Book Review - Ignited Minds By Shree A.P.J Abdul Kalam

The title for this book ‘Ignited Minds’ suits it perfectly. As it really Ignites ones mind. The book covers every aspect which is yet to be explored and discovered by us as a Nation. 

Nations consist of people and with their effort, a nation can accomplish all it could ever want. Motivating India’s youth especially, is the central theme of Ignited minds

The beauty of this book lies in the fact that, while emphasizing on the technological development of nation to make India stand in the elite group of developed Nations. The author also drew attention on social and cultural aspect. The author mentioned how spiritual education along with Knowledge can create wonders.

The book talks about how one should integrate our cultural and social values (ethics) with modern thinking, Enthusiasm of youth. This integration will produce potential leaders, Role models for tomorrow which will have integrity, respect and the thought of  “Nation comes first” embedded in their hearts and minds.

In the nine chapters of this book the author take up various themes. He begins with a rumination on peace, without which there can be no progress. Further, there is a chapter based on his interaction with children all over India. Other chapters contain the insights he gained in his meeting with saints and seers, scientists, outstanding teachers and others. 

The reader feels connected to the wisdom that is so special to this soil when he/she goes through these nine chapters.

It gives us insights about the problems, hindrances India faced through its development phase after Independence and how this great country overcome all those hurdles. The visionary thoughts of Dr. Kalam will act as guidance and will help us to serve our country in the best possible manner.

Whom should read this? Suitable Audience

This book contains language with deep meanings which requires some level of maturity to get understood in the same manner in which the author is trying to.

This book is a must-read for anyone who wants to have a peek into the great potential our country has, the diversity which makes it so rich, the great potential which is hidden in the various corners of the country and how the realization of one’s higher self within us and the faith in our dreams can take us to places.

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Igniting Minds is all about breaking away from the forces that would prefer selling cheap labour and raw materials and providing a large market for goods and services of other nations. It is about developing that conviction in ourselves, and discarding the things that hold us back.

Dr. Kalam writes, embed the thought 

“Nation is bigger than the Individual” in the minds of the leaders and people. And when they recite this, I see the developed India.

Borrowing Powers of a Company

A company needs money to finance its activities from time to time. A part of this requirement is met by the issue of shares, for the rest the company has to resort to borrowing.

Every trading company has implied power to borrow money for the purposes of its business. Non-trading companies must be expressly authorized to borrow by their MOA (Memorandum of Association) & AOA (Article of Association).

• A private company is entitled to borrow immediately after its incorporation.

• A public company cannot borrow until it secures the certificate to commence business.



Borrowing by a company may be -

• A borrowing which is ultra vires the company or

• A borrowing which is intra vires the company but ultra vires the directors i.e. beyond the scope of the authority.



Borrowing which is Ultra Vires the Company

If a company borrows money beyond its express or implied powers, the borrowing is ultra vires the company and is void. No debt is created and the securities given in respect thereof are inoperative and void, and no ratification can render the debt valid.

• Lender’s rights when borrowing is ultra vires.




Borrowing which Ultra Vires to the Directors

• If the borrowing is in excess merely of the powers of the directors but not of the company, it can be ratified and rendered valid by the company.

• In such a case, the loan binds both the lender and the company as if it had been made with the company’s authority in the first place.

• If the company refuses to ratify the directors act, the normal principles of agency apply.

What are Shares & Its Types

A share is the interest of a shareholder in a company. The capital of a company is divided into certain invisible units of a fixed amount. These units are called shares.


Types of Shares

Under the companies Act 1956, a company can issue two types of shares viz. (1) Equity shares & (2) Preference shares


(1) Equity Shares

Equity shares with reference to any company limited by shares, are those which are not in preference. It is commonly referred to as ordinary share also represents the form of fractional or part ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. 

The holders of such shares are members of the company and have voting rights.


(2) Preference Shares

Preference shares, with reference to any company limited by shares, are those which have two characteristics:

• They have a preferential right to be paid dividend during the lifetime of the company

• They have a preferential right to the return of capital when the company goes into liquidation.

Preference shares are of following kinds: 

• Cumulative preference shares. 

• Non-cumulative preference shares. 

