trade agreements and with participation in regional trade blocs. India is participating in different trade blocs for economic cooperation. India is an economic trade partner with EU which is a largest trade bloc of the world and an external trade partner with ASEAN and India is developing its relation on many levels with ASEAN. India is a founder country with SAARC which is a group of developing countries. Except this India has bilateral and multilateral trade with other regions of the world

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too. India needs to concentrate more on export side because since independence we have got negative balance of trade and still India has trade deficit. In present study, two prominent trade blocs for India have been taken for study. These are SAARC and ASEAN. A short profile of both trade blocs is given here blow:

SAARC (South Association for Regional Cooperation) The South Asian Association for Regional Cooperation (SAARC) is an economic and geopolitical cooperation among eight members. The idea of regional political and economic cooperation in South Asia was first coined in 1980 and the first summit held in Dhaka on 8 December in 1985 led to its official establishment by the governments of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The SAARC policies aim to remote welfare economics, collective self-reliance among the countries of South Asia, and to accelerate socio- cultural development in the region. India is a member state of this regional trade bloc.1

ASEAN (Association of South East Asian Nations) The Association of Southeast Asian Nations or ASEAN was established on 8th August1967 with the signing of the ASEAN Declaration in Bangkok, Thailand by the Founding Fathers of ASEAN namely Indonesia, Malaysia, Philippines, Singapore and Thailand. Later on other countries joined ASEAN, Brunei Darussalam on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN. The main objective of the association was to accelerate economic growth, social progress and cultural development among its members, protect the peace and stability of the region and provide opportunities for the member countries to discuss their differences peacefully.2 India is a sectoral dialogue partner of this regional trade bloc.

Causes for low Intraregional trade among SAARC According to various report of World Bank and world economic forum south Asian region being least integrated have lowest intra-regional trade among themselves. It can be attributed to following factor. Economic factor: Being one of the poorest region along with sub Saharan for long with low share in external trade. Being underdeveloped almost all have placed high tariff and non- tariffbarrier. Almost all country for long produced similar goods, resulting inter competition among self-e.g. Bangladesh textile, Pakistan Basmati, Srilanka srimp Historical factor: mutual suspicion among countries held hostage economic integration. India reluctance to initiate SAARC and SAFTA poor performance can be attributed to it. Geographical factor: poor connectivity and nation self-interest further inhibiting connectivity e.g. Pak denial to give passage to Afgan, Bhutan denial to join Motor vehicle pact, India suspicion to OBOR. Political factor: different ideology of countries e.g. democracy has taken roots in many countries recently.

Objectives of the Study  To analyse the situation of India’s export and import to SAARC and ASEAN for the period 2001 to 2016

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 To examine fluctuation in the percentage share of SAARC and ASEAN in India’s total export and import.

Research Methodology Collection of Data This research study is descriptive in nature and primarily based on the secondary sources of data collected from various sources like research papers, reports and websites related to foreign trade. The purpose of it is to portrait the picture of Indian export and import situation and relative share of trade to SAARC and ASEAN countries in the total export and import of India.

Period of Study The data for the period 2001to 2016 is taken for the purpose.

Data Analysis (Tools and Techniques)  Trend Analysis has been used through Scatter Diagram, which is the simplest and easiest technique to find trend in data. The data has been analysed using MS-Excel and some simple mathematical calculation like percentage, ratio etc. have been used.

Limitations of the Study The scope for this study is limited:  The data collected belongs to secondary source of data only and primary data has not been included for the purpose.  Foreign Exchange rate is supposed to be consistent. No change has been considered in composition of traded goods.

Table 1 India’s Trade with SAARC (2001 to 2016) (Us $ in thousands) Total Increase/Decrease Trade Exports Imports Year Trade In Total Trade Growth 2001 2092222 589266 2681488 1502956 2002 2415180 491615 2906795 1923565 27.99 2003 3875186 634333 4509519 3240853 68.48 2004 4579673 926088 5505761 3653585 12.74 2005 5399782 1379695 6779477 4020087 10.03 2006 6232732 1499053 7731785 4733679 17.75 2007 7848397 1712902 9561299 6135495 29.61 2008 10130441 2180010 12310451 7950431 29.58 2009 7373574 1515494 8889068 5858080 -26.32 2010 11114204 2063704 13177908 9050500 54.50 2011 12937536 2501198 15438734 10436338 15.31 2012 13738380 2297013 16035393 11441367 09.63 2013 16899974 2156246 19056220 14743728 28.86 2014 19836415 2592419 22428834 17243996 16.96 2015 17257457 2952404 20209861 14305053 -17.04 2016 16933209 2571638 19504847 14361571 00.40 CAGR 13.20 Source: Compiled from Export Import Data Bank, Ministry of Commerce, and Government of India.

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Chart 1 India’s Exports to SAARC Chart 2 India’s Imports from SAARC

Table 2 India’s Trade with ASEAN (2001 to 2016) (US $ in thousands) Total Increase/Decrease Trade Year Exports Imports Trade In Total Trade Growth 2001 3315112 4345489 7660601 -1030377 2002 4503303 4807277 9310580 -303974 21.54 2003 5071800 6686881 11758681 -1615081 26.29 2004 7552218 8549995 16102213 -997777 36.94 2005 10285769 10632023 20917792 -346254 29.91 2006 12369341 16300608 28669949 -3931267 37.06 2007 13824081 21031035 34855116 -7206954 21.57 2008 19433467 26698438 46131905 -7264971 32.35 2009 17898835 23968100 41866935 -6069265 -09.25 2010 22958453 29640182 52598635 -6681729 25.63 2011 34497614 40331863 74829477 -5834249 42.27 2012 32295000 42737956 75032956 -10442956 00.27 2013 37885468 42308784 80194252 -4423316 06.88 2014 31294246 44457579 75751825 -13163333 -05.54 2015 26428121 41516394 67944515 -15088273 -10.31 2016 26381170 38222455 64603625 -11841285 -04.92 CAGR 14.25% Chart 4 India’s Exports to ASEAN Chart 3 India’s Total Trade to SAARC

Chart 5 India’s Imports from ASEAN

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Table 3 Trade Share of SAARC and ASEAN in India’s Overall Trade for 2001 to 2016 (US $ Thousands) Source: Compiled from Export Import Data Bank, Ministry of Commerce, Government of Year India's ASEAN Trade SAARC Trade Overall Trade Total Trade Share (%) Total Trade Share (%) 2001 94549595 7660601 8.10% 1502956 1.58% 2016 617031704 64603625 10.47 14361571 2.32%

