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Okay, students, let us continue with some more points of the need for economic reforms.

To continue number five, it was burden of debts. What is this burden of debts, students, all about? In 1990-91, the total debt of government of India stood at 62.5% of GDP. So what is this, students, you know, whatsoever be the GDP, of that 62.5% was the debt, was the burden on Indian economy. So India was totally caught up into the debt trap. To continue students, in this situation it was very difficult to pay even interest on foreign debts which is a sign of insolvency. What is this insolvency? It is an inability to pay one’s debt. It was impossible for our country to pay even the interest on the borrowing, students.

To continue, this shook, this disturbed the international confidence on Indian economy. All started getting scared, oh my god, Indian economy being debt trapped, insolvent, what is this. You know what, students, this not only made borrowings difficult but also resulted into outflow of deposits of non-resident Indians. So the amount of deposits, deposited by non-resident Indians started making their withdrawals. So there was a need of economic reforms to reduce this burden of debts. Very important point, students.

To continue with number six, inefficient industrial sector. You know what, students, the various controls and regulations in the industrial sector had reduced the efficiency and competitiveness of industrial units. All the industrialists were frustrated so much of regulations, so much of control. So industrial sector became inefficient.

To continue, this has led to stagnant, very slow moving industrial growth, but very important it started rising unemployment, students. So there was need of these economic reforms to convert inefficient into efficiency in industrial sector.

To continue with the next point, point number 7, there was a falling growth rate. What is this falling growth rate all about? Due to all these internal and external problems which we studied in our previous points, students the annual growth rate was just 2.6%, that’s it. And you know what, it actually reached the negative level of minus 0.6% in May 1991. What is this? There was a growth but in minus, oh my god. There was a negative growth, students. So there was a need of this new economic policy, there was a need for these reforms to accelerate the growth rate, students.

To continue with the next need, that is my wave of liberalization. What is this liberalization, students? It refers to relaxation of previous government restrictions. Remove this controlling, remove this licence raj, please. We are feeling frustrated. There was a wave of liberalization, students.

To continue, around 1990 there was a wave of liberalization all over the world. And you know what, students, several communist countries like Poland, China, Hungary, etc., started liberalizing their economies. Now why they started liberalizing? To increase their growth rate. And you know what, students, they were successful in this mission of liberalization. So India got inspired and followed and resulted into this liberalization.

So these were my certain points of need for economic reforms.

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Okay, students, now let us study, what are the problems faced by roadways and steps to overcome those roadway problems. To start initially with problems of road transport, number 1, poor quality. Students, our roads are of poor quality, which increases the cost of maintenance of the vehicles. Vehicles are moving like dhada, dhada, dhada. So quality is very poor. To continue with the second problem, heavy traffic on roads which results into time and fuel wastage. Third problem is road transport cost is high due to heavy taxes and, you know, the prices of petrol and diesel are increasing; year by year they are increasing, students.  Point number 4, it is responsible for air and noise pollution. A vehicle, a driver can see that the vehicle in front of him cannot move, then too he will baa, baa, baa which creates the noise pollution, students.

To continue students, poor problems of road transports. Large tracts of rural roads continue to remain unmetal that is kutcha and are unusable during monsoon season. To continue with my next problem, students, road transport is comparatively unorganised, there is no lane discipline in our road transport. To continue with next problem, students, not suitable for bulky goods such as heavy machinery because the speed of the vehicle becomes very slow which results into traffic. To continue, students, with my next problem, it is affected due to breakdowns and delays, as you can see in this particular picture.

So this is all about my problems of road transports. To continue, road accidents are more due to unskilled and untrained drivers and there is craze of speed in many youngsters’ lives which results into accidents. Next one, is the rural network, road network is not adequate to match traffic growth. This is all my problems of road transport. But, students, to know what, in order to overcome the above problems a number of steps have been taken. Which are those steps? Like undertaking the National Highway Development Project, which involves developing Golden Quadrilateral, these are my four metropolitan cities Mumbai, Delhi, Chennai and Kolkata so North-South and East- West corridors, port connectivity and other projects. To continue with, certain steps taken like during XI Plan apart from completing National Highway Development Project I and II, work was started on NHDP III, IV, V and VI, why, to ensure inter-regional connectivity of districts, converting single lane roads into two lane roads, so that the traffic gets reduced. Constructing express ways in high traffic corridors etc. Main two important steps undertaken, students.

