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Working Papers | 1978

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

Gupta Tirath

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

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Working Papers | 1978

Research Reports - Publishing at What Cost and Quality?

Rao S Sreenivas and Srivastava Uma Kant

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

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Working Papers | 1978

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

Gupta Ramesh

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

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Working Papers | 1978

Trade Unionism in India: A Statistical Analysis

Verma Pramod

This paper hypothesises that the growth in trade union membership has been considerably influenced by the economic conditions of workers and the activities undertaken by the unions to protect or improve these conditions. While the former may be represented by such variables as the growth in employment, prices and wages, the latter could be indicated by industrial action such as strikes called by the unions. A statistical model was developed and tested for the period 1930-69. This time-series analysis indicated that employment, wages, consumer price index and mandays lost contributed to growth of unionization. A cross-section analysis based on data for inter-state and inter-industry dispersion in union membership indicated that such dispersion was explainable by employment and mandays lost. There was also some influence of variation in wage-productivity ratio on the dispersion of trade union membership. It was concluded that the unions may make more intensive efforts to organise the workers in low unionised states and industries which may help in re-establishing the wage-productivity parity in these industries and states.

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Working Papers | 1978

Advertising Claims, Expectation Fulfillment and Product Evaluation

Bhandari L C

Consumerism movements like 'Truth in Advertising' have prompted formulation of legal and other public policy measures to regulate deceptive advertising. While a great deal of effort has gone into evolving mechanisms to protect consumers from deceptive advertising. Surprisingly little systemative attempts have been made to investigate whether exaggerated and false advertising claims are at all useful for the marketer in promoting his product. Consumers' attitudes towards products are influenced by i) communications concerning products, ii) experience with products, and iii) interaction of communications and product experience. Expectations are created about products by advertising and other means, while actual product experience and the levels of expectation determine the extent to which expectations are confirmed. This 'expectation fulfilment' or lack thereof (disconfirmed expectancy) influences the individuals' attitude and subsequent actions towards the concerned product or object. It is important to understand and take into account the role of 'expectation fulfilment' while considering influences on attitude and behaviour concerning products. One way to take into account its role is to investigate and establish the nature and direction of influence has on attitude. Unfortunately, both theoretical sources and the limited empirical evidence that exists suggest conflicting and contradicting influences. Moreover, from managerial point of view, situation-specific variables are likely to require a case by case assessment. What is therefore needed is an approach that recognises the influence of 'expectation fulfilment' and explicitly incorporates it in evaluative mechanisms for the major decision areas like new product-concepts and new campaigns. This paper develops and tests a model using such an approach. The model postulates the influence of 'expectation fulfilment' on effective and conative components of attitude. It is tested in the context of a new product-concept evaluation by a sample of 903 housewives. The results, with large and significant R2s and beta coefficients, suggest that a higher degree of expectation fulfilment helps build more favourable attitude towards, and intention to buy a product. The implication is that exaggeration in advertising claims resulting in disconfirmed expectancy does not help a marketer. It is recommended that the construct of 'expectation fulfilment', which captures the interaction between product experience and prior expectations, should be built into evaluative mechanisms for decisions concerning product concepts, product formulations and advertising campaigns.

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Working Papers | 1978

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

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

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

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Working Papers | 1978

An Approach to the Design of Corporate Identity

Dholakia Nikhilesh and Bhandari L C

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

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Working Papers | 1978

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

Dholakia Nikhilesh

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

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Working Papers | 1978

Accounting for Changing Prices: Recent Developments

Gupta Ramesh

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

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Working Papers | 1978

A Framework of Information System for Development Planning

S. C. Bhatnagar

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

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