Results and Discussion This paper attempted to depict the picture of India’s trade situation with two big regional trade blocs as SAARC and ASEAN. It is evident from the Table 1 and Table 2 that India’s trade with SAARC and ASEAN have been increased in terms of volume. As India’s exports and imports both have shown upward trend but total trade has been fluctuated for both blocs. It is clearly defined by analysis of its overall trade growth which explained that India’s trade with SAARC countries had observed the highest growth rate in 2003(68.48%) and it was observed as negative growth rate constantly as -26.32 percent and -17.04 percent for the year 2009 and 2015 respectively. At present trade growth was recorded at declining rate as -17.04 percent in 2015 and reached to its lowest as 0.40 percent in 2016 during the study period. On the other hand, India’s trade with ASEAN countries also has been recorded having increasing trend. Exports and imports both have been increased during the study period. While we analyse the overall trade growth, it was recorded as 21.54 percent in 2001 and with increasing trend reached 37.06 percent in 2006. Later on with a tremendous growth rate, it reached at its highest as 42.27 percent in 2011. After it was recorded a continuous declining growth rate and observed as -04.92 percent negative growth rate in 2016. India’s trade trend as exports and imports with SAARC and ASEAN for 12 years can be viewed through Chart 1, Chart 2, Chart 3 and Chart 4 graphically. The trade share of SAARC and ASEAN and its change in India’s overall trade can be analysed through the Table 3. It is evident from the table that in 2001, India’s overall trade was stood for 94549595 US dollars (Thousands) which includes exports for 43878489 US dollars (thousands) and imports for 50671106 USdollars (Thousands). In India’s overall trade, ASEAN’s trade share was counted for 8.10 percent for having 7660601 US dollars (Thousands) trade. On the other hand SAARC’s trade share in India’s overall trade was recorded as 1.58% percent with a trade figure of 1502956 US dollars (Thousands). In 2016 India’s overall trade was observed as 14361571 US dollars (Thousands) where exports accounted for 16933209 US dollars (Thousands) and imports for 19504847US dollars (Thousands).It was about manifold folds growth in India’s trade from 2001 to 2016. In 2016 ASEAN’s trade share in India’s overall trade was recorded as 10.47% from 8.10% percent with a trade figure of 7660601 US dollars (Thousands) from 64603625US dollars Thousands this analysis of trade witnessed that ASEAN has larger share in India’s overall trade than SAARC. The descriptive figures as exports, imports, total trade, increase/decrease in overall trade for the years and overall trade growth rate can be seen with the help of Table 1 and Table 2for SAARC and ASEAN respectively. Lastly Chart 3 and Chart 6 show the trend of India’s trade with SAARC and ASEAN with Trend Equation and R square which explained the linear relationship and strength of association. This is the possible analysis with few limitations of India’s trade with SAARC and ASEAN.

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Conclusion  India’s trade with SAARC and ASEAN can be concluded in some major points  India’s trade with SAARC and ASEAN had increasing trend as exports and imports have increased in terms of volume during the period of Sixteen years.  India’s trade with SAARC and ASEAN had increased but also declined two times for both blocs. And have been observed as fluctuated in terms of overall trade growth rate.  India’s trade with ASEAN countries has large trade share in terms of volume than SAARC even SAARC is a member state of this bloc.  India’s trade growth can be viewed through CAGR (Compounded Annual Growth Rate) for both countries. SAARC’s CAGR was 13.20% percent and ASEAN’s CAGR has been 14.25%percent for the study period. It revealed that India’s trade with ASEAN has grown rapidly than SAARC.  India’s trade share with ASEAN is greater than SAARC. Here it can be concluded that SAARC needs to open some more ways of economic development with its member states.  India needs to maintain its trade with ASEAN at a stable level of volume and growth rate as it was observed negative and declining since 2014 to 2016.

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DEMONETIZATION AND ITS IMPACTS ON INDIAN ECONOMY

K. Sulochana Ph.D. Research Scholar, Associate Professor and Head, PG & Research Department of Commerce Arignar Anna Government Arts College, Villupuram

Dr. D. Ganesan Research Guide, Associate professor and Head, PG & Research Department of Commerce Arignar Anna Government Arts College, Villupuram

Abstract On 8th November 2016 night at 8.15 P M Prime Minister of India Mr. Narendra Modi in his unscheduled television address to the nation announced that the currency notes of 500 and 1000 denomination will not be a legal tender money from midnight. Government took this step of demonetising the currency as a tool to fight against black money and corruption in Indian Economy. Demonetization is the act of changing the existing currency in another form. The old units should be retired and replaced by new currency. In other words demonetization means either introducing new notes or coins of the same currency or fully replacing the old currency with new currency. There is a one important thing exist on economics, which is remonetisation, in which forms of payment is restored as legal tender. There are so many reasons, why governments demonetized their nation’s currency. Some reasons are like resisting inflation, resist corruption, and discourage a cash system in the country. In November 2016, The Indian government has taken a bold step to demonetize the 500 and 1000 Rs (fully ban). Currency notes, these two biggest denominated notes accounted 80% of the currency supply. The government’s main objectives of note ban is, to eradicate counterfeit currency, resist tax evasion, destroy the black money, and terrorist financing activities, and to encourage the country towards the cashless economy. This decision taken by government is for welfare of the nation, but so many questions comes in mind that, would note ban decision actually eradicate the black money, if does then at what extent black money will come out. What should be the impact of this decision on Indian economy? Would Indian economy be prosperous or would be poor. India has traditionally been a cash intensive economy. According to an estimate, about 78 per cent of all consumer payments in India are affected in cash it was, therefore, obvious that currency squeeze during the demonetization period would have had some adverse impact on economic activity, although such impact was expected to be transient. Keywords: Demonetization, impacts, corruptions, currency, Indian economy.

Introduction On November 8, 2016, it was decided to demonetize high value currency notes of denomination of ` 1000 and ` 500 (called specified bank notes - SBNs). Such notes, valued at ` 15.4 trillion, constituted 86.9 per cent of the value of total currency in circulation. The decision was in continuation of a series of measures taken by the Government of India during last two years aimed at eliminating corruption, black money, counterfeit currency and terror funding. The decision was guided by the aim of reaping its enormous potential medium-term benefits in the form of reduced corruption, greater digitization of the economy, increased flow of financial savings and greater formalization of the economy. All of these would lead to higher GDP growth and tax revenues that could be used by the Government for inclusive and stronger economic growth within the norms of fiscal prudence, besides contributing to overall improvement in business environment.

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Objectives of the Study  To describe the demonetization concept in India.  To identify the impact on Indian economy.

Data Collection Secondary data has used for the study. Secondary data is collected from library, text books, and journals, articles from news papers and from relevant websites available on internet.