To continue with further steps, XII Plan aims to complete these projects and also work on state highways and district roads. So, once they are done with National Highways, they will move on to state highways and district roads to ensure full connectivity, students.

To continue, it also aims to connect the remaining rural habitations by constructing new roads and upgrading existing roads.

To continue, very important point road transport will be happy and safe journey if all will start following the rules and regulations of the traffic.

To continue with the next step it is very important for the development of the country that railways and roadways should be complementary to each other, very important point, they should complement each other rather than competing with each other and they are not competitive.

To continue students, with the next step, this is because the road transport links up the cultivators with the local market and also to the nearest railway station.

And my next point is the railways link the areas of production with the consumers at a distance, so that goods can be easily supplied from one place to another place.

These were all about my problems with certain steps to solve road problems.

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Hi, kids we will start with new subject and a new chapter, Organisation of Commerce and Management, under that the very first chapter Nature and Scope or Busy ness of Business, let’s see.

Explain in brief the classification of human activities. What’s the question, human activities means what you and I or we all are busy doing, right, throughout our life we do something or the other. We all talk to our friends, yes. So, that is also a human activity. We do ride bicycles, human activity, correct. We go to the barber, we go to the saloon for haircut, human activity done by barber.  We all dance, play, what is all that, human activity. So, we all are busy in some or the other human activity throughout our life.

Now, let’s understand these activities have been classified into two types, the very first is non-economic activities and second, economic activity. What are non-economic activities? Let’s check out, activities are all those activities which are preformed out of love and affection or as a hobby or joy. Someone is painting, what is it, hobby or maybe for the fun or joy sake. Second, someone is dancing down out here, what is that, hobby or for sake of joy. So, these are non-economic activities. Do remember whenever we are carrying out any activity or a hobby or for joy like these girls, do we get money in return. No, we don’t get money, we don’t get paisa. So, it’s a non-economic activity. The activities are not performed for money or money’s worth.

Economic activities are the activities which are conducted for earning money. You can see barber gets money for cutting hair, right. You buy some flowers you need to pay something, that’s money again. You buy some candy floss, you need to pay money, economic activities, right. Iron, someone is ironing your clothes, he is going to charge you something, we are going to pay money, so it an economic activity. You are going to restaurant or a hotel, the chef prepares something for you, economic activity, why, you are going to pay, right, don’t forget. So these economic activities can be further classified into busyness, that’s business, you are investing money for getting some returns, good returns, that’s a profit, economic activity. Number two, we have profession, you acquire some qualification and you get something in return, money again. At number three, you go for a job as an employee, get something in return again, that’s money. All these are economic activities. Students, I hope it’s very simple and easy to remember. 

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Let’s see, next module, define business and its features, right. Business state of being busy. It refers to production and distribution of goods and services. Production, conversion of raw material into finished goods. You can see logs of woods being converted into furniture, those are called finished goods. Distribution includes a process in which goods and services are sent to customer. So, manufacturer sends it to distributor and from distributor it goes to us, through maybe courier service or maybe through retailer. You can see here, delivery at door step. Goods and services which are tangible, which you can touch, feel and see. Services which are intangible, you cannot see them as in doctor diagnoses patient, waiter serves at hotel to the customer.

Production of goods means actual making of goods, maybe, agriculture or manufactured. Here the farmer working in the farm, cultivating piece of land and growing tomatoes, from there we get ketchup. We call it as manufactured good, right, tomatoes and from tomatoes we get manufactured goods called as ketchup. So, business process includes advertising, transportation, warehousing as well as actual buying and selling of goods and services. And you can see here, ownership transfers from seller to buyer.

Definition given by Professor Haney:

Business activities are all those human activities which are directed towards the production, what production and procuring wealth, who gave, Professor Haney.

