Management and Finance (UGC/NET Paper II & III)

Non-performing Advances (NPAs) refer to loans or advances where principal or interest payments remain overdue for a period of 90 days or more. The 90-day threshold is the regulatory standard used by Indian banks to classify an asset as non-performing, triggering provisioning requirements and closer monitoring by regulators.

 Right shares carry preferential rights for existing shareholders to buy additional shares in the company.

 The factors to be considered while designing capital structure are risk, return, flexibility, transferability, capacity, control, agreement.

 A term loan is repaid in regular payments over a set period of time. Term loans usually last between one and ten years.

Social Security Benefits are the monetary benefits received by retired workers who have paid in to the Social Security system during their working years.

Public Sector Banks had the highest Return on Assets (ROA) in 2005-06, around 1.0%, compared to private and foreign banks. This was due to their dominant market share, lower cost of funds, and established customer base. Private sector banks had lower ROA (0.7-0.8%) due to higher operational costs and aggressive expansion. Foreign banks had even lower ROA due to limited branch presence and higher compliance costs.

  The Industrial Finance Corporation of India (IFCI) was established on 1 July 1948.

 The Asian Development Bank is a regional development bank established on 19 December 1966, maintains 31 field offices around the world established to promote social and economic development in Asia.

The merger of ICICI Ltd with ICICI Bank in 2002 (effective April 2002) was the first major M&A activity after financial liberalization in the 1990s. This was a reverse merger where the parent company ICICI Limited merged into its subsidiary ICICI Bank. This created India's first universal bank and set the precedent for similar consolidations in the Indian financial sector. The merger was completed in fiscal 2002-03.

The term 'international liquidity' connotes the world supply of reserves of gold and currencies which are freely usable internationally, such as dollars and sterling, plus facilities for borrowing these.

Bertil Ohlin (note spelling correction from 'Bertic') developed the Heckscher-Ohlin model of international trade, which explains trade patterns based on factor endowments. The model shows that countries export goods that use their abundant factors of production and import goods that use their scarce factors. This fundamental theory (with Eli Heckscher) earned Ohlin the Nobel Prize in Economics in 1977. Adam Smith proposed absolute advantage theory, while Arthur Okun is known for Okun's Law in macroeconomics.

In the mid-2000s, India had 21 approved stock exchanges, though many were small regional exchanges with limited trading activity. Major exchanges included BSE, NSE, and several regional exchanges like Calcutta, Delhi, Madras, and Hyderabad Stock Exchanges. Over time, many regional exchanges have merged or closed due to lack of volume and the rise of electronic trading on national exchanges. The number has since decreased significantly.

Capital gearing ratio compares owner's equity to borrowed funds. It measures long term solvency of the firm.
Activity ratios are accounting ratios that measure a firm's ability to convert different accounts within its balance sheets into cash or sales.  Fixed assets turnover ratio is one of the most popular activity ratio.
Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
The acid-test ratio is a strong indicator of whether a firm has sufficient short-term assets to cover its immediate liabilities. 

The Double Taxation Avoidance Convention (DTAC) was signed between India, Serbia, and Montenegro in 2008. This agreement was signed when Serbia and Montenegro were a single state (State Union of Serbia and Montenegro). The agreement came into force in 2010 and aims to prevent fiscal evasion and double taxation of income in both countries. Such agreements are bilateral treaties that allocate taxing rights between signatory nations.

ASEAN aims include accelerating economic growth, social progress, and sociocultural evolution among its members, alongside protection of regional stability as well as providing a mechanism for member countries to resolve differences peacefully.