Demonetization in India 1946: Rs.1,000, Rs.5,000, and Rs.10,000 notes were taken out of circulation in January 1946. The Rs10,000 notes were the largest currency denomination ever printed by the Reserve Bank of India, introduced for the first time in 1938. All three notes were reintroduced in 1954. Historically, previous Indian governments had demonetized bank notes. In January 1946, banknotes of Rs1,000, Rs5,000, and Rs10,000 notes were taken out of circulation. The Rs10,000 notes were the largest currency denomination ever printed by the Reserve Bank of India, introduced for the first time in 1938. In the year 1945 all three notes were reintroduced. In 1977 Wanchoo committee (set up in 1970s), a direct tax inquiry committee, suggested Demonetization as a measure to unearth and counter the spread of black money. On 28 October 2016 the total banknotes in circulation in India was Rs.17.77 trillion (US$260 billion). In terms of value, the annual report of Reserve Bank of India (RBI) of 31 March 2016 stated that total bank notes in circulation valued to Rs.16.42 trillion (US$240 billion) of which nearly 86% (around Rs.14.18 trillion (US$210 billion)) were Rs.500 and Rs.1,000 banknotes. They were taken out of circulation from 2016. This is not for the first time Government Demonetizing the currency. Earlier to this India has witnessed demonetization twice. For the first time demonetization took place in pre independence period. In January 1946, for the first time demonetization took place in India. During this demonetization currency notes of 1000 and 10000 rupees were withdrawn from the circulation and new currency notes of 1000, 5000 and 10000 denomination rupees were introduced in the year 1954. On 16th January 1978, Government of India Demonetized the currency notes of 1000, 500 and 10000 rupee notes as a means to counterfeit money and black money. The present demonetization is the third occurrence in Indian Economy and it is the second Demonetization in the post independence period.

Impact of Demonetization on Indian Economy Government of India demonetized the currency as a tool to fight against corruption and black money, which are the major problems of Indian economy. The present demonetization will be having some effects on Indian economy. Some of the major effects of demonetization are as follow.

Effect on Parallel Economy One of the major objectives of the demonetization is to fight against the black money. With the demonetization the black money within the economy will be blocked as the owners of the

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Short Run Effect on Money Supply Money supply will be reduced in the market due to withdrawal of currency notes from circulation. This effect will be the short run impact of demonetization. The problem of money supply will be solved when the new currency notes widely circulated in the market. In that time the money supply growth was declined by 3%. However, it noted that in the case the RBI decides to print the entire 86 per cent of the high denomination notes, money supply will pick up with the new notes being gradually circulated over a period of time.

Effect on Consumption Decrease in money supply as a result of demonetization is also having an impact on production and consumption. Due to decrease in money supply production decreases and it affect the consumption negatively.

Fall in the Prices One major impact of this is going to be seen in cases where the goods are priced on the basis of demand. Price level is expected to be lowered due to moderation from demand side. This demand driven fall in prices could impact two major categories i.e.; Consumer goods and Real Estate. Consumer goods prices are expected to fall only marginally due to moderation in demand as use of cards and cheques would compensate for some purchases. Real Estate and Property prices in this sector are largely expected to fall, especially for sales of properties where major part of the transaction is cash based, rather than based on banks transfer or cheque transactions. In the medium term, however the prices in this sector could regain some levels as developers rebalance their prices (probably charging more on cheque payment).

Increases in Bank Deposits The demonetization increases the deposits in current account and savings bank account. As government announced the demonetization, the money held by the household sector for the emergency purposes will be deposited with the banks, which will increase the deposits in the banks. The accumulation to their deposit base continues at a steady base, data from Reserve Bank of India (RBI) show. On December 23, total deposits — time and demand — stood at Rs104.69 lakh crore; on June 9, the total value of demand and time deposits with the banking system stood at Rs105.78 lakh crore, up more than 1%. State Bank of India (SBI) chairman Arundhati Bhattacharya had observed in May that around 65% of the inflows during demonetization were in the system. The government announced the withdrawal of high-value notes on November 8 and the window for banks to accept the demonetized Rs500 and Rs1,000 notes was between November 10 and December 31. Bankers had anticipated that up to 40% of the deposits that flowed in post November 10 would remain with them.

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However, it would now appear, the deposits have been far more sticker. Over the past year or so, deposits have grown at a healthy pace, and the fortnightly growth (year-on-year) has rarely fallen below 10%. The report said 98.96% of the Rs 1,000 and Rs 500 denomination banknotes that had been invalidated had been returned. The central bank said “subject to future corrections based on verification process when completed,” the estimated value of the banned notes it “received” was Rs 15.28 trillion. This compares with the Rs 15.44 trillion of the banned notes that were in circulation as of November 8, according to data given by minister of state for finance Arjun Meghwal to Parliament on January 21.

Increases in Alternative Modes of Transactions Due to demonetization the cash transactions are facing a reduction, which increases the other alternative modes of transactions like use of credit cards, debit cards online payments and transactions etc. Digital payments have increased in the range of 400 to 1,000 per cent since November 8. This figure does not include transactions done through Master and Visa cards," Prasad said while inauguration a new TV channel and a website to educate people about digital payments.  Transactions on e-wallets have increased from 17 lakh per day to 63 lakh per day and value of transactions has increased from Rs.52 crore to Rs.191 crore  Volume of transactions using Rupay card has increased from 3.85 lakh per day to 16 lakh per day and value from Rs.39.17 crore to Rs.236 crore

GDP Will Decrease in the Short Run GDP will be hurt due to the demonetization. GDP of India may fall as a result of demonetization. The extent of fall may be very less and it exists only for a short duration of time. This fall may not affect the growth of the economy. Demonetization brings GDP growth rate has slumped down to 6.1% in the January – March period. The Central Statistics Office’s (CSO’s) first advance estimate for India GDP growth rate in 2017-18 at 6.5% is lower than the 7.1% recorded in 2016-17

Financial Sector This section sets out the impact of demonetization on banks; liquidity conditions and transmission of monetary policy.

Balance Sheet and Profitability of Banks Demonetization has had a significant impact on the balance sheet of scheduled commercial banks (SCBs), both in terms of size and composition.

Balance Sheet Effects Decline in currency in circulation on account of demonetization led to a surge in bank deposits. The demonetized notes were accepted at bank counters till December 30, 2016. Between October 28, 2016 and January 6, 2017 (i.e., days immediately prior to and after demonetization for which fortnightly banking system data are available), total currency in circulation declined by about ` 8,800 billion. This, in turn, was largely reflected in sharp increase

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” of about ` 6,720 billion in aggregate deposits of the banking system even after outflows in NRI deposits during the period. Demonetization has been progressing at a fast pace. Between end-December 2016 and early March 2017, there was a net increase in currency in circulation by about ` 2,600 billion. During this period, deposits with banks also declined moderately. Importantly, currency in circulation in terms of number of pieces and value has been steadily rising since early January 2017 (Chart 2). Source: RBI Banks furnish data on their major assets and liabilities on a fortnightly basis. As per data available for the reporting Fridays of October 28, 2016 (prior to demonetization) and February 17, 2017 (latest available), aggregate deposits of SCBs increased by` 5,549 billion during the period (Table 1).