Let’s check features. First one involves production and distribution. So, every business activity is concerned with production of goods, right tomatoes to ketchup. Creation of services, next distribution of goods, correct, distribution of goods and services from factory to us, that is consumers. It involves in dealings in goods and services. Cannot take place in the absence of goods and services. Goods involved in a business transaction maybe capital or maybe consumer. Capital goods which are used for making consumer goods, sewing machine, capital goods and consumer goods all those clothes being made with the help of sewing machine. Here, you can see all those dresses are ready, correct, so those are consumer goods. Involves exchange, either it maybe for money or maybe for goods. So, when goods and services are exchanged with money we call it as monetary exchange. You can see shopkeeper selling cell phone, right, to Mr. A and A is paying for it, we call it as monetary exchange. Another example for barter, goods and services exchanged for goods and services.  Mr. A needed wheat and was having excess of rice with another fellow. What he got, he got what he wanted, that is one kg of wheat, but was any money involved, no. So, we call barter. So the process of gifting, donating or personal consumption is not considered as business. I need to gift my niece on her birthday, what, doll. Here the shopkeeper has utilised the product that’s a doll from his shop to gift someone and that’s his niece. So here there is no monetary exchange. It cannot be considered as a business transaction.

Let’s check next, aims at profit. So, basic aim of every business is earning profit. Let’s take more example, right. The customer, ‘good evening, can you show me a beautiful Anarkali dress for wedding’. Shop owner says ‘yeah, sure ma’am, see here is a beautiful black dress it is for just for Rs. 3,999/-.  Customer, ‘I really like this dress, pack it’. So what happened, how much is MRP? Cost price plus profit.

Number five, continuity, business involves production and distribution of goods and services on regular basis. Any isolated transaction that is single of buying and selling cannot be treated as business transaction. Let’s take an example, I have many gift items with myself, I think I should sell it. Since she is selling the gifted items for single time, it is not a continuous transaction, it cannot be considered as business.

Next point, risk, every business has a possibility of incurring loss during its operations, which is risk. It maybe natural risks like glaciers melting down, floods or volcano eruption, right. Or it can be different situations in business. Let’s take an example, ‘Hi, I have prepared 150 paper lanterns, right, and 80 are still left.’ ‘Oh, so you keep them and use it for next year.’ What the shop owner says, ‘no, it’s not possible. These are paper lanterns and if these lanterns are not sold then I will suffer huge loss.’ That means risk. Now there are two parties remember, buyer, seller, right. So these people out here on screen you can see, right, one man is milking an animal, cow, and other one is selling milk in bottle, who are they, the seller and the buyer exchange for money, right, kids. There are two parties, easy to understand, students.

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Okay, new module and new chapter, Retail Trade, Retailer and his features. Let’s check, so the trade in which goods are sold to the final consumers directly, in small quantities is known as Retail Trade, nothing else.

A retailer sells varieties, remember, of goods in small quantities to us, the final consumers. A retailer is the last middleman in the chain of distribution, please mark this. As an objective, it appears, right, in your unit test or maybe in term examinations. He aims to satisfy the consumers.

Definition of Retail Trade: According to William Stantan, ‘Retail Trade includes all activities directly related to the sale of goods and services to the ultimate consumer for personal and non-business use’. So, he will do everything for selling it to final consumer, do remember, kids. And not for non-business use.

Retailer, according to W. Cundiff and R. Still, ‘Retailer is a merchant or occasionally an agent, whose main business is selling directly to ultimate consumer’. So, the person or person is called Retailer.