• Participating preference shares. 

• Non-participating preference shares. 

• Convertible preference shares. 

• Non-convertible preference shares. 

• Redeemable preference shares.

External Environment: What does this Mean in Management?

An external environment is composed of all the outside factors or influences that impact the operation of business. These are generally uncontrollable for a business concern.

The external environment can be broken down into two types i.e. (1) the micro environment & (2) the macro environment.


(1) Micro Environment

It consists of the factors that directly impact the operation of a company such as:

• Customers

• Suppliers

• Competitors

• Market Intermediaries

• Public



(2) Macro Environment

It consists of general factors that a business typically has no control over. The success of the company depends on its ability to adapt the such macro factors. These factors are:

• Economic

• Political

• Socio-cultural

• Technological

• Global

How to Measure the Output of Economy

Before getting into the concept, first understand about the Factors of Production. To produce anything certain things like raw materials, labor, infrastructure is required. These all are known as “Factors of Production”.

Now, once we understood what is Factors of Production in an economy, now know how it assists in computation of Output:

Monetary value of output can be viewed from two perspectives: (1) Factor Cost & (2) Market Price

(1) Factor Cost: It includes income for factor of production

(2) Market Price: It includes Net Taxes (Net Taxes = Indirect taxes – Subsidies) 

Output @ Factor Cost -  Output@ Market Price = Tax Burden on an economy

This tax burden is used for cross country comparisons

 

However, while computing inflation one should always try to reduce the impact of inflation on the output otherwise it will not provide a clear picture about the economies. Therefore, while calculating the output of an economy, GDP Deflator is generally used.

GDP Deflator: It is a statistical exercise which gives output at Factor Cost in terms of constant prices by reducing the effect of Inflation towards output.

Therefore, on this basis on can differentiate the types of economic growths:

· Real Growth: Adjust Inflation

· Nominal Growth: Ignores the inflation adjustment


Always keep one thing in mind, the growth always should be “Real Growth” which means Increase in GDP at Factor Cost with Constant Prices.

Iconic cities of India you must visit!

India has been home to great & ancient civilization in the world. It hosts rich & diversified culture in it.  

Here are most iconic cities, where one must visit!

Mathura (Bolo Bansiwale ki Jay)

When it comes to the iconic city, Mathura will undoubtedly top the ladder. Located approximately 145 km far from India’s capital. It is famous for Hindu’s god Lord Krishna. In Hindu Mythology, it is believed that Mathura is the birthplace of Lord Krishna. 

The narrow lanes & holy kinds with unique temples all over the town makes it even more special. Not only Mathura, the nearby areas like Vrindavan, Govardhan & the river Yamuna all seems to be a perfect holiday destination with family. 

Jaisalmer (Royalty is in the air) 

Once you landed in Jaisalmer, you will automatically start feeling like a sense of royalty. Located around 575 km away from Jaipur (state capital) the city Is called known as “the Golden City”. It is also a world heritage site. The fort, Jain temples, lakes & last but not the least – the great Indian Thar desert, all are worth visiting. 

Leh Ladakh (land of high passes)

It is like paradise on earth. The beautiful mountains & lakes with cold breezes all around. A road tips with your loved ones is must & if you do it on Bullets (Bike from Royal Enfield) then it would be Cherry on the Cake! 

Varanasi (Har Har Mahadev) 

How one can forget the Ghats of Varanasi. The people out there, the holy temples with the aroma of Bhakti & devotion. One must take time to visit there once. 

Amritsar (The golden city) 

Situated around 456 km from the national capital, Amritsar is famous for The Golden temple. The city had witnessed several historical events which makes it so iconic. The Wagah Border (Border of India & Pakistan) situated only about 28 km away. Everyone must take time to visit Amritsar. 

Let's Live Ourselves!

We all have been brought up by listening to the lectures about leading a good, prosperous, hassle-free and happy life, but do we really follow anyone of them? Right from our childhood, we all have been taught to be polite and helpful to everyone, but do we really are?

Sometimes we feel like to help someone, to talk to someone, but we couldn’t.
What is the thing which holds us to do so? After so many experiences, I came towards only one answer. It is the ego which holds us. Everyone have the same heart, which almost same emotions but still, we are having conflicts with each other.