Table 1 Changes in Major Assets and Liabilities of SCBs –October 28, 2016 and February 17, 2017 Liabilities Assets 1 Aggregate deposits 5,549 1 Bank Credit 1,008 2 Borrowings -56 2 Investment in Government Securities 4,560 3 Net other assets -75 Total 5,493 Total 5,493 Bulk of the deposits so mobilized by SCBs has been deployed in: (i) reverse repos of various tenors with the RBI; and (ii) cash management bills (CMBs) issued under the Market Stabilization Scheme (which is a part of investment in government securities in the balance sheet of banks). Loans and advances extended by banks increased by ` 1,008 billion. The incremental credit deposit ratio for the period was only 18.2 per cent. Additional deposits mobilized by commercial banks have been largely deployed in liquid assets. This may be due to the expected transitory nature of the bulk of such deposits and weak demand as reflected in the subdued growth of credit.

Profitability of Banks Banks’ net profits essentially reflect the difference between interest earned on loans and advances and investments, and interest paid on deposits and borrowings, adjusted for operating costs and provisions. Loans and advances and investments, which are the main sources of interest income, together constitute more than 85 per cent (61 per cent accounted for by loans and advances and 25 per cent by investments) of banks’ consolidated balance sheet. Post- demonetization, there has been a surge in the current account and saving account (CASA) deposits of banks. The sharp increase of 4.1 percentage points in the share of CASA deposits in aggregate deposits to 39.3 per cent (up to February 17, 2017) resulted in a reduction in the cost of aggregate deposits. The cost of CASA at 3.2 per cent is significantly lower than the weighted average term deposit rate at 7.1 per cent. Banks have also lowered their term deposit rates; the median term deposit rate declined by 38 bps during November 2016-February 2017. As

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detailed in Section II.2, the decline in the cost of funding resulted in decline in the 1-year median marginal cost of funds based lending rate (MCLR) by as much as 70 bps post-demonetization (November 2016-February 2017). Banks earned return of around 6.23-6.33 per cent under reverse repos and market stabilization scheme (MSS)as against the cost of CASA deposits of around 3.2 per cent. Accordingly, for an average deployment of about ` 6 trillion in a quarter under reverse repos and MSS securities, banks’ net interest income from increased deposits is estimated at about ` 45 billion in a quarter after demonetization. Banks continue to enjoy the increased share of low cost CASA deposits, although it is gradually declining with the increase in currency in circulation. The increase in net interest income would need to be adjusted for the cost of managing withdrawal of SBNs and injection of new bank notes (such as calibration of ATM machines, staff overtime, security arrangements, lower fees/waiver of fees on digital modes of payments), the exact details of which are not available at this stage. Strategies for Tackling Black Money The distillation of various approaches can be summarized as under:  Establish identity of persons (through PAN Card, Aadhar Card etc.) operating in the country citizens and foreigners.  Enable low the cost direct bank transfers (Implementation of NEFT/IMPS/RTGS and other formats) including direct transfers of subsidies to the beneficiaries under the Aadhar scheme.  Enable electronic register of assets (Underway through electronic land records, digitization of revenue records)  Reform tax system so that cost of compliance is lower than cost of tax evasion. (through initiatives such as Saral forms, e-filing, self-declaration etc.) Indirect tax system through simplification (GST).  Widen the net for disclosure by filing Income Tax return. (auto processing returns for tax refunds)  Regulations that increase costs for black money creating activities. (Prevention of Corruption Act etc.)  Create attribution chain for funds entering and exiting the country (such as through P-Notes, FDI, Prevention of Money Laundering Act etc.)  Create e-trails of both incomes and expenditure.  Control on holding of cash and physical money including Indian and foreign money. (FEMA, recent demonetization)

Conclusion Demonetization in Indian economy is having negative impact on the different sectors of the economy. Majority of the negative effects are short run effects. All these effects are solved when the new currency notes are widely circulated in the economy. On the other hand people are facing some problems in the exchange of currency notes. Even though people are facing such a problem people are ready to bear these problems for its positive effect on the economy. If government successfully clears all the problems, drawbacks associated with the demonetization, this demonetization will become the successful economic revolution in India and we can expect a better tomorrow with corruption free India.

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References 1. Partap Singh. 2013. Depreciation of Rupee in Indian Economy: An Analysis, “International Journal of Innovations in Engineering and Technology (IJIET)”, Vol. 2 Issue 4 August 2013 332, (ISSN: 2319 – 1058) 2. Partap Singh. 2013. Gold Prices in India: Study of Trends and Patterns, “International Journal of Innovations in Engineering and Technology (IJIET)”, Vol. 2 Issue 4 August 2013 332, (ISSN: 2319 – 1058) 3. Partap Singh. 2010. Impact of Financial crisis on Indian Economy “Southern Economist” Vol. 49, no. 2. May. 15, 2010; (ISSN: 0038-4046 4. http://www.business-standard.com/article/economy-policy/five-likely-effects-of- demonetisation-on-economy- 116110901411_1.html 5. http://www.business-standard.com/article/economy-policy/five-likely-effects-of- demonetisation-on-economy- 116110901411_1.html 6. Newspapers: The Economics Time, August –September, 2012, the Business Line, July- September, 2012.

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A SURVEY ABOUT BANKING APPLICATIONS AFTER DEMONETIZATION

K. Kulunthan Assistant Professor, Department of Computer Science Srimath Sivagnana Balaya Swamigal Tamil, Arts & Science College, Mailam, TamilNadu

D. Gopinath Assistant Professor, Department of Computer Applications Srimath Sivagnana Balaya Swamigal Tamil, Arts & Science College, Mailam, TamilNadu

Abstract Demonetization term and plan had a tremendous change in India. The main purpose of demonetization is to practice cashless transactions and to make the country fully digital. To support the need the role of e- wallets and mobile banking applications seems to be very essential. Reward points for using debit/credit cards are owed separately by the consumers and its leads to encourage cashless transactions among the public. Discounts, offers, cash back and coupons are the gateways to temp the user to get them into the digital world. Keywords: E-wallets, Rewards, bitcoins, Demonetization

Introduction The real revolution in banking sectors starts due to the increase in usage of smart phones among the public. Even we can split the people’s awareness before Internet banking and Mobile banking. Before introducing mobile applications, most of the banks introduced internet banking for transactions and cash deposit machines to deposit money without visiting the banks. The idea has been worked out by decreasing the amount of time spending at the bank by the public. The problems or defects in net banking are minimized and IMPS, MMID were introduced in mobile applications.

Banking Applications Most of the leading banks having bank applications are user friendly and the huge benefits of the applications are being experienced by the public. During demonetization the importance of applications is well known by the customers and the applications too ready to facilitate the public needs. The work done at the banks by the employees can be done by the people using the applications i.e NEFT, RTGS, IMPS, to view and pay loan amount, to request cheque book, credit cards. The statistics shows that the usage of applications during demonetization is huge and after that it was less down due to the cash in hands of the people. Some of the banks introduced Rewards application (points based on the usage of debit and credit cards), the points will be converted to rupees when it reaches the limit and further it may transfer to bank account or it may used for commercial purpose.