Let’s start with features. A retailer operates in, right, local market near residential areas, correct. Retailers deal in wide variety of goods to satisfy demands of different consumers. You can check in the shop, so many products like cleaning products, tea, coffee, honey, dairy products and you find variety and variety lots of varieties. ‘Hey, Mr. Vinod, this month consumers are demanding more Apul ice-creams. Demand for Wality ice-cream is less’. ‘Oh, so I will supply you more of Apul ice-creams this month’. ‘Yes, deliver only 50 pieces of Wality ice-cream’. ‘Yeah, sure’. A retailer is the link between the wholesaler and consumer. He knows exactly the consumers’ demand. I order goods as per consumer demands. I do not stock large quantity of goods. So, capital investmentrequired is, right, is less. So, retailers invest limited capital in their business. They enjoy credit facilities from wholesalers. Here, is a beautiful example, ‘Hey, Sameer, what’s going on?’, ‘Nothing special, business as usual or normal’. ‘Same here the demand for this Wality ice-cream has reduced nowadays’. ‘Yeah, this month I ordered only 50 pieces. So, I am not going to incur huge loss’. ‘Yes, we order goods from wholesaler in small quantities as per the customer demand, so we are safe’. So, retailers undertake less risk as they do not hold large quantities of goods, right kids. Herein, customer approaching to the retailer. ‘Hello, aunty, how are you?’ ‘I am fine, dear’. ‘Here is your regular soap and toothpaste’. ‘Oh, thank you dear, God bless you’. So, kids, what is this? Retailers always have good relations with, correct, customers for continuous business.

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Hi, kids, we are going to learn new subject called Secretarial Practice. Something about the gentleman standing next to me and let’s see now, the first chapter Secretary.

The first question, explain the meaning and the origin of secretary. Now, the profession of a secretary dates back to the early days of human civilization. It is going on from many years. What, the profession of secretary. You can see very, very early days of human civilisation. In ancient time kings, right, kings, ministers and wealthy landlords. Now, what’s common between all of them? They all are very rich people, wealthy people and very busy people. So, they used to appoint a person called secretary, to help them, right kids, do remember that. The secretary used to look after their personal and confidential matters. So, let’s check an example given out here, right. You can see the boss seated on the seat here. ‘I request you to keep these documents safe in your custody’, boss says this to the secretary. And what the reply is coming from secretary, ‘Sure sir, don’t worry about it’. That means what the secretary keeps everything in custody, safe, right kids. So, the secretary used to provide advice and guidance on important matters to his boss, why, because he is very wealthy and busy person. So, obviously only those persons having qualities of intelligence, discipline and loyalty were appointed as secretary, correct. That means if you want to become a secretary, you need to have a quality of intelligence, discipline and loyalty.

So, let’s see the word Secretary, where do we get from Latin word ‘Secretarius’ which means a confidential officer. All the confidential matters are with him or the person to whom confidential matters are entrusted, right, that is given in trust. Kids, check out this, the person standing next to me, everything secret with him. Check the spelling very carefully secret-ary means secretary. Now, let’s check out, how we got and what they were called in different parts of the world? In Latin civilisation they used to call him as Secretarius, right, and in Roman Empire, they were calling him as Scribae, the person who writes communication on behalf of kings, ministers or very wealthy landlords. And now, Ancient Indian Civilisation, they were calling him as Amatya, Sachiva, Chitnis.

I hope so, kids, these all things are very simple to remember.

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Kids, we start with yet again a new module. This time name of the chapter, what, yeah you recollect, Joint Stock Company and features of the same, so let’s check.

A Joint Stock Company is a voluntary association means willingness of the people to be a member formed for the purpose of undertaking a business. So willingly they take a part in it, if they don’t want they don’t, right, they can stay away. It is called as Joint Stock because shares or the stocks of the company are jointly owned by its members so everyone is the owner of this company. A Joint Stock Company undertakes different business activities like manufacturing, marketing, servicing and etc.

The funds required by the company are contributed by its members called as shareholders, you can see next to me. Now the shareholders are the co-owners, right, I told you each and every person who buys the share becomes the co-owner, right, and they share profits of the company in the form of dividends, that is share in profits. Now the company is managed by board of directors. Now board is a group of elected representatives of the shareholders. Board frames the plans and policies of the company. Who elects board of directors? Yes, shareholders, remember that. The board in turn appoints several other mangers and subordinate staff to look after day to day aspects of the organisation. So they have support staff. And who appoint board of directors, shareholders. And who appoints support staff and all, board of directors, remember that. In India Joint Stock Companies are governed and registered under yes, ICA, 1956, that is Indian Companies Act, 1956.