Ego is a small word with only three letters of English, yet it is so powerful that it creates differences between the most beautiful creation of God on this Planet. People stop talking to their loved ones, friends just because they have this little feeling of anxiety embedded in their hearts.


So, what’s the solution of this? How this so-called “ego” can be forgotten from the hearts. The only thing we have to do is to smile, just smile and initiate.


It actually makes things a lot easier. When you smile, it makes yourself more approachable for others. Others feel comfortable and they might encourage themselves to talk to you, just by seeing you smile.


They might also come to you and may solve all those misunderstanding and Grudges which you both might be having in your hearts from a long time. When you meet them or see them, just smile.

Life is full of unpredictable happenings. Do not make it worst by complexing and messing things in your mind & hearts.

If you are having some issues with anyone, talk to them directly. Initiate first, listen to them and even if you are not coming to a conclusion (Point), still the argument is going on, then say sorry. What is the issue in saying sorry, even if you have done nothing wrong?


Ask yourself what is more important, your so-called “EGO” or “THAT PERSON”?


If the answer is “that person” then there should not be any problem in apologizing to them, even if you have done nothing wrong.

I have seen many people saying that, why I apologise? That wasn’t my fault. That person should talk to me first and the cycle goes on. It is the ego which forces them to do so. Only thing comes to my mind in such situation is that why people cannot initiate first keeping all those grudge and ego aside for a while.

All it takes is a beautiful smile and a sorry and that person will be yours once again. See, it is that simple!

Try this once, it actually works. Keep your ego aside for a while and initiate. Soon you will observe that you have started living even single moments too. 💙

Foreign direct Investments: Basics to Know

Foreign direct Investment (FDI) is the inflows in cash as a part of investment for acquiring the management control in an enterprise which is operating in the country than that of such investor. In simple terms, investment directly made by a foreign company business in another company situated in the other country.

It increases the domestic capital cash inflows which ultimately boosts economic growth of the country.



Advantages of FDI

• Increase in employment
• It will create the flow of money in the economy
• It will create the competition among the market which result in better quality product and ultimately the customers will get better price.
• Increase in Infrastructure.
• Increases the standards of goods produce.
• The government will have better image at the global point of view for the country as a whole.

Disadvantages of FDI

• Inflation would increase due to the foreign influence.
• Increases Monopoly.
• Domestic market players would suffer due to the new entrants in the market which would affect their selling power.

FDI would lead to a more comprehensive integration of a country into the world markets. It enables a country to create a strong position in globally by exporting its quality products and services.

While FDI has been opposed by several in the past citing fears of loss of employment, adverse impact on traditional retail, adherents of the same indicate increased transfer of technology, enhanced supply chain efficiencies and increased employment opportunities as the perceived benefits.

 

FDI is good for any country to develop economically & technologically.

Output of an Economy: GDP , GNP & NDP , NNP

In every economy, Goods are always produced (example: Cement, steel, mobile etc.) & Services are always rendered (example: banking, insurance etc.). Good are tangible in nature but services are intangible. All these consist a monetary value with it.

Output of any economy comprises all the goods & services (either produced or rendered) which are exchanged for money in a given period of time. Output includes all the goods & services exchanged for money.

Remember one thing, second hand goods are not counted while computing the output. Such goods are already counted while they were manufactured. 

Therefore, we can say that only the final goods are considered.

What is Domestic output?

All the monetary value of final goods & services within the geographical boundary of a country. Remember one thing, while computing domestic output, we include all the goods & services produced by all the people in the boundary of a country. 

Example: It will include all the individuals, public, private & foreign companies 

It is also called as Gross Domestic Product (GDP)

Gross Domestic Product GDP [ (+) incomes of Indian abroad (–) Income of foreigners in India ]     

                                      = Gross National Product GNP

 

If GDP is greater than GNP, then it can be said that the income of Indians abroad is less than incomes of foreigners in India 
 If GDP is lesser than GNP, then it can be said that income of Indians abroad is more than the incomes of foreigners in India.

Now we have understood the concept of GDP & GNP

What is NDP (Net Domestic Product) & NNP (Net National Product)?