E – Wallets E-wallet is a type of electronic card which is used for transactions made online through a computer or a smart phone which is recognized or part of any government or private banks.The

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” building blocks of E-wallet were software which provides security, encryption of the data and information which holds all the details of the user in a database server. Classification of wallets can be of four types:  Wallet related to banks or powered by bank (e.g. Phonepe, Vpayqwik),  Wallet related to telecom (e.g. airtelmoney,jiomoney),  Wallet related to e-commerce (e.g paytm, ),  Wallet owned by private sectors(MobiKwik, Payumoney).

Fig 1 Fig 2 MobiKwik increased users over 40 percent after the demonetization. Currently, 150 million users using the application for online transactions and also the company had achieved $ 10 billion Gross Merchandise Value (GVM) by 2017. (Fig1 represents the overall user for both MobiKwik and Paytm) PaytmGVM arises from $1 billion by 2016 to $2 billion by 2017 because of demonetization. The company turn over daily crosses Rs.120 crores daily and it achieves using the 80 million customers. (Fig: 1 represents the overall sales ratio for both MobiKwik and Paytm)

BHIM Another milestone in the wallet category is BHIM (BHarat Interface for Money), introduced by Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) to afford infrastructure to entire banking system in India for electronic payment gateway. NPCI (National Payments Corporation of India ) connects 56 member banks and have ten core promoter banks like State abnk of India, Canara Bank, Bank of Baroda, HDFC and HSBC etc., More than 100 merchants are tied with BHIM in 12 kinds of categories like Tours and Travels, Online shopping, Telecom, Insurance and Mutual Funds, Entertainments, Wallets, DTH and UTI complaint partners. BHIM is a unique payment solution which can be used without internet. We can register for the service by dialing *99# from any phone and avail the same features of BHIM on your mobile screen.

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Benefits of E-Wallets  Cash back offers, discounts, coupons and bonuses attract many users.  Efficiency is high; we can transfer or increase our monthly/daily transactions up to the maximum by submitting our KYC details.  Convenience and enhanced security is the other two important benefits of digital wallets.  Extending value added services through 24 x 7 branches banking experience.  Substituting voice communication through texts and images for deaf and dump users.

Limitations  Inter transactions between two different companies of wallet cannot be done.  International money transfer is restricted.  Most of the wallets depend upon the mobile devices.

Rewardz Applications The next version of banking applications is giving loyalty or reward to the customers having debit cards. Instead of credit card users, debit card customers enjoying this benefit. The points is calculated by the usage of card i.e points accumulated over POS(Point of Scale) or any other online transactions. The points can be redeemed by booking movie tickets, mobile/DTH recharge and also for merchandise. (IOB) and State Bank of India (SBI) are some of the banks providing the Rewardz applications as IOB Rewardz and SBI rewardz correspondingly.

Bitcoin Bitcoin is a virtual currency referred as cryptocurrency and also it is the first decentralized digital money, not associated with any government bodies, banking sectors or financial institutions. It is the next revolution in digital money introduced in 2009 for the transaction of money without the pointing out identity or other transaction details of the customer. The Bitcoin value is not stable; it raises or falls day by day according to market demand and supply of the country. The bitcoin user has rapid growth from the invention year 2009. Currently 160 lakhs Bitcoins is available over the world additionally 140 lakhs people added it to their wallets. Bitcoin value price rapidly increased over last two years. By the end of 2016 the price is $968. By September 01,2017 the price of Bitcoin raise a little to $ 4950. Again the price gets explode to $19, 500 by December 7, 2017.

Bitcoins Types The following are some of the types of crypto currencies other than Bitcoins.  Litecoin (LTC) – Silver to bitcoin’s gold  Ethereum (ETH) – Mainly used for Distributed Applications

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 Zcash (ZEC) – Blockchain technology  Dash – Darkcoin  Ripple (XRP) A Bitcoin follows a standard pubkey script to compress or encrypt the details or data. There are two kinds of address formats namely P2PKH and P2SH. P2PKH – Pay to Pub Key Hash is a script where address begins with 1. E,g 1BVKCUBE124WE P2SH – Pay to Script Hash is a script where address begins with 3. E.G 3GOLU145efe85

Conclusion Digital wallets usage from customer side as well as the introduction of new applications in the market gets cracked daily after demonetization. The two enhancements may be initiated by the wallet company to the user so that they get benefited.  Inter transactions between two different companies of wallet should be done.  Withdraw option should be made by including it in all banks ATM machines.  Interest rate should be given to maintain the balance for minimum amount of days or months to the user.

References 1. https://cointelegraph.com/explained/bitcoin-price-explained 2. https://expandedramblings.com/index.php/paytm-statistics-facts/ 3. https://bitcoin.org/en/glossary/p2sh-address 4. https://bhimupi.org.in/our-partners 5. http://shodhganga.inflibnet.ac.in/bitstream/10603/11075/10/10_conclusion.pdf 6. https://www.ccn.com/determines-value-bitcoin/ 7. https://rbi.org.in/SCRIPTs/DraftNotificationsGuildelines.aspx 8. https://dbie.rbi.org.in/DBIE/dbie.rbi?site=home

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DATA MINING SERVICES IN RETAIL E-COMMERCE DATA

C. Anuradha, MCA., M.Phil., SET., Assistant Professor, Department of Computer Applications S.S.B.S. Tamil, Arts & Science College, Mailam, Tamilnadu R. Anandavally, M.Sc., M.Phil., Assistant Professor, Department of Computer Science S.S.B.S. Tamil, Arts & Science College, Mailam, Tamilnadu

Abstract Data mining has made broad and is used in a vast array of areas and with diverse applications. Retail e-commerce sector is a major application area for data mining, since it collects huge amount of data on sales, shopping history, promote products and attract customers. The quality of data collected continues to expand rapidly, availability, and popularity of business conducted on Web, or e-commerce. This paper examines the complex issues, challenges, opportunities in the Retail e-commerce domain and gives executives the insight they need to make more effective decisions. It also discusses how customized data mining tools should be developed to improve sales campaign and reduce the cost of business. Keywords: Data mining, E-Commerce, Data warehouse, Retail sector, Sales campaign, Omni channel.