Now let’s take the definition of Joint Stock Company.  A company means a company registered under this Act, or an existing Companies act.

An existing company means a company formed and registered under any of the previous Companies Acts, right. Now this is the definition which is given in section 3(1) (i) of the Companies Act, 1956.

Let’s check feature number one. We call it as an Artificial Person. A Joint Stock company is an artificial person created by, yes, law. So who gives birth, law gives birth to this artificial person or you can call it as a Joint Stock Company. It has no physical existence but it has a legal existence, right, remember. Like human beings it can acquire property, enter into contract, right, signature can be done and can take legal action. So remember what does that mean, we can sue this company and this company also can sue us. Sue means, right, file a case against, remember that. Incorporated association, every company in India has to be registered under Indian Companies Act, 1956, remember that. Registration of incorporation gives birth to a Joint Stock Company. Perpetual succession means very long life, so once the company is started, a company has a very, very long or perpetual succession, it means the company has a long and stable life. Its existence is not affected by death of any shareholder or insolvency or maybe insanity, right, someone becomes mad, it doesn’t affect the company’s business, right, or existence. You can see there, insanity, the state of being seriously mentally ill or madness. But company continues, continues and continues. Common seal, a company is an artificial legal person, and as such it has to sign documents and other papers, right, do remember that. So what do you need, you need a common seal so it cannot sign like us, right. So therefore a common seal serves as the signature, kids, do remember signature. Affixing of the common seal on important documents is witnessed by the signature of two directors of the company, right, that means wherever you find the common seal you will find the signatures of two directors along with it. You can see, right, along with the common seal directors are signing the same important documents. So the common seal remains in the custody of yes, board of directors. Separate legal entity, a company has a legal entity, separate and different from its members. A company cannot hold a member responsible for the debts of the company, correct. So whatever debts company takes the company is responsible, whatever debts shareholder takes, shareholder is responsible. So they cannot hold a member responsible, right, kids. So do remember these features. We continue remaining in the next module.

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Hi, kids, we start with a new chapter, Company Meetings Part 1. Right, kids, let’s see this.

Let’s check the first module, define meeting, explain the need for meeting. Now the term for meeting is derived from the Latin word ‘Maeta’ means face to face. Now according to the Webster’s Dictionary meeting is an act of coming together to discuss any particular matter. The above definition indicates the following points. Minimum two persons are necessary to conduct a meeting, right, so it can be more than two. Time and place is predetermined, decided in advance. Meetings are held to discuss matters of common interest. These matters should be acceptable from legal point of view.

Now let’s take an example. Here we have a farmer working on his farm and earning a sufficient amount annually. A friend of the farmer advises him to invest in shares and stocks. One day a letter given to the farmer for a company meeting, right. A farmer is shocked with the letter. His friend that it’s company meeting letter. The farmer went to the meeting and surprised to see what happened because he don’t anything about it, right. So he was totally surprised. The farmer went to the company secretary to get all the necessary information regarding the meeting. Now what is company meeting, he is explaining, right, kids, so let’s see.

A company meeting is commonly defined as an assembly or gathering of shareholders connected with the company who want to discuss and decide the matters related to it, right, kids, please understand it is a gathering of shareholders and connected with the same company want to discuss something about the matters related to the company. From the point of view of the company, meeting is an official gathering of shareholders, directors and creditors of the company. Company meetings take place when shareholders and directors come together as per the notice and conduct business as per agenda, right, kids.

Need of meeting, to determine the policies and the programs. Future of the company, to prepare future plans. To provide opportunities to members to come together, right, they meet each other.  To solve certain problems faced by the organisation. To take action against members in default. To declare dividends. What is dividend, share of profits of the company. To appoint directors and auditors, to review the progress made by the company. To know about the progress made by the company you have to attend the meeting. To comply with the statutory requirements, statutory, legal, comply, follow or fulfil. To study and give approval to all annual reports, right, statement of accounts, auditors’ reports and other reports.

Right, kids, first module was simple and clear to understand. 

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