If an economy ignores ‘depreciation’ of its machine stocks then it is called as “gross” concept. However, when an economy considers ‘depreciation’ then it is called as “net” concept.

 

 GDP – depreciation = NDP (Net Domestic Product)

GNP – depreciation = NNP (Net National Product)

 

What is the best method to measure growth of an economy?

Out of GDP, NDP, GNP, NNP the best method to measure economic growth is NNP (net National Product) because it covers incomes of all the nationals of a country after depreciation.

 

Problem with NNP in measuring growth

·         Now a day’s countries are having high external debts which one the one hand increased GDP, but on the other side decreases GNP.

·         Even a sale of a particular assets to a foreign entity would result into increase GDP but decreased GNP.

 

Therefore, most of the economies (including USA, India etc.) have switched over to GDP to measure economic growth.

Why Dutch withdrawn their ideas to rule India

 The advent of Dutch to discover other routes to trade had started during the 1530s when commercial enterprise led the Dutch to undertake voyages to the East of Europe. Gradually they reached Sumatra & Bantam by early 1600s.

In 1602, the East India company of Netherlands officially came into existence. The set their first factory in Musulipatam (Andhra) in the year 1605. From there, the Dutch conquest took place. Now they started signing treaties & or able to get permission from Indian rulers for setting up factories at various parts.

The period from 1610 to 1663 witnessed the Dutch colonial power & naval supremacy to its peak. During the same period, they were able to obtain strategic positions like Pullicat, Surat, Patna & Cochin.

However, in between the same period, they stated facing severe opposition from other Europeans as well. The British supremacy became a major threat to Dutch’s interests. As a result, rivalry started between two. Both the powers fought at Amboyna (Indonesia) for many years. Finally, in the year 1667, both agreed to compromise & the Dutch got Indonesia.

In the year 1693, they attracted French base in Pondicherry & captured it. However, Treaty of Ryswick (1697) restored Pondicherry again to French.

Now, Dutch have started taking more interest in Indonesia & region around because of its rich spices. The Dutch were able to earn huge profits from trading such spices to European markets. In short, Indonesia had become their strategic area.

However, at the same time, they tried to oppose or to suppress the Britishers. For the same reason, they have created a temporary alliance with Mir Jafar (Nawab of Bengal) & attached British camps at Hooghly. This stated war between Dutch & British (The Battle of Hooghly, 1759)

The war with English proved to be a serious setback for Dutch. They realized from such defeat that, it is not feasible to oppose Britishers (who have a political interest in India). Since then, The Dutch were concerned about trade only from India & gave up all motives to build an empire. They focused on Indonesia.

Short history of French in India

In the year 1664, the French government set up company name as “Compagnie des Indes Orientales”.

They stated their settlements in Pondicherry (1673) & gradually developed it as French headquarters. They had to defend Pondicherry from Dutch who captured it but Treaty of Ryswick (1697) restored Pondicherry to French.

In early 1700s war of Spanish succession broke in Europe which made French abandoned their factories at Surat & Bantam. During the same succession, French position further reduced by the death of Francois Martin (1706).

However, a French company in 1720 again reorganized & during 1720 – 40 it revived it lost strength/position. Histories also believed that it becomes possible because of their wise governors & their possession of Mauritius.

As French stated regaining their lost position, the English considered it as a serious threat to their rule. This lead to an outbreak of 3 Carnatic wars between both the European powers.

1^st Carnatic War (1740 - 48): French defeated English with a small army at Madras.

2^nd Carnatic War (1749 - 54): Death of Nizam ul Mulk (Nizam of Hyderabad) again bring two European nation against each other.

3^rd Carnatic war (1758 - 63): French captured English forts at Vizianagaram (1758) which resulted in Battle of Wandiwash (1760 - 61).

This battle at Wandiwash (now Vandavasi, a town in Tamil Nadu) proved to be a very humiliating victory for French. The English army completed outrun French army & forced them to surrender on (16/1/1761).

After the war of Wandiwash, the English become the real king of the Indian subcontinent.

However, in the year (1763: Treaty of Paris) the English restored all the French factories back to them.

Since then the French were only allowed to use India for trading purposes.