Introduction E-commerce is an significant domain for data mining with massive amounts of click stream and transactional data [16]. Data mining is a process of extracting previously unknown information typically in the form of patterns and association from large Database. By investing in data mining, an organization can gain a competitive advantage and uncover valuable customer information that cannot be identified in any other way [13]. Data mining technology is rapidly becoming strategically important to many data-rich firms. In fact, it is now considered a significant new component of the enterprise decision support system. Data mining in e-commerce is all about integrating statistics, databases and artificial intelligence together with some subjects to form a new idea or a new integrated technology for the purpose of better decision making. Data mining as a whole is believed to be a good promoter of e-commerce. Presently, applying data mining to e-commerce has become a hot cake among business [17]. Retailers are interested in many different types of data-mining studies. In the area of marketing, retailers are interested in creating data-mining models [4]. The quality of data collected continues to expand rapidly, especially due to the increasing ease, availability, and popularity of business conducted on the web, or e-commerce. Retail data provide a rich source for data mining. Retailers procure goods in large quantities directly from manufacturers or wholesalers and sell these in smaller quantities to customers through retail shops or online [11]. As consumer spending is the key to the viability of any economy, the health of the retail industry is an important economic indicator. Today's shoppers are, of course, a highly differentiated demographic that promise to become even more so in the future [5]. Working women, baby boomers, singles, teenagers and even children want products, services and shopping experiences that are as distinctive as they are. Leading retailers aim to satisfy these requirements by diversifying, hence the trend to "niche" stores. This paper also examines how today Data mining technology offers retails the tools they need to make sense of the customer’s data & apply it to business.

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The paper is organized as follows. Section 2 begins with the data mining role in retail e-commerce data. Section 3 describes the issues and challenges in retail sector. Section 4 presents opportunities in retail sectors. Section 5 explained with technology trends in the retail industry. Section 6 talks about the future trends in retail sector. Section 7 is the conclusion of the paper.

Data Mining in Retail E-Commerce: A Seamless Experience Retail e-commerce domain continues to change at a dramatic pace, with shoppers evolving their habits and raising their expectations faster than many retailers can adjust. Through value- driven strategies, is helping retailers operate seamlessly across channels to create an experience for customers [14]. For retailers, data mining can be used to provide information on product sales trends, customer buying habits and preferences, supplier lead times and delivery performance, seasonal variations, customer peak traffic periods, and similar predictive data for making proactive decisions [13]. Data mining can contribute to the retail industry in the following aspects.

Design and Construction of Data Warehouse Retail e-commerce domain cover a wide spectrum (including sales, customers, employees, goods transportation, consumption, and services), there can be many ways to design a data warehouse for this industry [13]. The outcome of preliminary data mining exercises can be used to help guide the design and development of data warehouse structures. This involves deciding which dimensions and levels to include and what preprocessing to perform in order to facilitate effective data mining.

Multidimensional Analysis The retail industry requires timely information regarding customer needs, product sales, trends, and fashions. It is therefore important to provide powerful multidimensional analysis and visualization tools. The multi-feature data cube is a useful data structure in retail data analysis.

Analysis of the Effectiveness of Sales Campaigns The retail industry conducts sales campaigns using advertisements, coupons, and various kinds of discounts and bonuses to promote products and attract customers. Careful analysis of the effectiveness of marketing campaign helps to increase the quality and effectiveness of business marketing campaign [12].

Customer Retention Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections [1]. Sequential pattern mining can then be used to investigate changes in customer consumption or loyalty and suggest adjustments on the pricing and variety of goods in order to help retain customers and attract new ones. The implementation of a customer service standard leads to improved customer service practices, which in turn increases customer loyalty and customer retention [2].

Product Recommendation Recommendations are becoming the norm in e-commerce. Personalized recommendations is designed to drive growth by converting browsers to buyers, increasing order size, lowering cart abandonment and engaging shoppers so they become repeat customers[3]. Roughly 45%

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of shoppers are more likely to shop at store that offers personalized recommendations. Data mining techniques known as basket analysis can make these recommendations [18]. Collaborative recommender systems use data mining techniques to make personalized product recommendations during live customer transactions.

Key Issues and Challenges Retail & Consumer companies face many business challenges including globalization of their industry, supply chain risk, IT management, and media spend, digital transformation, merger & acquisition activity, and regulatory pressures [5]. Arguably Green retailing is the most important issue for retailers today is “The environment”. The increasingly individualized store experience, growth and diversification of formats. Some of the other key issues are  Globalization  IT and security management  Media and promotional spend management  Digital transformation  Consolidation and merger & acquisition activity  Regulatory reform  Supply chain risk management  Revenue growth & margin improvement  Cost management Clearly these are all areas that will influence retailing through the next decade and beyond. Contemplating this increasingly complex, hyper-competitive world, it is somewhat comforting to note that one thing will never change in retail.

Opportunities Rapid advances in e-commerce continue to push industry executives into uncharted territories as retailers work to create new consumer touch points and simultaneously evaluate potential threats from emerging technology-based models. Key digital retail themes include [8]:  The migration of business to the web, which will continue to accelerate as online shopping increases on mobile devices and tablets.  The growing availability of sophisticated mobile devices and apps that provide price comparisons across channels and brands is requiring retailers to carefully consider how they position their brands effectively.  Combat the downward trend of lower store profitability due to online shopping by creating unique, in-store experiences that engage consumers.

Technology Trends in Retail Industry The consumerization of IT and customer expectations are now the driving force behind most technology decisions at retail companies. A transformation is in motion amongst shoppers and retailers country-wide [10].

Trends to Rule Upcoming Years With the growth of the .com era, shoppers have largely adopted to new purchasing modes. Consumers today prefer to use their laptops or smart phones to compare prices of things they

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” want to buy and place orders online, instead of visiting the company’s stores. This growing trend has guided retailer’s chains to downsize their physical retail operations, and in turn, develop their e-Commerce and m-Commerce sites to attract customers [11]. Here are some interesting trends:

Engaging Customers Omni channel marketing is about being present or available across the consumer’s behavioral path [15]. This path is easily tracked across online, offline and mobile touch points (both marketing and transactional).

Knowing and Serving Customers Better Retailers must seek new ways to deliver the most value, revenue and loyalty [10]. To do so, they must harness the increasing volume and availability of data using technology to process large amounts of data into meaningful reports and insights as quickly as possible.

Innovation: Do-or-Die Time for Brand Owners Product innovation has become a must for brand owners, especially in the light of private labels, and they are under pressure as they now compete with their own clients for customers [10].

Engaging Employees With the continued tight economy, the cloud provides cost-effective solutions for retailers to run their business more effectively by optimizing and streamlining operations. For example, a cloud-based Store Employee Portal. By embracing technological change, savvy retailers can meet the changing demands and expectations of consumers, ensure smart and successful business operations and be in a position of strength to adapt and grow as needs change.

Future Outlook The "Re" in Retailing "Transformation" is the new mantra among retailers [11]. Despite rapid technological advancements which are influencing consumer behavior, the retail industry continues to reinvent, redesign and revitalize its physical store formats to maintain their dominance. Retailers will need to transform themselves and adapt to an increasingly polarized world of greater channel fragmentation, non-store retail growth, smaller formats and retail footprints that may not involve physical stores at all [9]. Additionally, retailers will have to cope with an increase in fixed-income consumers, and the new wave of consumers who follow brands via social media. To drive future growth, Retailing 2020 outlines the critical success and manage the complex and diverse realities of the retail landscape in 2020 including:  Total value chain  Dynamic clustering to optimize fragmented growth  Competing on a truly global scale  Branding in Omni channel space  Managing data security and privacy  Managing diverse retail models

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Future findings  Find out how to drive both profits and market share in the new retail landscape.  Build effective customer relationships in a challenging, Omni channel, technology-driven marketplace by listening to case studies and taking part in the interactive workshops.  Identify the latest opportunities in international territories.  Know how to engage the customer of the future using the latest in store technology.

Conclusion Online retail’s e-commerce future remains within data mining because it allows brands to provide consumers with unique, personalized shopping experiences. Retailers are trying to remain competitive primarily by shifting focus to the long-term horizon and finding innovative solutions. Right-sizing inventories, enhancing efficiency and competence and bringing in technological advancements are the key agendas that retailers have to focus. Retail, owing to its huge spectrum, remains a lucrative investment avenue for investors. This paper reviews some of the challenges, opportunities and trends associated with retail industry. And also attempts to define that Data mining as a tool in retail e-commerce domain and thus identifying future winners from the sector would be a good investment decisions. To achieve similar success more consistently, retail industry players will have to learn to collaborate and not just co-exist.

References 1. Reicheld, Frederick, “The Loyalty Effect: The hidden force behind growth, profits and lasting value”, Watertown MA, Business Harvard Review, 1996. 2. The International Customer Service Standard (2009), TICSS2009, The International Customer Service Institute. 3. http://www.internetretailer.com/vendors/personalization/ product-recommendations/ 4. Industry applications of data mining, ABS (Summary of IT Use and Innovation in Australian Business, 2009-10, Cat. no. 8166.0). 5. Data Mining: Competitive tool in Retail Industries, MAHENDRA TIWARI, Dept. of MCA, United Institute of Management, Allahabad, India 6. Pwc and Frost & Sullivan (July 2012) Australian Online Shopping Market and Digital Insights: An Executive Overview, p. 2. 7. Survey reveals opportunities and challenges facing retailers looking to break into retail investment advice market, Rostrum research.com/rostrum-research-whitepaper-oct12.pdf, 8. L.E.K. Consulting INDUSTRY OUTLOOK Retail Outlook 2013. 9. Retailing 2020: Winning in a polarized world, www.pwc.com/us/retailandconsumer PwC/Kantar Retail LLC by Bryan Gildenberg, Sue McPartlin, David Marcotte, Lisa Feigen Dugal, www.kantarretail.com. 10. Trend prediction for retail sector by Gareth Pearson, BIZ community .com (Daily industry news) 11. Zacks Equity Research OUTLOOK, Retail Industry Stock Outlook - March 2013. 12. http://www.mymarketingdept.com/marketing-campaign-analysis/ 13. Jiawei Han and Micheline Kamber (2006), Data Mining Concepts and Techniques, Published by Morgan Kauffman, 2nd Ed.

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14. Sunita sikri & ms. Dipti wadhwa, “Growth and challenges of retail industry In india: an analysis”, Asia Pacific Journal Of Marketing And Management Review Vol.1 Issue 1, September 2012, Issn 2319-2836 15. Retail and Wholesale Environmental Scan: Discussion paper 2013, Service Industries Skills council, Sydney NSW 2001 Australia, www.serviceskills.com.au 16. Ron Kohavi, Llew mason, Zijian zheng, “Lessons and Challenges from Mining E-Commerce Data”, Machine Learning Journal, Special Issue in Data mining Lessons Learned, 2004,pp.1- 30. 17. Ismail M.,Ibrahim M.M.,Samusi Z.M., Nat M., “ Data mining in Electronic commerce: Benefits and challenges”, Int. Journal communications, Network and System Sciences”, Vol. 8, 2015, pp. 501-509. 18. Ari Shpanya, “Why data mining is the future of online retailing”, econsultancy.com/ Blog, 2015.

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CORPORATE SOCIAL RESPONSIBILITY-SURVEY IN INDIA

V. Deepasundari, M.Com., M.Phil., Assistant Professor in Commerce Krishnasamy College of Science, Arts & Management for Women, Cuddalore

V. Harini, III B.Com., (C.A)., Assistant Professor in Commerce Krishnasamy College of Science, Arts & Management for Women, Cuddalore

Abstract Organisations are facing new challenges with the present day demands of globalization. Diverse workforce and increasing technological complexity is trying to cope-up the organization with the demand of social and environmental impacts. For about three decades corporate executives have to struggle with the issue of firm’s responsibility to its society. The social responsibility of an organization does not lie outside to the organization. Corporate Social Responsibility needs to be a part of DNA of the organization. CSR is not a cost-centre but an effective management tool with multi-dimensional benefits. CSR offers a new way to look at the relationship between business and society that does not treat corporate growth and social welfare as a zero sum game. Nowadays, nearly all corporates in the world are involved in CSR activities. This article briefly describes about the CSR activities in India. The new companies Act, has asked corporate India to set up with the provisions that companies invest 2% of their net profits in CSR activities. Indian entrepreneurs and organisations have engaged in Philanthropic and Charitable activities from pre-colonial days. However in recent times organisations in India have both innovation and business acumen in taking up CSR initiatives and integrating them into their business process. CSR activities include Education, Health, Livelihood creation, Skill development and empowerment of weaker section of the society. Notable efforts are come from , RELIANCE industries, , ONGC and others. This article gives a clear idea about CSR in India, its policy, Global principles and guidelines for CSR, India’s CSR reporting survey, CSR committee, CSR spending by companies and its project management. Keywords: CSR activities in India, CSR policy, India’s CSR reporting survey, CSR committee, CSR activities by companies.

Introduction In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013, which was passed by both the houses of the parliament and had received the assent of the on 29th August 2013. As per the Act, companies with a net worth of INR500 crore or more, or a turnover of INR1000 crore or more, or a net profit of INR5 crore in a given fiscal year shall constitute to have a CSR committee. Additionally, companies are required to adhere to a set of criteria including:  Formulating a well defined CSR policy.  Undertaking project in alignment with Schedule VII of the Act and the CSR rules.  Monitoring CSR policy and projects.  Reporting details of the CSR activities in the annual report in accordance with the prescribed format.

CSR Policy As per the Act, companies with a net worth of INR500 crore or more, or a turnover of INR1000 crore or more, or a net profit of INR5 crore in a given fiscal year shall constitute to have a CSR committee. It is constituted by the board of Directors. They will be responsible for preparing a

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” detailed plan of the CSR activities including, decisions regarding the expenditure, the type of activities to be undertaken roles and responsibilities of the concerned individuals and a monitoring and a reporting mechanisms.

Schedule VII refers to the activities which may be included by companies in their CSR policy activities related to Activity (i) : Eradicating hunger, poverty and malnutrition, promoting healthcare, including preventive healthcare and sanitation and making available safe drinking water. Activity (ii): Promoting education, including special education, and employment enhancing vocation skills, especially among children, women, elderly and the differently-abled, along with livelihood enhancement projects. Activity (iii): Promoting gender equality and measures for reducing inequalities faced by socially and economically backward groups. Activity (iv): Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agro forestry, conservation of natural resources. Activity (v): Protection of national heritage, art and culture, promotion and development of traditional arts and handicrafts. Activity (vi): Measures for the benefit of armed forces, veteran, war widows and their dependents. Activity (vii): Training to promote rural sports, nationally recogonized sports and Olympics. Activity (viii): Socio-economic development and relief and welfare of the scheduled castes, scheduled tribes, other backward classes, minorities and women. Activity (ix): Contributions or funds provided to technology incubators located within academic institutions which are approved by the central government. Activity (x): Rural development projects. Activity (xi): Slum area development.

CSR Survey Report This report analysis the top hundred listed companies as per market capital (N100). All N100 companies surveyed, fall within the ambit of this definition and need to have at least the CSR committee in place; a CSR policy should be available in the public domain and an annual report on CSR in the Director’s report. Ninety-five of the N100 companies have a CSR policy in public domain as on 30th September 2015. This section attempts to analyse the availability of the CSR policy in the public domain of which 95 companies had their policy readily available on their company’s website, while for the remaining five companies it was not traceable. Around 92 of the N100 companies have released an annual report on CSR in the prescribed format. Of which 87 have the CSR disclosures in prescribed format as part of their annual report. As on 30th September 2015, of the N100 companies analysed, the following documents have been captured from the public domain in ‘India’s CSR reporting survey 2015’ Documents Reviewed Number of Companies CSR Policy available in the public domain 95 companies Annual reports 92 companies CSR disclosure in annual reports in the prescribed format 87 companies

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A majority of companies (around 90 out of 95) describe their vision/mission or philosophy behind their CSR initiatives, which according to us is a good practice, however, not a mandatory requirement as per the Act and the CSR Rules. This is a clear indication of the seriousness given to CSR. Out of 95 companies, 13 have stated that they would carry out activities aligned to schedule VII, but have not selected any specific area for intervention, while 79 of them have. However, three of them lack details on areas of intervention in the CSR policy.

Source: India’s CSR reporting survey 2015 A majority of companies (around 85 out of 95) have opted for implementing projects directly as well as with support of implementation agencies. Interestingly, 2 per cent of them have opted for implementing the projects exclusively on their own, whereas, 1 per cent has opted the route of implementing the project through implementing agencies. However, 7 companies have not given details on the mode of implementation. But this statistics looks different when the actual project management is analyzed in section 2.3 of this report. Around 75 out of the 95 companies have given details of their governance structure in the CSR Policy, which includes details of the organization’s structure to implement and monitor the CSR activities. Around 63 out of 95 companies stated that the surplus arising out of CSR activities shall get transferred to CSR funds. A majority of companies (90 out of 95) have defined a framework to monitor activities in their CSR policy. It is the mandate of the CSR committee to institute a transparent monitoring mechanism for implementation of CSR projects and programmes. Around 83 of the 95 companies have stated the composition of the CSR committee in their CSR policy. This is a good way to showcase the accountability on matters related to CSR.

CSR Spending by Companies Of the 92 companies reviewed, 87 have the CSR disclosures in prescribed format as part of their annual report; 84 companies were required to spend the prescribed 2 per cent towards CSR. Around 3 of these companies have a lower CSR budget outlay than the prescribed 2 per cent. Interestingly, it is higher in case of 10 companies. Equally interesting is to know that three companies that do not have an obligation to spend, based on the calculations as per section 198 of the Act, are spending towards CSR. Only 32 (38 per cent) companies have spent less than the prescribed 2 per cent, of which twenty five companies have spent less than a per cent, one company has reported a spend of ‘NIL’ during the year. These companies were required to give reasons for not spending the prescribed 2 per cent on CSR activities, of which one did not provide a reason for not doing so. As per the CSR annual reports of 87 companies, INR6490 crore was the total outlay (prescribed 2 per cent amount) to be spent towards CSR, against which INR 5115 crore (79 per cent) was spent towards CSR. Being the first year of implementation, this can be looked at as a good scenario. More than 50 per cent of spends on CSR (INR 2592 crore) are towards health, sanitation and education. (Schedule VII activities (i) and (ii) ). The reason can be owing to the fact that these

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National Conference on – “Changing Global Economic Scenario in Commerce - Opportunities and Challenges” were sectors where companies were already working, even before the Act and Rule has come in place. Thus, health and sanitation are the priority sector of spending (26%) followed by education (24%), environment (11%), rural development (9%) and women empowerment (4%). Areas like contribution for war veterans, technology incubators and slum development did not acquire much interest among the companies for their CSR activities. According to Schedule VII activities [activity (v),(vi),(vii), (viii)] contribute only 3 per cent of their total spends (INR153 crore).

CSR Activities by Companies ONGC: It promotes Health care, Entrepreneurship, Infrastructure support near ONGC operational areas, Environment protection, Ecological conservation, Promotion, Protection of heritage sites, UNESCO heritage monuments etc. promotion of artisans, craftsman, musicians, artists etc., women’s empowerment, girl child development, gender sensitive projects, water management including ground water recharge, sponsoring seminars, conferences, workshops etc., Coco-Cola India: Eradicating hunger, poverty and mal-nutrition, promoting preventive health care, sanitation, promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and differently abled and livelihood enhancement projects, promoting gender equality, empowering women, setting up homes and hostels for women and orphans, setting up old age homes, day care centers and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups, ensuring environmental sustainability etc., Infosys: Infosys Education and Research group has the pride of anchoring the Infosys Extension Program (IEP), which consists of the Infosys Fellowship Program, Rural Reach Program, Catch Them Young and Train the Trainer. It also provide schools with computers it has also helped build 60,000 school libraries. Tata Group: TATAgroup who have setup several hospitals, educational institutions, and township and have contributed tremendously to the promotion of sports and cultural activities. Reliance Group: Reliance group is supplying water by converting sea water into drinking water in Jamnagar Township.

Source: India’s CSR outlook report 2015

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Conclusion From the above reporting survey, the spending of companies towards CSR are analysed. It can be concluded that Corporate Social Responsibility and ethical standards is not the option but the obligation for all business. Corporate Social Responsibility is mandatory for all companies. There are many, even among the top 100 firms by revenue, who don’t report their CSR spends or even declare the social causes they support. That’s because they aren’t required to do so by law.

References 1. KPMG India’s CSR reporting survey 2015 2. India’s CSR outlook report-2015 3. www.ongcindia.com 4. www.coco-colaindia.com 5. www.infosys.com 6. http://www.wbcsd.org/work-program/business-role/previous-work/corporate-social- responsibility. aspx

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